Nationwide Hell

Kathandjames

Hi All,
I am currently in mortgage hell with Nationwide. Bit of background...my sister and I are planning to buy a property for £180,000 for my mum and dad to live in - relative dependant mortgage. We have applied for a 5 year fix rate. Both my sister and I have our own residential mortgages and I have a buy to let mortgage.

We have had to provide so many documents for them - pay slips, three months bank statement showing income and outgoing buy to let, 6 months pay slips for my sister showing pension contributions, mortgage statements, 6 months bank statements for both of us, proof of deposit - the list is endless. I know this is all normal.

Valuation happening today. However, I phoned for an update this morning and have been told we have been referred to the "managed declined" team as the amount of my student loan wasn't declared on the original application!!! This is not the case as I declared my student loan. I asked them if they had reviewed the pay slip and they said no! My student loan is taken at source. They said it would be Friday for a decision on yes or no!

We passed the affordability with ease and they said we could borrow £344,000!!! We are asking to borrow no where near that. I didn't go through my mortgage broker as he was away at the time and we are under time pressure to complete! Since speaking to my mortgage broker he has done an affordability test with another lender on a single applicant - me! The other lender are prepared to lend me £267000 alone! I have absolutely no idea why Nationwide are being like this?!? My sister and I earn well in excess of £120k jointly a year! Apart from our other mortgages, my car loan and my sisters small amount of money on her credit card - she will pay this off, we don't have any other debt. The next problem I can foresee is the fact that the account that my money from the buy to let mortgage goes into is in my civil partners name- we are both on the mortgage and I have sent Nationwide our civil partnership certificate and a tenancy agreement! Completely ridiculous!

We need to push this one through as my dad is due to come out of hospital after being critically ill. We are buying the house for mum and dad to help him cope. Stressed and fed up! Any help gratefully received!

Pablosammy

Even on £120k between you, four mortgages would be a burden if interest rates went up and you had a void period on your BTL. Add a student loan (I assume you're paying well over £300 a month) and a car payment and it could all add up to a lot of credit which they might be worried about.

It's hard to tell without seeing more numbers though.

Kathandjames

Cheers for the unhelpful response! Why put me through a full credit check if they are going to decline on affordability at a later stage. Both our credit ratings are outstanding and both of us have partners with well paid full time jobs - they won't take that into consideration. After paying all mortgage payments by ourselves out of our salaries we would still have £2500 left over in terms of income.
Our mortgage broker said we were very comfortably within affordability!:mad::mad:

libf

Kathandjames wrote: »

Cheers for the unhelpful response! Why put me through a full credit check if they are going to decline on affordability at a later stage. Both our credit ratings are outstanding and both of us have partners with well paid full time jobs - they won't take that into consideration. After paying all mortgage payments by ourselves out of our salaries we would still have £2500 left over in terms of income.
Our mortgage broker said we were very comfortably within affordability!:mad::mad:

They credit check you to make sure that you don't have any debt problems, it would be stupid to just take your word for it. And they won't include your partners incomes because they're not going to be on the mortgage so won't be liable.

Nationwide don't 'need' to lend to you, so either follow their process or go elsewhere.

David_White

Why would they include your partners income when they have no obligation to pay the mortgage?

mrginge

Kathandjames wrote: »

Cheers for the unhelpful response!

are you as obnoxious generally or just towards people who go out of their way to respond to your questions?

Goldiegirl

I think the term 'managed decline' has spooked you.

If they were going to definitely decline you, they'd have done it already.

What they are doing, is refering the application to an underwriter, who will take a business decision on whether to proceed or not - for all you know, the answer could still be yes.

Try to remain calm, and see what the outcome of the referral is.

If it's positive, all well and good, if not, there are other lenders out there. If you need another lender, a broker would be able to help you find the right one.

People on this forum are trying to help you, but often the advice given is not what you want to hear. But it is honest advice - there's no point in just telling you what you want to hear.

jaxkesa

Kathandjames wrote: »

Cheers for the unhelpful response!

It will all be fine. Just tell them you 'need to push this one through' and they will throw the cash at you without doing any more affordibility checks even though you have existing mortgages, credit cards and car loans.

Is that more helpful?

Thrugelmir

Does your income alone support 3 mortgages and other commitments. That's where "affordability" may well be questioned.

Borrowers tend to take an optimistic view of the situation. Lenders a pessimistic view. For the obvious reason that they are stumping up the money and therefore carry the risk.