Nationwide - future earnings

Kai_63

I was made redundant a year ago and lived off (a healthy) redundancy package for most of this year while looking for a new role. I've secured a job that starts next month and I also have a remortgage coming up. I won't have payslips and/or earnings being paid into my account for this past year.

My broker said I could switch to Nationwide who would accept my contract. The rate is decent and no early repayment fee. But they also want 3 months' bank statements which will obviously show no earnings!

Meanwhile my current provider has a slightly lower rate but high early repayment charges and I'm hoping to move in with my partner in a new home within the next year.

How likely are Nationwide to decline me on the basis of bank statements and will that hamper applications in a year? I have an excellent credit score if that helps.

And would another option be to stay with my current provider and then port the mortgage to avoid charges in a year?

Any advice welcome!

sarah_diamond

Is it worth just letting it roll onto SVR for now and taking the small hit? That way, you're not fixing another remortgage rate.
That's what I did last year when my deal expired and I was in the process of selling and purchasing with my partner.

Kai_63

sarah_diamond said:

Is it worth just letting it roll onto SVR for now and taking the small hit? That way, you're not fixing another remortgage rate.
That's what I did last year when my deal expired and I was in the process of selling and purchasing with my partner.

Thank you. I did consider it but it's a pretty significant hit unfortunately (I was on an excellent fixed rate). 

ACG

On the application they will have put that you were unemployed. So they are presumably expecting to see £0 being paid in each month. Its unlikely to be an issue if your broker has checked everything.

lfc321

If it’s possible, taking out a new deal with your current lender and then porting when you move would seem to be the best plan in the circumstances ( no need for payslips etc, and you say the rate is better than nationwide). 

Kai_63

lfc321 said:

If it’s possible, taking out a new deal with your current lender and then porting when you move would seem to be the best plan in the circumstances ( no need for payslips etc, and you say the rate is better than nationwide). 

Thank you. Yes I do feel this might be better. While I have no reason to doubt what the broker is saying (that it should be fine) no one can say for certain until I actually try and I don't want to risk a hard search that leads to a decline really. 

I suppose porting mortgages does mean you don't get access to the best rates at that time but it's a necessary evil.

Hoenir

Nationwide wil attempt to verify your work income using an Experian service. Failing that , as seems to be the case, they are seeking alternative documentary proof. 

kingstreet

ACG said:

On the application they will have put that you were unemployed. So they are presumably expecting to see £0 being paid in each month. Its unlikely to be an issue if your broker has checked everything.

I agree.

I don't think this is an issue. It's easily explained and the Nationwide system asks for previous employment details for those with a new job start coming up.

The ERC-free tracker option ensures you can exit without penalty if you need to when buying again and it doesn't introduce the complication and cost of an ERC charged by your existing lender due to a rate switch if the lender doesn't like something about your later purchase application.

We have seen cases on here where lenders have refused a new application with a port due to the property, something in the applicant's history etc.