I'm terrified of our mortgage not being approved! How likely is it after the last time?

[CrapBag]

Originally we were told how much we could borrow (by Nationwide), it was no where near what we intended to borrow so thought it would be a walk in the park. We applied for less than half and it was turned down. Could only borrow a ridiculously small amount even though we have a substantial deposit.

We had to pull out of that purchase, which was unfortunate because we could still go ahead as the house was cheap. Now the amount Nationwide said we can borrow just isn't enough. I phoned London and Country and got a MIP for more than what Nationwide would lend. Still not great but just about doable if we adjusted our expectations of which area we could live in.

We have had an offer accepted on a lovely house. With our deposit, we need to borrow exactly what our MIP is for.

After having a MIP with Nationwide, then being told we couldn't borrow that amount, I am terrified of it happening again. Is it likely?

Nationwide said we could borrow £34900, we applied for £45000 and they originally told us we could borrow up to £105000.

London and Country have given us a MIP for £49435 (was hoping for £60000 but this would be just about doable for the house we are buying at £135000).

[GatheringRequirements]

Lending criteria for each lender is different , so don't worry too much about it.You may have been unfortunate on that particular instance but if you have an MIP that means you could borrow up to that limit.Good luck

[CrapBag]

I know, its just that we had a MIP with Nationwide and they turned it down and would only lend 10k less, which won't be do able with this next purchase.

[Crutchlow35]

Nationwide are incredibly strict. We have had clients turned down for a £50,000 loan on a £150,000 house with £100,000 as a deposit. I think Nationwide are one of the worse lenders at the moment with the new criteria.

[Gemma77]

Hoping you get the mortgage you need. I think you will be okay as the new mortgage rules have been in for a few months now so your new MIP will be based on new rules already.

We had a mortgage offer in place for what we needed (and was told we could have more) but that was under the old system. Our chain fell through so we now have to get another mortgage as ours expires soon and they have already extended once. worried that we will struggle this time around under the new rules in which case we will see if a broker can help us, otherwise we will be pulling out of our purchase.

Good luck

[titchypumpkin]

We had a MIP via London and County, and were then able to borrrow the maximum amount they'd said, like you we were worried that when it came to it we wouldn't get it but we did so try not to worry

[WickedWitchoftheNorthWest]

If I were you I would go through a different independent broker as London and Country brokers tend to be inexperienced and the service tends to be poor. If you go onto the MSE mortgages and endowments forum (google it) you will get good advice from professional brokers. Basically you need to try to find out why Nationwide rejected you. Have you checked your credit reports? You can get them free through Noddle and Equifax, but go to that forum (google it) for more information.

[CrapBag]

I went to London and Country because so many people on here recommended them. So far the man I am dealing with has been very helpful, plus the amount he has given me a MIP isn't hugely over what Nationwide were willing to give, just under 15k more.

I don't understand Nationwide tbh. We have good credit so thats not a problem, we had just paid off our mortgage with them, have a substantial cash lump sum and some equity. They said our (meagre) outgoings were too much, which is utterly ridiculous as we don't spend much money. Small amount on child care (which I choose to pay, this isn't compulsory and they questioned why it was low), small credit card balances, although we have cleared them before we apply again, buildings insurance, council tax and petrol. She said on the phone it was because of our outgoings and they calculated we could only afford payments of £163 a month. Totally ridiculous.

So although L & C didn't quote us what we wanted, we are hoping it is more realistic and there won't be a problem this time.

Good luck to you Gemma. It seems to be crazy at the moment. Everyone I know of who is trying to get a mortgage seems to be struggling with the new rules, which have gone too far IMO.

[WickedWitchoftheNorthWest]

If you don't understand Nationwide then a good, experienced broker should be able to explain it to you and make sure it doesn't happen again. If you just want to hope for the best and go with L and C then that's your choice. However L and C are really best at easy cases and since you've already been rejected for a mortgage once I wouldn't think you'd be I. That category or that your want to take any chances on it happening again. But as I say, up to you. Good luck.