Nationwide won't accept my income!!

Bonusbear

Hi,

I've been trying to remortgage with Nationwide for nearly two months, they lost my paperwork 3 times and have made lots of mistakes.

They agreed a remortgage of £150,000 in principle. Then, as I couldn't provide the latest paperwork they took of my child tax credits payments (worth £3,000 per year) and this came down to £138,000 - which I could just about cover.

Now, they've taking away an income of £5,500 - they mistakenly thought it was a maintenance payment, it's not we rent out a room and it's from our lodger. They are saying they can't accept this. I pointed out it was legitimate income and has been declared to the tax office and I've paid tax on it but they won't budge.

End result: they can only offer me a mortgage of £98,200 which just isn't enough. What kind of crazy multiplier are they using that less income of £5,500 equates to losing nearly £40,000...???!!!

Has anyone got any advice or help? - it's a great rate and I really don't want to lose it as it would save me £650 per month.

I'm in a perverse situation where I need to earn more to pay less - I pointed this out to them, that actually this mortgage was more affordable than my current one but they still wouldn't budge.

Also, does anyone have the email address of the head of mortgages at Nationwide, I'd like to contact them directly.

I've already paid £1000 for this and have got nowhere.

Thanks in advance

GMS

If you told them the £5,500 income was from a lodger and they mistook it for maintenance then ask for a refund of fees.

If you presented the income incorrectly then it is not their fault.

Tax credit income requires latest notice. You can call tax credits and request this if you have not got the latest one to hand.

Complaining to them won't help. You are outside of lending policy.

HappyMJ

Bonusbear wrote: »

Hi,

I've been trying to remortgage with Nationwide for nearly two months, they lost my paperwork 3 times and have made lots of mistakes.

They agreed a remortgage of £150,000 in principle. Then, as I couldn't provide the latest paperwork they took of my child tax credits payments (worth £3,000 per year) and this came down to £138,000 - which I could just about cover.

Now, they've taking away an income of £5,500 - they mistakenly thought it was a maintenance payment, it's not we rent out a room and it's from our lodger. They are saying they can't accept this. I pointed out it was legitimate income and has been declared to the tax office and I've paid tax on it but they won't budge.

End result: they can only offer me a mortgage of £98,200 which just isn't enough. What kind of crazy multiplier are they using that less income of £5,500 equates to losing nearly £40,000...???!!!

Has anyone got any advice or help? - it's a great rate and I really don't want to lose it as it would save me £650 per month.

I'm in a perverse situation where I need to earn more to pay less - I pointed this out to them, that actually this mortgage was more affordable than my current one but they still wouldn't budge.

Also, does anyone have the email address of the head of mortgages at Nationwide, I'd like to contact them directly.

I've already paid £1000 for this and have got nowhere.

Thanks in advance

They don't use a multiplier any more. They do an affordability calculation. They figure out how much you have left after you've paid your essential living costs then figure out how much of a mortgage you can get with that.

I would provide the bills again and say your share is split with the lodger if you are single with no children split it 50/50 and if you have a partner or a child/children split it fairly depending on number of occupiers. That should increase your available income to service a mortgage without being able to use the lodgers rent payments as income. Explain that if the lodger is not there the bills would be proportionally lower and the lower amount should be accepted.. i.e your council tax would be 25% less.

stephenni1971

I'm amazed that on a £140k mortgage you can save £650 per month by remortgaging.

What is your current repayment on the loan and what would it be on the original NW figures?

Bonusbear

Hi All,

Firstly you can't call tax credits - you're just put on hold for 45 mins and then the line goes dead, it's a total shambles. I've tried writing to them twice........

Affordability - don't remember filling in much about that (tbh it was a couple of months ago). We're self employed so maybe the details are slightly different.

Current payment on the loan is £697 but this is an old interest only mortgage on £176,500. Every month I put £770 into a savings account to pay off the loan. I only need to borrown £150,000 as I've saved a lump sum of £26,500 to pay off the original as well, so I easily save £650 on the original deal.

Nobody's answered my question about being able to declare the lodger income. I live in London so ironically this is the most stable income of the whole lot - it's very easy to get lodgers as we live in a great place and I charge a low rent.

kingstreet

It's in the criteria;-

UNACCEPTABLE INCOME

Expenses
Mileage / Fuel Allowance
First Aid
Broadband and Phone Allowance
Shadow Pay
Educational Grants / Bursaries
Teaching and Learning Responsibility 3 (TLR) payments
Housing Benefit
Foreign Currency
Jobseeker's Allowance
Income Support
Income from lodgers
Third jobs
Income from casual employment
Bereavement Allowance
Guardians Allowance

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/income#acceptable_income

densol_2

Bonusbear wrote: »

Hi All,

Firstly you can't call tax credits - you're just put on hold for 45 mins and then the line goes dead, it's a total shambles. I've tried writing to them twice........

Affordability - don't remember filling in much about that (tbh it was a couple of months ago). We're self employed so maybe the details are slightly different.

Current payment on the loan is £697 but this is an old interest only mortgage on £176,500. Every month I put £770 into a savings account to pay off the loan. I only need to borrown £150,000 as I've saved a lump sum of £26,500 to pay off the original as well, so I easily save £650 on the original deal.

Nobody's answered my question about being able to declare the lodger income. I live in London so ironically this is the most stable income of the whole lot - it's very easy to get lodgers as we live in a great place and I charge a low rent.

Yeah you can call the helpline. I'm usually calling them every two weeks ( I've a complicated situation ) sometimes I've got straight through - sometimes I've waited half an hour. Try 7.45am

stephenni1971

You have made an application which will never be approved.

The obtain the AIP you would have been asked for your income and it's source. To have been accepted you could not have been accurate with your information as it's clear that income you have falls outside their criteria.

Nationwide have done absolutely nothing wrong so you have nothing to complain about.

csgohan4

Broker maybe can help, since your self employed, SA302 e,t,c.

amnblog

Bonusbear wrote: »

it's a great rate and I really don't want to lose it.

I've already paid £1000 for this and have got nowhere.

The rate is irrelevant if you cannot get the lending. Perhaps Nationwide is just not the Lender for you.


How can you have paid £1,000?

Motorsportfanatic

Hi,


I had major problems with Nationwide when transferring a joint mortgage in to my sole name. They offered a mortgage in principle, subject to a sum paid off, which I duly did. They then advised me that a further substantial four figure sum would need to be paid off before they could offer me a second mortgage in principle but couldn't tell me why I needed to pay another chunk off the mortgage. They refused to allow for income which is currently being received, on the basis that it will not continue, but also refused to take future maintenance payments in to consideration.


My advice would be to contact the head office, ask to speak to the complaints department, and follow everything up in writing.


In my case, Nationwide backed down. It took a lot of time and they weren't able to explain why the system had done what it did but complaining about it 'saved' me having to pay off another substantial lump sum.