Nationwide Save to Buy - I've been so stupid

[Honeybear30]

So started this account last August, whereby you save £50 a month for six months and depending on your circumstances they will approve a 95% mortgage. For some reason the standing order I set up with my bank to pay the £50 expired last February and I stupidly didn't notice. Chances are I setup the expiry date without realising. So you can miss three months payment in 12 months and not be penalised but I've missed four. By one sodding day as it's 1st July today. If we were to get another bank to approve a mortgage for us would we be able to get nationwide to be lenient and grant us a mortgage? (We want to go with nationwide because they offer exactly what we want) Has anyone got any experience with this scheme? I understand that there are rules and restrictions and we've not met them but I'm hoping someone has a positive story to share. I'm so annoyed with myself. And also pregnant so possibly hormonal and slightly irrational. Our tenancy runs out in august so we are on a bit of a deadline as we want to buy our rented house and the baby is due in September. All advice/experience welcome!

I had a different, but equally stupid issue with Nationwide last year. I had set up a standing order - to my own savings account no less - then forgotten and stopped using that account. I incurred loads of charges on the account due to non payment, and was about £200 down by the time I realised what was going on! Anyway, after crying and shouting at my lovely DH about it, I rang them, explained the situation, and they refunded the money and cancelled all outgoing charges. They were brilliant! I can't say for sure they'll help you, but ring them up and explain. Give them a chance- you might be surprised!

Thank you for a positive story :) they called us today to confirm prior to our mortgage advisory appointment that we failed to meet the terms of the account as we missed four payments. So I'm not sure explaining what has happened is going to help. This does inspire me though that when we approach them again they might be willing to bend the rules for us. It's so annoying because we are perfect candidates but I just messed up this standing order! Hopefully DH will be able to convince them that the commission and bigger picture will be worth lending to us at the 95% rate!

I don't think the saving scheme will have a massive impact (it won't help as you've not really shown any financial savvy by failing to notice that you've not been paying this money each month) but what will be a bigger stumbling block will be wanting a 95% mortgage whilst you are pregnant.

Does your DH earn enough to be able to afford it with 2 dependants (you and the baby)?

Have you got an agreement in principle? If not, your chances of getting everything sorted by August are fairly slim.

Relying on them wanting commission isn't going to get you anywhere. Those days are long gone and there are very strict rules about responsible lending now.

I hope it works out for you but don't get your hopes up too high.

As a mortgage adviser at nationwide, I can sadly tell you that no, there is no wiggle room. You're either eligible or not. Fwiw, it would be a disciplinary offence for me to submit your application if it's outside criteria.

The only exception would be if it were nationwide's error. Sorry not what you wanted to hear

Sorry- I meant to say the saving scheme won't have a massive impact on you getting any mortgage as a single factor.

eminybob has confirmed you won't get a save to buy offer with Nationwide but your circumstances might make it very difficult to secure a 95% rate anywhere.

I really am surprised that people still think lenders will 'bend the rules' for them given the mess that got us into pre-recession and the measures to prevent that which have since been introduced.

DH does earn enough to support us so yes we will get a mortgage even though I'm pregnant. bearbehind I'd be interested to know on what grounds you are making such sweeping statements? Your posts sound very harsh so I'd like to know if they are because you absolutely know what you're talking about or if it's your opinion?

Eminybob thanks for being so clear, it's helped clarify things for me :) do nationwide only offer 95% mortgages under the save to buy scheme or is it something they would consider anyway?

I made the comments I did based on the facts you gave.

I'm an accountant so my comments are based on more than just opinion.

It sounds like you've lost the opportunity for the Save to buy scheme and lending criteria on 95% mortgages is extremely strict.

Are you basing the fact your DH can afford the mortgage with 2 dependants on fact or hope?

Have you entered all your details into a lenders online calculators?

Have you got a decision in principle for your mortgage?

You sound very naive about the process- relying on the lender 'bending the rules' for you and only looking forward to their commission isn't going to get you anywhere.

If you really don't know much about the process you'd be better off going to see a broker before you apply for a mortgage. They will advise you on how likely you will be to get the loan you want and which lender to place it with.

How much do you intend to borrow and on what salary? Don't over stretch yourself

Nationwide only offer 95% mortgages to eligible save to buy account holders, or existing mortgage customers moving home.

I should add that the point of the save to buy scheme is to demonstrate that you are capable of managing your finances in such a way that you can commit to a regular standing order.
The credit scoring on 95% mortgages is very strict anyway, so this is kind of an extra check. That's why we also offer 95% to existing customers (where otherwise eligible of course) because we can see the payment history.

