Hi,
My mother is a long time tenant with our local council and we recently made a joint application for the Right to Buy which was approved. The figures are as follows:
House value: £66,000 (its not upto much :P)
Discounted price: £29,040
We subsequently made a joint mortgage application requesting to borrow £45000 in total, the additional amount being for home improvements. I was led to believe this is still classed as borrowing less than the value as its the value, not the discount price thats used, and that the remaining difference of £21000 between the loan amount and the value would be treated as a deposit.
Together we have an income of just short of £30,000, and our current rent is about £370 a month. The mortgage would be about £280 a month over 16 years.
The removal of rent alone, and replacing it with the mortgage payment would actually be saving us money, and we even provided documentation from our local council of over 15 years of rent history being paid on time.
In addition to this, I have about £500 per month disposable income as evidenced by 12 months bank statements.
One hiccup we had is my mother has different pay each week and they required a reference from her employer for explanation, I know this was supplied but dont know exactly what they said on the reference.
Anyway to cut a long story short, the DIP was referred to the underwriters and we were declined with 3 reasons given.
1: Borrowing extra and above the purchase amount needed - As discussed in branch, the LTV taking into account the value, and not the purchase price, was 70% so I am unaware how this is a problem.
2: Already existing credit agreements - I admit theres a fair few to my name but Im single with no dependents, living with parents and no commitments, I feel theyre being very simplistic here and as evidenced by incomings and outgoings and bank statements, I have remaining dispoable income. I also provided 6 years credit report showing all agreements paid on time and up to date.
3: No personal funds supplied - As with Right to Buy, the difference between amount borrwed and house value is considered the deposit and this was even reiterated to me in the branch discussion, so i dont undertand their position.
Is there an appeals process that anyone is aware of with Nationwide, and can anyone shed any light on if theres anything at all I can do?
thanks,
My mother is a long time tenant with our local council and we recently made a joint application for the Right to Buy which was approved. The figures are as follows:
House value: £66,000 (its not upto much :P)
Discounted price: £29,040
We subsequently made a joint mortgage application requesting to borrow £45000 in total, the additional amount being for home improvements. I was led to believe this is still classed as borrowing less than the value as its the value, not the discount price thats used, and that the remaining difference of £21000 between the loan amount and the value would be treated as a deposit.
Together we have an income of just short of £30,000, and our current rent is about £370 a month. The mortgage would be about £280 a month over 16 years.
The removal of rent alone, and replacing it with the mortgage payment would actually be saving us money, and we even provided documentation from our local council of over 15 years of rent history being paid on time.
In addition to this, I have about £500 per month disposable income as evidenced by 12 months bank statements.
One hiccup we had is my mother has different pay each week and they required a reference from her employer for explanation, I know this was supplied but dont know exactly what they said on the reference.
Anyway to cut a long story short, the DIP was referred to the underwriters and we were declined with 3 reasons given.
1: Borrowing extra and above the purchase amount needed - As discussed in branch, the LTV taking into account the value, and not the purchase price, was 70% so I am unaware how this is a problem.
2: Already existing credit agreements - I admit theres a fair few to my name but Im single with no dependents, living with parents and no commitments, I feel theyre being very simplistic here and as evidenced by incomings and outgoings and bank statements, I have remaining dispoable income. I also provided 6 years credit report showing all agreements paid on time and up to date.
3: No personal funds supplied - As with Right to Buy, the difference between amount borrwed and house value is considered the deposit and this was even reiterated to me in the branch discussion, so i dont undertand their position.
Is there an appeals process that anyone is aware of with Nationwide, and can anyone shed any light on if theres anything at all I can do?
thanks,