Nationwide Loan on Mortgage Calculator ' Not Fit for Purpose ' !

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    The Nationwide call centre won't be able to tell you anything specific.

    Lending is simply more cautious now than it used to be - so a mortgage you may have got some years ago may not be achieveable now.
  • boo_star
    boo_star Posts: 3,202 Forumite
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    pontiac_custom_catalina wrote: »
    As I said, I was paying the higher amount off comfortably and no, I'm not in debt up to the eyeballs.......quite the opposite as I'm old school and don't even have a credit card ! Luckily the mortgage is the only loan / debt I have. What irks me is that no one at Nationwide can offer an explanation as to why ? Is the ' affordability calculator ' some kind of secret ? I'd just like to know the reason !!

    Martin made a post and a partial campaign out of it.

    Yes, it is stupid that people remortgaging can be and are refused because their remortgage is considered "unaffordable" even when the payments are less.

    It's a silly EU rule that wasn't thought through before it was implemented, but in the short term there's not a lot you can do about it.
  • pontiac_custom_catalina
    pontiac_custom_catalina Posts: 4 Newbie
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    There was me thinking that over 6 years of loyalty to Nationwide with a 100% track record might actually mean something !
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    pontiac_custom_catalina wrote: »
    There was me thinking that over 6 years of loyalty to Nationwide with a 100% track record might actually mean something !

    Not if you can't meet affordability with the new MMR regulations.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    GingerBob wrote: »
    Common sense no longer prevails in some cases (like this one). That is the problem. We hear all the time of mortgage providers refusing a new deal on the grounds of affordability even when it would result in lower payments. Plain stupidity and incompetence on the part of the lenders.

    You do realise that no one has a god given right to credit....

    Mortgage lenders have to play by the rules and one of those rules is ensuring borrowers can afford the repayments if interest rates were to rise.

    Imagine the furore if the BoE base rate went up to 5% and borrowers could no longer keep up repayments. It would all be the lender's fault. They can't win.
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
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    Pixie5740 wrote: »
    You do realise that no one has a god given right to credit....

    Mortgage lenders have to play by the rules and one of those rules is ensuring borrowers can afford the repayments if interest rates were to rise.

    Imagine the furore if the BoE base rate went up to 5% and borrowers could no longer keep up repayments. It would all be the lender's fault. They can't win.


    So you think refusing a re-mortgage on the grounds of 'affordability' even when it would result is lower payments makes sense, do you?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    pontiac_custom_catalina wrote: »
    Earlier this year I changed my Nationwide mortgage product to another of theirs and saved £114 per month by switching.
    Now planning some home improvements, so I rang Nationwide to borrow £18,000 over the remaining 18 years of mortgage which would equate to less than £100 per month - less than my mortgage before - and I failed the affordability test !
    I have a 100% payment record, was paying it comfortably before the reduction and nothing else has changed. Nationwide could offer no explanation other than ' computer says no ! '

    Switching product requires no affordability checks. An increase in the amount borrowed will do. So far more involved than the computer simply saying no. The Mortgage Market Review changed the landscape permanently. I suspect you are basing affordability at current low interest rates not what they might be.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    pontiac_custom_catalina wrote: »
    There was me thinking that over 6 years of loyalty to Nationwide with a 100% track record might actually mean something !

    Absolutely nothing. I've shopped in Tesco's for over 40 years. Still don't give me any more discount.
  • pontiac_custom_catalina
    pontiac_custom_catalina Posts: 4 Newbie
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    As I said before, what I don't get is the lack of explanation when you don't ' pass ' their test ? Why not say it's a, b, c, etc ? They just leave you clueless . And as the mortgage makes up less than 25% of income and it's well within their LTV range ....... I'm at a loss. If the mortgage doubled I would still be able to afford it !
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    pontiac_custom_catalina wrote: »
    If the mortgage doubled I would still be able to afford it !

    Many borrowers say that. Lenders not unsurprisingly disagree once the full facts and circumstances are known.
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