Self employed home mover probs!

Happydays678

New to this forum so hope I’m doing it right! This is a long one too...apologies now!
So, husband and I have been home owners for 21 years. Last time we moved him (16 years ago) we were both employed. However soon after we moved house husband sent up his own ltd company which I joined around 3 years ago.
Business is successful and we have key worker status so will remain open in the event of future lockdowns. Problem is that we did furlough some staff and take out a bounce back loan as we were forced to shut during  first lock down.
We have sold our house and buyers looking to move in ASAP or withdraw.
We used a mortgage broker who got a DiP with Santander (he didn’t really explain why we didn’t try with Nationwide)  however they declined our app due to a small furlough Grant claimed incorrectly (less than £400) in March this year...we appealed explained the error and proof that it was paid back to hmrc but they still declined. 

Nationwide have now given us a dip (I approached them myself) and the broker has approached Bluestone who say that they are taking up SE mortgage apps but the fees and interest are very high in comparison to Nationwide and I feel it’s unfair that we should be penalised just because we’re self employed (credit history is fine)
we have a £230k deposit and are looking to borrow £299,200..the actual increase in monthly payments will be less than £200 as we’re extending our term until just before retirement.

We’ve found the house of our dreams which is quite unique...we don’t want to loose it. Our purchase is several weeks behind our house sell..
Options are we sell now and hope that as long standing customers of Nationwide they approve our application...if they don’t we are fairly confident that Blustone will but I resent using them and will only do as a last resort.
We can move into my parents home whilst we wait to complete on our new home but I am worried Nationwide will say no and then we’re taking another gamble on Bluestone.
Does anyone know how Nationwide are viewing SE home mover apps at the moment...? Will it make any difference that we have been with them for 21 years? 

Thanks in advance 😊

K_S

@happydays678 Santander was always a tough ask with the government assistantance taken as they automatically bucket you into the 'covid impacted' group.

There isn't enough info to say whether you stand a chance with Nationwide, but I simply don't see anything in your post which suggests a jump from the likes of Santander to Bluestone is warranted.

I would strongly recommend getting a second opinion from an experienced broker who can look at the whole scenario and place you with an appropriate lender. With ltd. co. directors who have taken covid assistance available to them, you want lenders who know how businesses work and can show some common sense.

If you are confident that the Nationwide DIP has been keyed in correctly, all pertinent information has been provided (govt covid assistance) and an underwriter has actually looked at it once referred, I guess that might be an option to consider. If not, do run the case past them in detail before making a full application and incurring any costs or an additional hard check.

Happydays678

Thanks for your response! I do wonder why we went down the Santander route initially??
I have a meeting the Nationwide mortgage advisor tmrw to go through the full
application so I hope to gauge some more info then. My ultimate fear is we sell out home and are unable to get a mortgage.”, we can stay with my parents but with house prices rising I can’t help but think that is a risky plan.
I’ll definitely look at getting a second opinion, thanks 🙏 

Petriix

Just be aware that Nationwide are glacial with an complex mortgage cases. It can take months of waiting, and every time they request something else you go to the back of the queue again.

lonibra

Your MB is having a laugh, find a better one. If your business is profitable and currently in business, you should be able to get a good product. The big banks can't show any nuance unfortunately but there are other banks who don't penalise borrowers because they have taken advantage of government schemes that they are legally entitled to.

MWT

Happydays678 said:

 Will it make any difference that we have been with them for 21 years? 

Thanks in advance 😊

I wouldn't expect any different treatment based on the time you’ve been with them.  

Either your application passes or fails on their current criteria.

Happydays678

Thanks all 😃, I don’t suppose anyone knows what info Nationwide are requesting? So far the only docs they’ve asked for is an accountants certificate, 3 months personal bank statements and some background info about industry, what impact covid has had in work and evidence of any government help..

MWT

There is a lot of information about what they need on their intermediaries website..

https://www.nationwide-intermediary.co.uk/

Also, if your current mortgage is with Nationwide they do have a little wiggle room if you are very close but not quite making it on the current criteria according to that site...