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Mortgage Lending criteria

Mortgage Lending Criteria - Nationwide

Nationwide


Notes: The following information is general and may not apply to your mortgage. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Mortgage

Advances
Upto 1,000,000 (Remortgage only LTV 75)
Min 70.01% LTV

Notes
Mortgage is Portable, Mortgage is Flexible, Under payments allowed., Overpayments allowed.

If you move house and the lender is able to offer you a new loan, you can keep this mortgage product and you will not have to pay an early repayment charge if you transfer the balance and the terms of this product to the new loan for the remainder of the Benefit Period.

This product may not be available for any additional borrowing above the balance transferred when completing your new mortgage. This does not guarantee acceptance of any future loan application.

The following are Nationwide's paper exceptions and are therefore NOT available as an Electronic Submission.
     Equity Share
     More than 2 Applicants
     Genuine Bargain Price/ Selling to family members
     Have had a foreign address/BFPO in the last 3 years
     Portable Products
     Additional borrowing
     Nationwide Building Society Staff or Pensioners
     Applications for loans over 1 million
- Government indemnities such as NewBuy Guarantee Schemes(NewBuy ONLY PRODUCTS).

Please check Nationwide’s website for further criteria information regarding the Loan to Value


Shared Ownership/ Shared Equity: subject to maximum LTV of product


If remortgage with free legal fees; We will appoint a solicitor to carry out the legal work. We will pay for legal work in respect of a straightforward *Remortgage which will include the solicitor’s fees, VAT and the cost of all standard* disbursements.

It does not included any unusual disbursements or any fees incurred to verify the acceptability of leases, unusual search fees, rectification of a defective title (including work relating to grant/reservation of easements/covenants), change of name on the title deeds, transfer of equity, stamp duties, insurance premiums, dealing with repayment of third and subsequent charges, dealing with postponement of second and subsequent charges or merger of titles. You will remain liable for any fees charged by an existing lender.

The solicitor will be acting for us alone and not for you. You are free to take your own independent legal advice, but if you do you will be responsible for the cost of such advice. Once your application is processed, you will be contacted by the appointed solicitor.

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If remortgage with free survey; The valuation will only be the basic mortgage valuation carried out on the property for our purposed. You may want to arrange a more detailed inspection for your own purposed. You will need to pay for any additional detailed inspection you wish to have carried out at the property.

An 'overpayment' is any payment in addition to the normal monthly payment as quoted in section 6 above and also in addition to any arrears balance currently outstanding. Payments of capital included in your overpayments will reduce the amount on which we charge interest from the day after payment.

If you make overpayments totalling more than 10% of the original loan advance amount* (the Overpayment Allowance), during the early repayment charge period(s) shown in section 10, you will be charged an Early Repayment Charge.

This will be based on the percentage(s) shown in section 10 and calculated on the amount paid in excess of the Overpayment Allowance. The 12 month Overpayment Allowance period will start on the first day of the month following completion. This will continue to be reset every 12 months until the end of your benefit period as described in section 4.

If you are porting any products to your new mortgage, as described in section 10, the overpayment calculation will be based on the balance(s) being ported to this new mortgage and not the original advance amount on your existing mortgage. Your new 12 month allowance will commence from the first day of the month you complete on your new mortgage.

There are no restrictions to making overpayments after the product Fee Period has ended.
*original loan advanced amount is that quoted in section 6 excluding any fees added to the loan and less any fees deducted from the loan amount advanced.

We will allow you to pay reduced monthly payments at any time up to the value of any credit balance you have previously built up, provided all of your accounts are up to date. You must obtain our agreement to this prior to reducing your monthly payments.
Interest will not be charged on the increased balance arising from underpayments until the next capitalisation of the account.
The above are additional features of your mortgage product. If you switch to a new product in the future, these additional features may no longer be available:

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment No
PEP No
Pension No
Interest only (no RV) No
With Profits No
Unit Linked No
ISA No
Split Repayment No

Fees


Arrangement : varies
Booking : varies

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
upto 50,000 - 155
upto 100,000 - 180
upto 150,000 - 180
upto 200,000 - 205
upto 250,000 - 230
upto 300,000 - 270
upto 350,000 - 285
upto 400,000 - 310
upto 450,000 - 335
upto 500,000 - 360
upto 600,000 - 405
upto 700,000 - 455
upto 750,000 - 500
upto 800,000 - 500
upto 900,000 - 545
upto 1,000,000 - 585
upto 1,500,000 - 665
upto 2,000,000 - 790
upto 2,500,000 - 920
upto 3,000,000 - 1070


Homebuyers:
upto 50,000 - 255
upto 100,000 - 300
upto 150,000 - 330
upto 200,000 - 375
upto 250,000 - 420
upto 300,000 - 470
upto 350,000 - 515
upto 400,000 - 555
upto 450,000 - 595
upto 500,000 - 625
upto 600,000 - 670
upto 700,000 - 695
upto 750,000 - 730
upto 800,000 - 730
upto 900,000 - 770
upto 1,000,000 - 830
upto 1,500,000 - 1155
upto 2,000,000 - 1475
upto 2,500,000 - 1795
upto 3,000,000 - 2120

The 'Booking fee' is a non-refundable fee that is payable at the product reservation stage. This fee cannot be added to the mortgage balance.

The 'Reservation/Arrangement fee' is a refundable fee that is payable at the product reservation stage, however this fee can be added to the mortgage balance.



