Nationwide stress test

Wales1783

I am currently waiting on a decision from Nationwide for a mortgage application that went in yesterday. It took 4 days to get AIP due to a notice of correction on my flle. This was all cleared by the underwriter and the full application was submitted.

They have already carried out a hard search, my report has been reviewed by an underwriter already due to the NOC, and there was no issue. Will they reassess my affordability again?


As I am stressing about this I find myself constantly googling about the whole process, and I can across a stess test rate that Nationwide apply to your mortgage to see if you can still afford it. By my calculations this stress test of 6.99% would take my repayments up to £1800/month. I am applying for a 5 year fixed at £1,184/month currently.

My question is, do they apply this stress test early on in the affordability process, or does it come at a later stage? I can still afford this amount (by my calculations on my spending etc) but NW may not agree. My disposable income after all mortgage and credit agreeements would be approx £1,110/month at this stressed rate. However, I am getting conflicting information on what is an acceptable limit. At the rate I am applying for my residual income (before food, I don't pay any fuel/travel as it is covered by my job) is over £1,800/month, but I am convinced this isnt enough as Woolwich failed me on affordability (I didnt apply but input my details on their broker website. I was approx £65/month short.) Could I really lose a house over £60/month on a stressed mortgage rate? in 5 years time when I need to remortgage I will have had promotions/pay rises which would be far greater than £65/month!

They have already carried out a hard search, my report has been reviewed by an underwriter already due to the NOC, and there was no issue. Will they reassess my affordability again?

I am getting stressed beyond belief with this whole process now, and I can just see it all falling down at the last minute and losing my dream home for my family.

ACG

Go on the nationwide affordability calculator.
If it passes there then there is no reason to worry.

Wales1783

It passes fine and gives me about £40k more than I need to borrow. Just panicked by the stress test rate and if that's allowed for in there

ACG

It will be

Wales1783

Thanks. I hope so!

fairyloveheart

It will be fine. I think when the AIP is referred the underwriting is done before so they will have already looked at this for you.

Wales1783

Hope this is the case. I have heard so many conflicting things! My MB keeps telling me not to worry, but you read so many horror stories (particularly on the internet!) that it always makes me nervous!

If the underwriter has already looked at this, will they also review it again during the full application then? If so, what else are they looking for that they would not have already seen during the AIP refer?

looknohands

I'm waiting on my mortgage offer Wales, it's not fun, It's hard to stop worrying about it but the way I look at it is...

I'm not stupid, I wouldn't intentionally put myself into difficulty financially, the fact I've considered a mortgage means I believed myself that i could afford the product, obviously I'm no pro but that's a good start.

So then there's a broker, who is a pro and I've sent everything too and she has told me cool I can get you something it all looks fine. Remember your broker has done this job for years and has experience getting people mortgages all the time. If they didn't they wouldn't have a job!

Then at the end of it all is the underwriter, who is also a pro. Ultimately you have to respect their decision, if they actually told me I couldn't have a mortgage I would take that and take a longer look at why I can't afford it, I'd ask questions but I would realise maybe i was being over ambitious. If you get declined then at least you gave it a shot and you will likely know why you got turned down for the next time you apply.

I'd be interested in hearing the amount of declines by broker cases to the amount of declines by individual applications and i'd imagine it's more down to applicants dishonestly on declined broker cases? I don't believe a broker would take an application they didn't believe would succeed.

ACG

Stop reading the internet!
People complain about when they deem to have had a negative experience, they rarely do it for a positive experience. Added to that you are only reading their version of events which will proabbly marginally resemble the actual events.

I can only think of 1 case this year I applied for and did not go to offer and that was the lenders fault for giving me duff information. It is currently ongoing that and I have it with another lender where it looks more positive. Last year I think I had 2 (1 of which I managed to place this year). I have no idea how many cases I have done this year but its probably getting on for 40-50, so thats maybe 2%?

Stop reading other peoples stories, thats their circusmtances and not yours. If you go looking for bad experiences you will find them. I could give you 100 positive examples but it would make no difference as thats not you.

What will be will be, if you are applying to nationwide and they decline I imagine there are plenty of other places to go before you need to give up.

Wales1783

Thanks both. I know I should stop reading and fearing everything. It's always been my way though unfortunately!

As you say, what will be will be. I have been upfront and honest with my broker, she is confident all will be ok, and that's all I should focus on I suppose!

Fingers crossed I will get the decision either way by the end of the week and then move forward from there

Dandytf

ACG wrote: »

Stop reading the internet!
/QUOTE]

Love this quote, having been 'guilty' myself of creating problems before they arise;)