Declined decision in principle with Nationwide

DrMic

Hi there. My partner and I have had an offer accepted to buy our first house and are going to apply for a 95% LTV mortgage with Nationwide. We’ve already got an AIP with Halifax but they’re not offering 95% mortgages at the moment due to COVID crisis. We decided to go through the application for an AIP with Nationwide but this was declined with ‘we’re unable to offer the amount requested’. We find this very strange as we haven’t been furloughed, my credit score is excellent and my partner’s is good. We earn about 59k per year between the two of us and can definitely afford to repay back the capital and interest we requested. Do you know why this might be? We did our application at 6pm on a Saturday - might it be that with the bank not being opened applications are declined by default? Are we better off reaching out to a broker? Thanks all 

Grumpy_chap

Are Nationwide doing high LTV?
What salary multiple are you seeking?

Carl2510

Should definitely go with a broker they will know what lender is best for you. Do not apply for anymore until you speak to one.

GoingOn30

I guess it's a particularly risk time to be applying for a 95% mortgage when house prices are broadly forecast to fall in the short term. Would you be able to get up to a 10% deposit to give yourselves more chance of being accepted? You could also ask your seller to consider a reduction on the price you agreed. 

LRmortgage

Did you just do the AIP or did you check the nationwide affordability calculator first? 

Every lender tests affordability slightl differently, so what Halifax may allow, nationwide may not. 

Especially at the moment, certain lenders are not allowing some elements of pay, for example commission or overtime. 

95% LTV mortgages are always scored the hardest as the risk to the lender is so great. 

At the moment, there are very few 95% products available, although we are hoping they will soon return to the market. I would suggest rather than scatter gunning too many lenders, you speak with a broker who may be able to help, especially once more 95% products are available in the market. 

madyaker

I’m just looking to get a mortgage on my own following the breakdown of my marriage and spoke to Nationwide yesterday. My current mortgage is with them but they could only offer around £75k.  I already have an AIP from L&C for £95k So that was a bit of a shock. The advisor who was lovely and seemed very knowledgable said that as they were a building society rather than a bank they were muck stricter with who they lent to. I’m obviously not as desirable now as I used to be.   

Thrugelmir

Given the current economic climate lenders will be looking for more equity to be injected to provide a buffer. Nothing personal. This is all macro related to the perceived weakness in both the jobs and housing markets. .