Once you have saved enough again in to the s2b to be eligible, another thing that will help acceptance is banking with nationwide, if you don't already.

I'm married to an accountant. We can afford the mortgage. It's fact not hope. I'm not relying on the lender to bend the rules, nor am I naive about the process. I was asking for opinions because nationwide would be our preferred lender so I wanted other peoples experiences with them. If nationwide won't lend to us then someone else will. The only reason we didn't get the mortgage in principle was because we missed the payment into save to buy by one day, they were fully aware of our finances and my pregnancy. I know that lending is more restricted than it was, especially on 95% mortgages.

Sleephoglet we're not over stretching, the forecasted mortgage repayments are only slightly more than we pay in rent and we have been saving the amount we pay in rent on top of what we are paying in rent every month. If that makes sense?! And we have of course considered how my pay will be affected due to mat leave and how our income will be affected by childcare costs should I go back to work.

Thanks eminy, we could carry on with the standing order and get the required six months but we've run out of time because our landlady wants to sell now. We don't bank with nationwide currently (except the s2b) account so think we'll approach our own bank as I know they offer 95% and we're always being asked by them about a mortgage.

I'm in this scheme. But I really don't get how saving a poxy £450 over a year (9x 50) shows them that you're a suitable candidate for a 95% mortgage.

I wouldn't expect them to change the rules OP. They were quite clear with me when I set my account up

Lol true cunture! I did think the same never mind the several hundreds every bloody month I've been putting in another account the WHOLE time But then technically I have failed to meet this very basic criteria which I thought was oh so easy to meet. Which I do of course accept is completely my own fault.

I'm now wondering whether there's a restriction on how long the 95% offer is open for... Is it two years from opening the account?? I'm 18 months in and still need another 20k for the deposit and stamp duty. Not gonna happen over the next six months! This of course assumes London prices don't go up another 30%... Sigh.

Don't know I'm afraid, if Eminy is still around I'm sure she'll know! I actually can't find the answer in the mountain of leaflets I have lol.

Actually found it! It says you have three years :)

Hm, probably not doable Ah well, it was worth a shot!

Just read the terms and conditions and it says :

If you have not applied for the Save to Buy mortgage on or before the third anniversary of opening the Account .. The Account will automatically convert to a Nationwide CashBuilder account or equivalent instant access account.

So it can't take you more than three years to save. Seems a strange restriction.

I guess the idea is to hurry you along so they get your money sooner rather than later? And maybe they think any more than three years and chances are you'll have more than the 5% so more likely to withdraw it and go elsewhere. I'm completely speculating of course!

Yes I suppose. Sadly saving tens of thousands doesn't feel like an easy task for me and my DP

OP, have you put all your details into one of the online lenders calculators?

They tend to be on the generous side but they do give you a ball park figure.

I know you're convinced you'll be able to afford a 95% mortgage on one salary but if you've been saving the same amount as your rent every month how come you only have a 5% deposit?

I don't mean to sound harsh but the lenders will want to understand why, when presumably you have 2 incomes now, you've only saved that amount and they'll be concerned that losing 1 income and gaining a dependent will make it unaffordable.

Many people are in a situation where their rent is more than a mortgage would be but the amount they pay in rent is in excess of what the lender deems to be affordable.

You might know you can manage on your income but if the computer says no they won't bend the rules for you?

Income multiples aren't the be all and end all anymore but they are a starting point- how many times your DH's salary are you looking to borrow?

Is he a self employed accountant?

The 3 year rule is a bit daft.

I'm assuming (but don't know - I'm not privy to this sort of information) that it's if nationwide decide to pull the s2b mortgages it means they could with 3 years notice effectively.

If someone opens the s2b account on the proviso that they can get the mortgage whenever they want, ie in 10 years, but nationwide don't offer them any more, there could be issues.

As I say that's just my opinion.

Yes we've done the online calculators with all sorts of figures, me going back to work, me not, with child care full time, with it part time. It has been a well thought out process. The reason we only have 5% is that our plan to buy was in a few years time but since the landlady told us she's thinking of selling we've hurried things along because we love this house and don't want to leave. We've therefore managed to save 5% in less than 12 months. He's not self employed, we'd have no chance then!

Honestly my question wasn't about 'will we get a mortgage?' No amount of online discussion is going to answer that without providing our exact financial situation which obviously I'm not going to do. My question was about experiences with nationwide in particular and our chances of them still lending to us.

eminy that does make sense and is a far more logical and well informed conclusion than mine!