First Time Buyer with Nationwide

g_e_c_k_o_g_i_rl

Hi all,

I'm a first time buyer, and currently going through the process of getting a mortgage with Nationwide. Back in January my mortgage advisor obtained a DiP with them for £185,000, based on the addition of the small amount of overtime I do each month.

Since then I've found a house that I've had an offer accepted for. I'm putting in a £40,000 deposit, so the house is top end of my budget at £225,000.

Everything was hunky dory until I submitted my January payslip - herein lies the problem: My employer recently changed HR providers (November 18) and as well as part of this change involving paperless payslips (don't even get me started on how hard it is to actually get one printed due to the complexity of the computer program we now have to use to access them) they have also changed the way they word flat rate overtime on my payslip. I get flat rate overtime in addition to my salary for working public holidays, in this instance I worked Christmas Day and Boxing Day. Knowing this, and having a holiday booked in early December, I did not do any other additional hours that month as my money would equal out when working these public holiday shifts.

My overtime is always paid a month behind (Novembers overtime being in Decembers payslip, December's overtime being in Januarys and so on) and didn't think much of my Christmas overtime payment being listed as 'Plain Time Public Holiday' instead of 'Plain OT' but Nationwide do not like it one bit and are refusing the accept that this payment is for overtime - despite my advisor forwarding them emails from the HR department stating that this is the case. The mortgage application has now gone to appeal and Nationwide are certainly taking their time reviewing this.

I know it's quite a specific problem, but has anyone had an issue like this with them before? With any sort of documents?

My mortgage advisor is quite optimistic and says that we'll get there, but being anxious by nature I can't help but feel like this is going to completely screw me over! Has anyone got any words of advice? Or any suggestions as to anything I can do to prove myself worthy of Nationwides mortgage??!


Many thanks in advance

Exodi

I can see it from Nationwide's side, working overtime indicates you're working more hours than you're obliged to. Working the same hours (but some being bank holidays), whilst meaning you get extra money, indicates you're working the same hours you're obliged to and they'd decide whether they'd expect you to do this going forward.

But nonetheless, it's all irrelevant. I don't hear too much success in general with appealing mortgage decisions (it's their money after all) so you may eventually need to find another lender.

That said, I share your mortgage advisors optimism, they should make sure you're guided in the right direction, whether with nationwide or another lender - it's in their interests to get you a mortgage.

What is your pay? It sounds like affordability is tight?

g_e_c_k_o_g_i_rl

Thanks for your reply!

I totally understand what you mean, I hadn't looked at it like this before but now you've pointed it out that makes a lot of sense.

I don't understand if my mortgage advisor is appealing the decision as a whole or the rejection of that particular document, I don't even know if that's possible? We've spoken about different lenders and he's said that he wants to see this through first and is optimistic we'll get a good result, but whether it's a good result with this mortgage company or with another I'm not sure! I email him a lot and have started to feel like a pest so promised him I'd try to be more patient and await their response!! My concern is that I'm going away to America on Sunday for 2 weeks, and the rate at which they've wanted documents thus far as I'll not be able to access anything from the states! I've also heard such terrible things said about Nationwides efficiency in looking at paperwork and others having to email almost every other day to chase things up.

Affordability would be fairly tight, my salary is just under £29,000, I get an additional garunteed shift pay on top of £5,000 and then make the rest up to 40k by doing overtime. The monthly repayments for this mortgage are £665 a month, which is more than affordable, even without overtime as a flat month sees me take £2100 home. I've opened myself up to accepting any term length, as I'm 29 now so if needed or offered could take out a mortgage over 40 years and have mentioned this to my advisor. He's currently pushing for 30 years. Is there anything else you think I could do?

Exodi

To tackle your points in order, your application will have been declined on affordability and he'll be challenging that due to your circumstances. He will obviously want to be sure Nationwide would be unwilling to lend, and if they've already performed a credit check on you, each subsequent lender will be more difficult to convince.

Oddly enough, I was in your situation a month ago in the sense of that I was applying for a mortgage with Nationwide through a broker and was going to America for a week! I scanned and saved everything (6 months of payslips, 6 months of bank statements for each account, P60, etc) on to a memory stick and took it with me. I only sent what was requested but I didn't have to worry about document requests.

I'm not sure about these terrible things you've heard about Nationwide, as a poster said just this week, people only leave reviews when things go badly. My experience with Nationwide was quick and efficient (albeit the valuation was booked two weeks after I submitted my application but I appreciate this isn't their fault). In fact you can find peoples time frames here: https://forums.moneysavingexpert.com/discussion/5685963/the-new-waiting-to-exchange-thread&page=245#topofpage

The 1-2 weeks you'll wait for an offer is also completely dwarfed by the fact you'll then have to wait 1-6 months for the solicitor!

A 40 year term seems fine, you can overpay 10% of the original balance fee free every year so you could artificially make it a 25 year term regardless (and you could do this officially when you come to remortgage). I'd be interested why your broker is keen on doing a 30 year term but I'm sure he has his reasons.

Your figures do worry me somewhat in regards to affordability but your broker will be far better placed to know what you can borrow than I, as said, they make money from getting you a mortgage so will not waste yours and their time if they think you won't get it.

EDIT: Good luck. In regards to what you can do: BE PATIENT. I know it's hard, especially as a first time buyer, but hounding the advisor & lender day and night doesn't speed anything up, these things take time and as I hinted earlier, you're about to come to the starting realisation that the two weeks you have to wait for your mortgage is a drop in the ocean compared to how long your solicitor will take.

g_e_c_k_o_g_i_rl

Thank you again for replying so quickly!

And Thankyou for filling me in on what may be happening too! I'm clueless with all of this.

I have got and have had to provide a lot of documents so far, 4 years of p60s, March payslips and documents from HMRC stating my earnings and the breakdown alongside emails from HR stating the change in how this line shows on the payslip, so hopefully it'll be enough to make a decision. If not, I've got a lot scanned to my phone (I've scanned every letter I've had through about my finances!) so I'm just hoping it's enough!

Being a first time buyer, I was surprised when the DiP came back! I was anticipating having to buy something that needed work, to do up, sell and then finally buy something I'd call home - however the DiP eliminated this thought (if you know Eastbourne at all you'll know that puts me in good stead as even though its still expensive Sussex, it's a lot more affordable than the rest of the county) I'll just have to keep my fingers crossed.

Something my friends mother asked me the other day, which got me thinking - could there be any hesitation because I am a 29 year old female with no children...? Like could they be erring on the side of caution because they're expecting me to spontaneously combust with children as soon as its approved or something?! I've filled in forms saying I have no plans to have children so I'd be hoping not...

Thankyou for all the advice you've given me so far and thanks for the link, and as you said - people DO only write when bad things happen, so I guess I need to steer clear until I have an answer!

amnblog

It is the job of the Broker to resolve complications like this.

Let him him/her worry about it.