Redemption Charge - 90.00 Payable on early redemption. A non-refundable administration fee may be payable to Nationwide when you repay the mortgage. This fee will not be payable if, at any time of this mortgage, you take out a new Nationwide mortgage or you have 10 years or less remaining of the original term of this mortgage.
Added Mortgage Fees - 0.00 Payable upfront.

Nationwide Building Society reserves the right to collect from you any fees you have opted to add to the loan if the mortgage does not complete or if you change products.

Acceptable Property Types

 
Freehold Flat Refer
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie Refer
Flat Over 4 Storeys Refer
Listed Building Refer

Max Discount% 100
Max Market Value% 95
New Build acceptable.
Purchase of a second property limited to 85% LTV.
Properties with more than 8 bedrooms, 2 kitchens and 5 bathrooms, should be referred to lender.
Flats in blocks with lift of more than 5 storeys, should be referred to lender.
Properties over 1M refer to Lender.
Remaining lease details
England and Wales
Flats and Houses - Unexpired term after mortgage term ends - minimum 30 years.
Northern Ireland
Flats and Houses - Unexpired term after mortgage term ends - minimum 50 years.
Scotland
Flats - Unexpired term after mortgage term ends - minimum 50 years.
Houses - Refer
The maximum loan to value (LTV) on New Build flats is 75%
The maximum LTV on New Build houses is 85%

Remortgage* applications on partially built properties, partially completed barn conversions or building plots are not accepted. (*Remortgages include capital raising on a mortgage free self build/conversion/plot.)

Accepted Locations : England, Scotland, Wales, N Ireland
Shared ownership : Accepted

Requirements


Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency No
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan

Min Loan /Rmg 25,000
Max Loan /Rmg 1,000,000
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age 75 years
Min Term 1 years
Max Term 40 years
Bank statements may be required, refer to Lender.
Last P60 and last payslip. Alternatively employer's reference from current employer.
Only an accountant's certificate required for all loans up to 500k for Self Employed applicants.

Self employed proof loans up to 500,000 you have to provide an Accountants Certificate (must cover full 2 year accounts) for Over 500,000 loan 2 years accounts and Accountants certificate (must cover full 2 years accounts) and six months personal bank statements. Accountant’s Certificates must be prepared and signed by a professionally qualified Associate. Refer to lender for further details.

Foreign Nationals not within European Economic Area
Indefinite leave must be evidenced by a stamp in a currently valid passport or written confirmation from the Home Office

Where indefinite leave to remain in the UK is not granted, applications can be considered subject to meeting the following criteria:

Minimum 25% deposit which must be from the applicant's own resources
Applicants must have been legally resident in the UK for Foreign Nationals not within European Economic Area Indefinite leave must be evidenced by a stamp in a currently valid passport or written confirmation from the Home Office

Where indefinite leave to remain in the UK is not granted, applications can be considered subject to meeting the following criteria:

Minimum 25% deposit which must be from the applicant's own resources
Applicants must have been legally resident in the UK for at least twelve months
Applicants must have either Tier 1 or Tier 2 immigration status
Applicants must have their salary paid into a UK bank account at least twelve months
Applicants must have either Tier 1 or Tier 2 immigration status
Applicants must have their salary paid into a UK bank account
CCA regulated loans limited to 85% LTV.

Self Build - Not acceptable.

The LTV calculation for products and credit scoring on all equity share applications will be based on the full price or value of the property and not the reduced price being paid by the applicants. We will not lend more than the reduced price.
The limit for builders equity shares is 25%.

Shared Ownership - The valuation should be based on the full price of the property not the price of the share being purchased.
LTV for products are based on the price of the share.
Right To Buy - The valuation fee should be based on the District Valuer's valuation as quoted on the Notice of Purchase Price or Offer To Sell (Scotland.)


Foreign Citizens Refer
Ex-Patriates Refer

Income



Based on Income > 0
5.25 + 0 or 5.25 joint

Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Yes

Outgoings
Self employed capped to a maximum income multiple of 4 times.

For Sole traders and partnerships use the lower of the last 12 months Net profit figure (or share of Net profit figure if a partnership) or the average of the last 2 years Net profit figure, as confirmed by the Accountant's Certificate.

For Directors/Shareholders of Limited Companies use the lower of the last 12 months relevant director's remuneration and any share of dividends or the average of the last 2 years relevant directors’ remuneration and any share of dividends, as confirmed by the Accountant's Certificate.

NB - only treat Directors/Shareholders of Limited Companies as self employed where they have more than a 20% share holding in the business they work for.

Lending based on affordability - please refer to Nationwide website www.nationwide-intermediary.co.uk for affordability calculator

Shared Ownership: Maximum LTV is 90% of the applicants initial share (Existing Nationwide borrowers is 95%). The minimum initial share required is 25%.
Income from a second job can be used if employment is over 6 months.
Only 50% of overtime/commission will be accepted.

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account

Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income Add 25% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage



Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%

If the additional borrowing is more than 250,000 the application may be referred.


Adverse Credit



CCJs : Refer to lender
Defaults : Refer to lender
Arrears : Refer to lender max months 3
Bankrupt : Acceptable, min months Discharged 36
Current IVA : Not Acceptable
Repossession : Refer to lender

An application may be referred if either applicant has exceeded 3 months
arrears in the last 3 years.

Credit reference must cover all addresses for all parties for the last three years.
Normally the applicant should have no CCJs although one satisfied CCJ under 250 can be accepted (Scotland: Sheriff's Court Decree).

- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.