Potential Nationwide FTB Mortgage Application

HopefulFTB

Hello All,

Myself and my partner currently rent and have a baby together. We are looking to buy, and have found a property. My income is £22k, my partners is £7917 and we recieve £1076 child benefit. Were looking at a purchase price of £150k and can comfortably afford a deposit of 5%.

After doing affordability checks and lots of research, Nationwide seem to be our best hope with 95% ltv products. As far as I can tell, lenders offering products backed by the Help to Buy Mortgage Guarantee are only able to offer a maximum of 4.5 times income which was imposed by the government in the last couple of years. Now, it looks like Nationwide products are not backed by the Help to Buy scheme l, they just offer their own 95% ltv products. Can anyone confirm this is still the case?

I know that lenders assess affordability and no longer work on just income multipliers. We live very simple lives. Our only out goings are standard household bills, insurances, fuel etc. The only loan that I have ever had was a £700 4 year plan to DFS purely for the purpose of showing regular payments. I paid the outstanding £380 of this out of savings last month to get rid of the monthly payment. I have a Santander 123 credit card in my name for the cashback which is cleared every month. We both have £25 per month mobile contracts, very rarely eat out or have nights out etc (I don't think we're as boring as we sound)

We live life the way we want to and enjoy ourselves. After bills, rent, food, fuel and general bits and bobs are accounted for each month, we save around £600 comfortably each month.

When I put the figure's into Nationwides affordability calculator, it gives a figure of £147200 over 35 years which is 4.75 times our income which I understand is their cap.

I've kept regular checks on our credit reports, we're on the electoral roll and have been for years. We have a £1100 available overdraft on our joint account which is never used and the account has never had less than about £4000 in it. Santander stuck it on their when we opened the account.

A few questions:

Does anyone know if Nationwide are happy to lend up to the figure produced by their affordability calculator (assuming everything else about the applicant is spot on) even with just a 5% deposit? Or does the calculator assume a higher deposit?

How accurate is Nationwide affordability calculator against what they will actually lend?

If there are any brokers/underwriters out there who are able to offer any guidance before we apply that would be great.

Apologies if I've rambled on and I appreciate any help/info that people can offer. Thanks

katebl

Hi Hopeful, I'm not a broker but a fellow FTB, and just wanted to let you know that if you haven't gone beyond the calculator and actually tried to process an application for an AIP, you may find that if you did they will decline it based on it being not within their lending requirements - we had something similar come up, and later got an AIP elsewhere.

I am not sure but I believe in order to benefit from their 95% mortgages you need to have held a help to buy ISA with them or one of their save to buy accounts for three months before you will be considered - at least that's how I interpreted it.

Newbiebuyer2016

If you can comfortably afford 5% deposit can you add a bit more too it?

If you save £1200 a month then you could probably get a bigger deposit to put yourself in a better position?

We got 95% mortgage with Leeds.