Nationwide AIP referred to underwriters.

gillydee

Hi all,

Been stalking this forum in preparation of my mortgage application and now I need your advice (although inside I know it's just a waiting game really).

I went in for my mortgage application and it got referred to the underwriters at the AIP stage and wondered if you had any thought/what you think my next move should be.

A little background-

I am a FTB.
Property value is £155k.
I have a 5% deposit.
Applied for a 60% share so £93k with a mortgage for £85k (Scotland NSSE)

I have 1 missed payment on a credit card in Dec 2012. The maximum balance is 1k but i've never used the whole amount. Apart from that, all my accounts are up to date. I put £150 onto my credit card last month and paid it off before the end of the month, but the broker still put this in (presumably just incase any credit searches came back with it not being paid yet incase they haven't been updated??) Broker is of the opinion that my single missed payment shouldn't cause a problem but I suppose this might not be the case as my application has been referred?

A part of me is thinking it could be to do with affordability? As part of the initial meeting last week, we obtained a DiP from Halifax which came back as £110,000, so didn't think much of it, as I am only requiring a mortgage of £86,000. We then did an affordability check with Nationwide and only when it took into account my overtime did it just give the ok...i.e i just met the requirements.

We went through the initial full Nationwide Mortgage Application today, and it came back as a decline based on a mortgage of £86k over 20 years using my basic salary of 24k. It suggested the term would need to be increased to 28 years...not sure why the broker didn't put in my overtime as we knew this based on my previous meeting.

The broker then tried it again but took into account my overtime over the past 3 months which equated to roughly an extra £250/month when averaged over the past 3 months. At this point it then said was to be referred and i would need to submit proof of ID, proof of address, payslips, and bank statements. Broker is going to try get it escalated with the BDM, as all my paperwork is ready for them to review, and the house is ready to move into.

Is this referral likely to be due to the overtime issue? Or the fact that I have a single missed payment dating back to 2012? I know it will really be a guessing game, but thought I'd ask your opinions if you think any of the above is going to affect my application?

I know Nationwide tend to be quite strict with their lending, so should I prepare to look elsewhere?

Thanks in advance

libf

I have a clean credit history and my DIP was referred. Sent a payslip and a bank statement and it was approved a day later. Don't over think it.

gillydee

Hi libf,

Thanks, It's nice to hear something reassuring. I am quite the worrier though!

dgtazzman

I wouldn't worry too much, I get the impression it's pretty random with Nationwide. I applied with a mortgage for them around 2.5 years ago together with my then-wife. That all went through pretty smoothly. A divorce and a move later, I have now applied for a new mortgage with them, initially all went through without a hitch, but just before the offer was due to be sent, their computers crashed and they lost my application, meaning they had to type it all up again and restart the underwriting process.

Now they've been asking one question after another all week, while nothing has changed in my case, they're the ones that lost the application, just guess it's been selected for some extra scrutiny this time round. It's a bit (well, more than a bit) frustrating, but nothing much you can do about it. If they say jump, you ask them how high...

It's only a late payment, not a default and it's 3 years old, so I doubt that is going to have much of an impact. I'm guessing it is the overtime, they've been nitpicked on that in my case too, well, more taxes really, they've yet again asked for proof I have no income tax outstanding, while they already had my SA302's for the last 3 years confirming this, but they wanted print outs from my online HMRC account too ^^

Guess the underwriter in my case can't get his head around the fact I'm exempt from income tax due to my profession. Maybe he/she is jealous

P.S. They should only care about credit card balances that aren't paid off at the end of each month. I spend quite a bit on my CC (gogo Nectar points), but pay it off in full every month, so it doesn't have to be declared and I haven't heard them about it, while you can clearly see the spending/repayments on my credit file.

gillydee

Hi dgtazzman,

Your tax exempt?! lucky you!

Thanks for replying though. I suppose I have never done this before, so it's kind of learning as I go along. My overtime isn't consistent each month i.e one month i can get around only an extra £50, others it can be up to £200 or more. Is this likely to cause problems? If they decline on affordability , do they offer an alternative, like increasing the term which decreases the monthly repayment? Or do they normally just do a straight decline with no options, do you know? GL for your application too!

dgtazzman

Dunno, never been declined, but that would be something for a broker to look at. Due to the complexity of my case, I don't go direct, a few hundred on a broker saves me a world of pain.

Now I get to play another game, a few weeks ago I was told the valuation had come in fine, now, just as we're yet again at the mortgage offer stage, they've turned round and said they actually think it's worth 12k under asking (it's a newbuild). I actually agree with them it's overpriced in the current local market, so now I get to fight it out with the builder tomorrow, or start from scratch...

Buying a house is so much fun.

Wales1783

Hi,

My broker submitted an aip yesterday which was subsequently referred. I already had an aip with Halifax, but the broker advised to honesty nationwide as they were offering a better rate.

The application was for £287k. House is £332k and putting in £45k. My basic is £65k with £13k annual bonus and my wife is £14k basic.

I have car finance and loan along with a credit card at 0% which I advised will be paid off next month.

I've never missed any payments or gone over any agreed limits, no defaults/ccj etc.

I am confused and worried that this has come up as our offer has been accepted based on Halifax dip, and we have accepted an offer on ours.

Broker says not to worry as nationwide often refer for values of £250+. Is anyone aware of this or should I be more concerned? I have sent a copy of my bank statements which show an average balance of £16-£20k/month so hoping this helps my cause!

Thanks!

amnblog

Both our original and most recent poster should be looking to their brokers with any queries.

They know the cases, we don't.

fairyloveheart

I can't see why you'd be referred on those figures and income!

We have been referred for 220k but have less income and more debt! We should hear today after a month so if we get approved then I'm sure you will!

Wales1783

My broker called me this afternoon. NW underwriters havent got around to fully reviewing it yet, however, they did tell her that it was because of a notice of correction that I added to my Barclaycard in 2007 (i still use this card). the NOC was to explain a late payment due to the bank not setting up the direct debit correctly when using their switching service which resulted in a late payment (2 days).

She doesn't seem to think that this will cause any issues as NW were only concerned with it relating to a default/ccj etc.

Hoping to have more of an update/approval tomorrow!

gillydee

Hi all,

Just an update on the situ, turns out there was no problem with my application. It sailed through- got my mortgage offer and am now a week from settlement! I live in Edinburgh and apparently the system was confused with my addresses as there is an odd way of numbering flats and it had to be manually checked. Broker says the missed payment wasn't a problem at all.

Wales1783, how did your application go?