Help

martin_a_2

£48,880 but why have they declined me

payless

guessing they (NW) are currently in a stronger position with regards to lower LTV...

saw a couple of cases with NW last year when they would not allow downsizing ( and mtg reduction) but stripping equity to pay off other loans -

they would not waive the erc if going elsewhere

as that was last year ( below 90%) would assume they are a lot tighter now-( esp if after 95%) you can appeal but of course once a decision is made.....

WHY- possibly they feel you have a "habit of spending above your income / debt " and the move will weaken their own position.

martin_a_2

i am paying off my product with equity and paying them 5% deposit of 10,250 as well, so i do not really understand why

payless

Is the £10K from existing equity or savings or other loan?

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can you afford not to move ... or are debts rolling up higher- you say £1500 pm is debt servicing, how much is outstanding on these other debts

minimike2

What is your loan to value at present? If its lower than 95% then they will see it as better security than the house you intend to buy.

_Andy_

Had a look on the Abbey affordability, they'd go up to £192k. Checked First National but that wouldn't be enough either. Think you'll struggle doing this to be honest.

martin_a_2

right gents.... I am on a fixed deal until august at which my mortgage would go up to £1400 per month. I am using equity to pay deposit and pay off one loan. my house I am selling is £245000 at which i owe 215000 to nw. house buying is 215000 less my 5% of 10,000. monthly i will be better off after the move as lower council tax etc and no work to do ..

_Andy_

Martin, once you pay off the 'one loan', what will your debt commitments be?
thanks

martin_a_2

about 2,200 but two loans will have been paid off. i have two months left on another account to pay.

luckyfool

The new mortgage is much higher risk for Nationwide as the equity in the property is alot lower.

Assuming you passed the First National credit score for 95%, they would consider the loan on an Interest Only basis. That's obviously not ideal though, and their rates are high.

Also, if you do get another lender do you have the funds to pay off any penalty to Nationwide? Do you have the ability to find another slightly cheaper property instead?