Our Nationwide DIP

Strummer22 · 14 April 2017 at 9:17AM

Having applied for a DIP with Nationwide, and given our broker the latest outstanding balances on our credit card, NW declined our DIP as the outstanding credit they saw on our file was 'significantly' more than on the application. But we didn't know which credit agency they used or the exact figure they'd have seen - we've been paying down our debt, and as lenders take a little while to update the credit agencies, we only had a vague idea of the max figure they would've seen.

NW told our broker they go by exactly what's on the credit file, and any additional credit that won't be paid off before completion gets factored into the affordability calculation. Because NW ask how much will be paid off, rather than how much will remain, this scuppered our original application.

Anyway, I asked our broker to resubmit as per our situation a month ago, i.e. about £1000 more credit card debt, but we'll pay off an extra £1000 before completion (which, in reality, we've already done). Approved! But still a smidge squeaky on affordability.

Just a cautionary tale really for anyone who has CC debt they intend to pay off before completion; you might get declined if you submit your debt now, rather than what it was weeks/a month ago that'll show up on your file when the lender does a credit check. Dunno if any lenders other than NW are so picky.

Summer12 · 14 April 2017 at 12:15PM

Thanks for sharing this, we've paid all our debt off a few days ago so are now sitting tight waiting for things to refresh on the credit report. I think they use Call credit but it does seem quite how amazing different credit agencies can show different things, you'd think they'd all be the same.

kingstreet · 14 April 2017 at 4:27PM

Nationwide has been Call Credit and Equifax since 7 March.

jlaw4 · 14 April 2017 at 7:03PM

Thanks for this as this is the dilemma i've found myself in! We are paying off a large credit card in the coming weeks but have declared it for now but our others that are staying we have declared higher and are actually much lower on our files! No idea what will happen when we get to full application stage as DIP was approved...

henrypootle · 19 April 2017 at 1:02PM

We've just had a DIP directly with Nationwide - they wanted know current balance on credit cards etc and also what the highest balance has been within the last 6 weeks. Don't know if that helps.