Nationwide Further Advance help

Rugby10

Hi, first time poster here and wondered if a clever mortgage guru could help me out. Here are my circumstances,
Would like to borrow 30k for a bungalow loft conversion
I earn 35k inc small bonus
Partner is self employed earning 10k a year, pays no tax and as competent in books has no need for an accountant.

All sole, joint, savings accounts are with Nationwide.
Nationwide calculator says I can borrow as a sole applicant up to 42k as no cc or loans but 1 child. I don't want to bother with a joint app as they need chartered accountant for self employed and as I can borrow what we need as sole applicant thought it will be easier.
My question is, will they allow me to do this with our main mortgage being joint (105k)?
If I do a joint app with partner earning zero it only allows me to borrow 12.5k. If I joint app with 10k earnings for my partner it's more like 70k!
We manage to save £450 each month which they would see with the 30k further advance increasing our payment by £166 so easily affordable and on 10 year fixed too. Help!

amnblog

Where did you get the idea your Partner needs. Chartered Accountant for their income to be considered. That is not the case.

They do not to be submitting self assessment returns. Income is then accredited by HMRC via SA302s.

Rugby10

Thanks for your reply, I thought I remembered that being the case when we got our first mortgage back in 2006 when she did have certified accounts. In regards to my original question could I apply solely?

amnblog

You can apply based on your income alone. Don't know if you will make affordability on your income alone though (even though your experiments with the affordability calculator suggest you will).

cahillg81

When you put in your income only how did you key it?


You can't use a broker for additional borrowing with Nationwide but you should speak to an advisor there.


I suspect you have keyed your partner as not employed and this is treating her as a dependent, if you key as self employed and select less than 2 years this should nullify the income but not treat her as dependent.


Indeed if she has SA302's get them alongside the previous years tax year overview and use the income it should be much easier.

And if the kid us under 13 use the Child Benefit.

pollyanna24

Don't know about the applying by yourself bit, but in response to the person who said that you mightn't pass affordability.

I borrowed more with Nationwide earlier this year to buy my brother out.

The existing mortgage was £105K (same as yours) and I was borrowing an extra £95K. I earn £40K.

cahillg81

pollyanna24 wrote: »

Don't know about the applying by yourself bit, but in response to the person who said that you mightn't pass affordability.

I borrowed more with Nationwide earlier this year to buy my brother out.

The existing mortgage was £105K (same as yours) and I was borrowing an extra £95K. I earn £40K.

Were you paying the mortgage on your own before buying your brother out? I suspect you done an internal re-mortgage (to transfer the equity) with the additional borrowing as part of that. The calculator for a further advance is tighter.

pollyanna24

It was a fairly long, drawn out process due to the computers at Nationwide, but I was paying the mortgage with my brother up til the day when it all went into my name.

It was me taking on the existing mortgage by myself, with a further advance of £95,000.

At first, the computers were finding it very difficult to take on more than the fact that the existing mortgage was going to be taken on by just me. Everything had to be done manually down to a glitch.

But the end result is that I took on additional borrowing and a total mortgage of £200,000 (well, two mortgages, as they each have different rates and end dates) which I suppose is what the bank is mainly looking at (i.e. the total amount they are willing to lend you).

Thrugelmir

There's a difference between £105k and £200k of existing borrowing. Another £30k is pushing the boundaries if it's the latter.