Remortgage to Nationwide questions

mwarby

I'm currently with Skipton, my fix ends in June but I'm looking at options with recent new re interest rates. 

I have a DIP from Nationwide (pre the rise a couple of days ago), done online. 

- have I reserved a product ? I thought I had but spoke to helpline and they thought it didn't reserve rates

- what happens if the value I gave isn't achieved in valuation, my LTV is down as 56% but it could reduce to 63% if valuation changes by £10k (which it could, especially with recent news) , would I be offered the rate for 63% at time I reserved, or whatever the new rate is for 63% ?
- I'm sure online it said it reserved for 90 days, but says the next stage needs to be done in 180 days. I'm looking to hedge my bets so to speak, as if things calm down in coming weeks or months I maybe better switing to new deal with Skipton (saves £1k early repayment charge, and all the paperwork of moving etc)

Thanks in advance to anyone who can offer any additional insight 

K_S

@mwarby I can only speak for the intermediary process. With this, you can reserve a specific product for 90 days (by the end of which a full offer must have been produced) at the DIP stage.

mwarby said:

I'm currently with Skipton, my fix ends in June but I'm looking at options with recent new re interest rates. 

I have a DIP from Nationwide (pre the rise a couple of days ago), done online. 

- have I reserved a product ? I thought I had but spoke to helpline and they thought it didn't reserve rates

mwarby

Thanks for responding 

This is what my application/DIP says

1. Tell us what you need

Mortgage amount: removed

Property value: removed

2. Select a mortgage

You have selected:

10 Year Fixed

£removed

4.24%

Monthly payment

No fee

10 year term

Free standard legal fees

3. Enter your personal details

You've now completed this section

Identity confirmed

Verified income

Checked mortgage is affordable

4. Final review

After reviewing your documents, we're delighted to offer you a mortgage. Please remember you've only 180 days to confirm your offer. You still need to:

Read your mortgage offer

Read our important information statement

Pay product fee (if applicable)

Complete your Direct Debit

Read and accept your mortgage declaration

Verify your email

Not sure if that's DIP or offer, they've had a wageslip but nothing else

K_S

@mwarby Looks like an offer to me, with a validity of 180 days from issue until which time the rate is secured. Like other mainstream lenders, Nationwide don't always require documents to verify application information as they can verify a lot using the information and sources they already have access to.

mwarby

Ok great thanks, is it likely that Nationwide have done some sort of Desktop Valuation already and decided it's an acceptable risk, or is that something they access at next stage

My concern is that it's a nice option to have, but not worth much if it can all get invalidated over £5/10k difference in valuation. Of course I know with current volatility that nothing is absolutely certain 

K_S

mwarby said:

Ok great thanks, is it likely that Nationwide have done some sort of Desktop Valuation already and decided it's an acceptable risk, or is that something they access at next stage

My concern is that it's a nice option to have, but not worth much if it can all get invalidated over £5/10k difference in valuation. Of course I know with current volatility that nothing is absolutely certain 

@mwarby A mortgage offer would not be issued without some form of valuation (physical / desktop / drive-by). Recently, most of my mainstream low LTV like-for-like re-mortgages for houses have happened on an automated basis, so I would expect that is what has happened here as well.

Just to be clear, I don't know if there are any direct-application specific quirks that I'm unaware of, all my comments are in the context of my experience processing intermediary applications.

mwarby

Thanks so much for your help.

I think what I'll do is sit tight until January, see what Skipton offer, then look at Nationwide and see what's preferable