FTB: 2 mortgage applications close together?

TheGoldengoose

Hello everyone, first time poster, ling time lurker J I was looking for some advice about 2 separate mortgage applications in a short space of time?

FTB: found a property, offer accepted. LTV 60%. I’m an NHS worker, and my monthly income fluctuates. Contract is for 30hrs, however I do various extra hrs during the week.

I wanted to apply for a mortgage with Nationwide (due to the £500 cashback), however due to the pandemic they were not prepared to consider all of my extra hrs in the affordability calculation. I did get a DIP from Nationwide, and they still said they would give me the mortgage amount I required (actually £7,000 more than I needed). However as I’m a FTB, I am a bit anxious about the whole process, and was worried that the Nationwide mortgage offer would be lower than the DIP, due to some variable I hadn’t considered. (There is nothing I could think of that could go against me: Good credit scores, no debts etc… but as I said, I’m a natural worrier.)

Due to this, I approached another lender who would consider my extra hrs, and I have now received a mortgage offer! Now I have the security of this offer, I wanted to apply to Nationwide to see if they will loan me the required amount. I appreciate this would hammer my credit score, but would be happy to take this short term hit, and allow it to recover over time.

Just wondered what people’s thoughts on this? I appreciate it's not common practice. Is there any way a second application could jeopardise the mortgage offer I already have in place? Any advice would be greatly appreciated.

lonibra

It all sounds a bit unnecessary. I am not an MB but from what i know, how much Nationwide may give you is based on a calculator and is not a subjective matter so there isn't any need to actually apply just to see if they will lend you more.

Caracal

I'd just stick with the mortgage offer you have. Is it a formal offer or a DIP? 

If it's a DIP then it shouldn't have affected your credit search history anyway, as far as I know.

TheGoldengoose

Hi Caracat,

It is a formal offer (which I'm obviously super happy about). It's just if I now applied, and got an offer from Nationwide, I would be able to get the £500 cashback. Which as a FTB, would be handy as it would buy me some furniture! 

Caracal

TheGoldengoose said:

Hi Caracat,

It is a formal offer (which I'm obviously super happy about). It's just if I now applied, and got an offer from Nationwide, I would be able to get the £500 cashback. Which as a FTB, would be handy as it would buy me some furniture! 

Yes absolutely understand that! A few things to consider, then:

- If you apply to Nationwide now, how does that affect the timescale of your buying process/others in the chain?
- Have you spoken directly to Nationwide to ask them about your query?
- Have you formally accepted the offer with the other lender - and if not, how long until you need to accept it? 

Might be worth speaking to a MB to give you some advice...