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  • FIRST POST
    • Alarae
    • By Alarae 7th Jan 18, 11:19 AM
    • 325Posts
    • 334Thanks
    Alarae
    Nationwide DIP - Will they tell you highest amount to borrow?
    • #1
    • 7th Jan 18, 11:19 AM
    Nationwide DIP - Will they tell you highest amount to borrow? 7th Jan 18 at 11:19 AM
    Excuse my lack of knowledge, it's our first time selling a house and the DIP process last time was relatively straight forward.

    We will be looking to move this year, however will need to port our mortgage and borrow more with Nationwide due to being in a fixed term.

    One thing I cannot ascertain is if Nationwide will let us know the highest amount we can borrow- our last DIP with them was simply for how much I applied for. I think we will be just short on affordability by ~2000 however I would still like the maximum we could borrow. If for instance I applied for a DIP for 280,000 and they would only approve us for 278,000, would they come back with an approved DIP for 278,000 or a simple straight decline?

    I've done the nationwide intermediaries calculator and seen what they will lend us, so in theory know the maximum according to that, but I don't want to apply for a DIP for 275 if they would have approved at 278.

    I also know we shouldn't stretch ourselves and affordability is there for a reason but we can quite comfortably afford the increased repayments without hardship (would be an extra 275 per month, disposable income is ~1,600).
Page 1
    • ACG
    • By ACG 7th Jan 18, 11:22 AM
    • 17,045 Posts
    • 8,932 Thanks
    ACG
    • #2
    • 7th Jan 18, 11:22 AM
    • #2
    • 7th Jan 18, 11:22 AM
    The calculator is as reliable as the information entered.

    Providing you enter everything correctly as they would expect (ie commissions/overtime/bonuses for example might not be the full amount), then the figure on the calculator will provide the figure they will lend you to the pound.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Alarae
    • By Alarae 7th Jan 18, 11:48 AM
    • 325 Posts
    • 334 Thanks
    Alarae
    • #3
    • 7th Jan 18, 11:48 AM
    • #3
    • 7th Jan 18, 11:48 AM
    Thank you for your help.

    So I should just apply (rounded down slightly) for the calculator amount.

    Do you happen to know if I will have any success with Nationwide to consider this year's income to date on a zero hour second job? I've read the guidance that they will use the lower of the last p60 or the annualised earnings, however it will severely damage our affordability as my P60 only covers October-March, whereas to date in this tax year I have already earned over double of that P60 as I have been working since the beginning of the tax year.

    Just feels that I am being disadvantaged otherwise because I won't be considered for a full year income on my second job

    Am I best to speak with Nationwide instead of doing an online DIP? Technically there is no guidance on the normal website about second job earnings so not sure if I can put in earnings to date or not (being hopeful here).
    • ACG
    • By ACG 7th Jan 18, 11:52 AM
    • 17,045 Posts
    • 8,932 Thanks
    ACG
    • #4
    • 7th Jan 18, 11:52 AM
    • #4
    • 7th Jan 18, 11:52 AM
    Speak to Nationwide. There is no point doing a DIP without knowing what figures to input. I would be calling them if I were in your shoes and I do this sort of thing every day.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 7th Jan 18, 6:29 PM
    • 58,962 Posts
    • 52,280 Thanks
    Thrugelmir
    • #5
    • 7th Jan 18, 6:29 PM
    • #5
    • 7th Jan 18, 6:29 PM
    I also know we shouldn't stretch ourselves and affordability is there for a reason but we can quite comfortably afford the increased repayments without hardship (would be an extra 275 per month, disposable income is ~1,600).
    Originally posted by Alarae
    Lenders are required to assess and judge affordability on a what if basis, i.e. a higher rate of interest as given under regulatory guidance. Could you afford the mortgage comfortably if your mortgage interest rate was 6%?

    Pushing boundaries is all very well. Remember that a mortgage is a long term committment. No need to take undue risk for the sake of a few additional months of saving.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Alarae
    • By Alarae 7th Jan 18, 6:43 PM
    • 325 Posts
    • 334 Thanks
    Alarae
    • #6
    • 7th Jan 18, 6:43 PM
    • #6
    • 7th Jan 18, 6:43 PM
    Thank you, ill give them a call on Monday. Was just hopeful someone may have been in a similar position and could weigh in as their lines are closed this weekend!

    I understand it sounds a bit foolish, however it is just that a house that we can see ourselves in with our future family is just within our grasp, and would be perfect. It just so happens it has come to the market about five months too early, as I will be getting a payrise of approximately 7k in August. We do have a large chunk of equity (100k) so if worst comes to worst in the event of a struggle we would sell. Luckily I can cover the mortgage and all bills on my income alone, although it wouldn't be a fun time.

    Obviously if we can't do it then we can't and will wait. All we can do is try.
    • ACG
    • By ACG 7th Jan 18, 6:48 PM
    • 17,045 Posts
    • 8,932 Thanks
    ACG
    • #7
    • 7th Jan 18, 6:48 PM
    • #7
    • 7th Jan 18, 6:48 PM
    There are lenders who will potentially accept the pay rise, I am not sure if nationwide is one of them or not.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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