Nationwide further advance refusal

lucky_mum_2

I hope someone can give advice. We requested a further advance from Nationwide for a new kitchen but have been turned down. According to affordability we can borrow three times the amount we need and we have 50% LTV. We have very well paid jobs been employed for 18 years and have excellent pensions. I have a small car loan but nothing else. My husband did just consolidate his credit cards and loan that he paid for a car on but it’s halved his monthly payment and paid everything off. So we now have a car loan each and no other debt. We have a few thousand in savings and two cars worth a lot more than our car loans. 

Nationwide stated we had a consolidation mortgage 3 years ago to pay off house renovations and have just taken on more debt so they won’t lend. We have not taken on more debt we have just consolidated. 

We always buy houses that are a bit of a wreck and have spent 7 years doing the latest one up, we are on the final hurdle and our forever house will be done. 

My broker could not apply for us as nationwide do not allow for further advance but he is very shocked they said no. 

Do you think Nationwide are being over cautious and we should wait a few months? Anything we can do to help when we re apply? We could pay off one of our car loans as have some savings or extend our years to pay the mortgage. Any help would be appreciated. 

We have this mortgage on a fixed 5yr at 1.34% and will cost a fortune to leave and go to another lender.

lucky_mum_2

Just to add, we have never missed a payment in our lives ever and have nothing on our credit reports. 

jamielutz1987

@lucky_mum_2 Unfortunately, going by the other Nationwide further advance threads on the forum, it looks like Nationwide are quite conservative in their approach to deciding on requests for additional borrowing.

There's always an element of subjectivity to it as they need to ensure that are meeting regulations. The exact approach and internal guidance will differ from lender to lender.

If urgent, you could look at personal loans or second charge, though both are likely to be more expensive than a further advance from Nationwide.

If you're not in a hurry, then bringing down other debt over the next few months may help a future application.

Is there much longer to go for the 5 year fix to be up?

Thrugelmir

From the lenders perspective. Rather than using the consolidation exercise to speed up repayment of the debt you owe. You are using the freed up monthly outgoing to borrow yet more. Use the next few months to get yourselves into a better position financially.  

lucky_mum_2

jamielutz1987 said:

@lucky_mum_2 Unfortunately, going by the other Nationwide further advance threads on the forum, it looks like Nationwide are quite conservative in their approach to deciding on requests for additional borrowing.

There's always an element of subjectivity to it as they need to ensure that are meeting regulations. The exact approach and internal guidance will differ from lender to lender.

If urgent, you could look at personal loans or second charge, though both are likely to be more expensive than a further advance from Nationwide.

If you're not in a hurry, then bringing down other debt over the next few months may help a future application.

Is there much longer to go for the 5 year fix to be up?

Thanks for the quick reply

We only signed up for the 5 yr fixed in March! Excellent rates and because of covid we did not request a further advance as the systems literally shut down for a few weeks, it was a nightmare just changing product. 

We are going to appeal and if not will just have to wait and apply next year and make sure we have no outstanding loans. The Kitchen renovation is 50k as includes building work so not an option for a loan. It’s just annoying as we are very careful with our money and thought we’re doing all the right things. We do have 50k in 0% credit cards available to us but don’t want to go down that route. 

lucky_mum_2

Thrugelmir said:

From the lenders perspective. Rather than using the consolidation exercise to speed up repayment of the debt you owe. You are using the freed up monthly outgoing to borrow yet more. Use the next few months to get yourselves into a better position financially.  

I can see that but our affordability is not a problem, even if we had not consolidated we would of been able to borrow more than enough and wanted everything in one place, should not of consolidated but I had no idea it would cause a problem. Will use the next few months to overpay as much as I can.

Nationwide did say we have taken on more debt as a reason for the decline and our credit cards are still on our credit report so not sure if they realise we have paid everything off. Our debt has actually reduced significantly this year. 

haras_n0sirrah

I have just had a clients port and borrowing more when porting declined by nationwide because they took the payment holiday - they are ultra conservative