How Strict is Nationwide with Mortgage Applications?

Nationwide, like any responsible lender, has its set of rules and checks when it comes to mortgage applications. They’re known for being thorough, which can sometimes feel a bit strict, especially if your financial situation doesn’t tick all the traditional boxes.

If you have a few blips in your credit history or your financial situation is a bit out of the ordinary, like being self-employed or having a variable income, you might find Nationwide’s criteria more challenging. 

They look closely at your ability to repay the loan, so factors like your credit score, income stability, and even the type of property you’re looking to buy all play a part in their decision. 

It’s not that they’re unreasonably strict; they’re just careful to lend responsibly. Understanding this can help you better prepare your application or find a lender that’s more aligned with your specific circumstances.

What’s the Typical Approval Timeline for a Nationwide Mortgage?

When you apply for a mortgage with Nationwide, the time it takes to get a response can vary. Generally, you’re looking at about two weeks for a straightforward application. 

This is the time they need to check all your details, run credit checks, and make sure everything lines up with their criteria.

However, there are times when it might take longer. If your income sources are a bit complicated – maybe you’re self-employed or have multiple income streams – Nationwide might need extra time to look over your financials. 

The same goes for if you’re buying a property that’s a bit out of the ordinary, like a listed building or something with unusual construction. These factors can add extra days or even weeks to the process, as they need more detailed assessments.

What Steps Should You Take After Nationwide Declines Your Mortgage?

Being declined for a mortgage by Nationwide can be a tough pill to swallow. But it’s not the end of the road. Here’s a step-by-step approach to what you should do next:

Pause and Reflect

Your first instinct might be to jump right into another application with a different lender. It’s best to hold off on that.

Rushing into another application without understanding why you were declined can lead to repeated rejections.

Understand the Reason for Rejection

Nationwide should provide you with the reason for your mortgage application’s refusal. It’s crucial to understand this reason.

Was it due to your credit history? Or maybe the property’s valuation didn’t meet expectations? Knowing the reason will help you address the issue.

Review and Rectify

If the refusal was due to something in your control, like an error in your application or an issue in your credit report, take steps to rectify it. This might involve correcting errors or working to improve your credit score.

Consider Seeking Professional Advice

A qualified mortgage advisor can be invaluable in understanding what went wrong and how to improve your chances next time. They can also guide you to lenders who might be more suitable for your specific situation.

Steps to take after a mortgage rejection

Can You Appeal Nationwide’s Mortgage Decision?

Yes, you can. This is something you can do if you feel they’ve misunderstood your situation or if things have changed since you first applied.

When appealing, make sure you’ve got all the right information to back up your case. This includes any new details about your finances or credit.

To start your appeal, you need to contact Nationwide. It’s best to do this in writing. Explain why you’re appealing and include any new information that might help. 

Remember, an appeal doesn’t always change the decision, so it’s important to be clear and thorough in your approach.

You can appeal to a mortgage rejection with any lender as long as you have proof

When is Expert Mortgage Advice Essential?

Getting a mortgage can be tricky, especially when your situation isn’t straightforward. If you’re self-employed or if your credit history isn’t perfect, getting advice from a mortgage expert can help.

Mortgage experts are great for understanding different lenders’ rules, like those at Nationwide. They know about all the different mortgage deals and can find the best one for you. 

If your mortgage application is a bit unusual – maybe because of how you’re paying for your deposit or the type of house you want to buy – a mortgage expert can guide you on what to do next.

They’re also really helpful if you’ve been turned down for a mortgage. They can look at your application, suggest ways to make it better, and help you decide if appealing to Nationwide is a good idea.

So, talking to a mortgage expert can be a smart move to turn a no into a yes.

Why Might Nationwide Reject Mortgage Applications?

Applying for a mortgage with Nationwide and facing rejection can be disheartening. Let’s delve into the common reasons behind such refusals, presented differently from the competitor’s content for uniqueness:

History of Bad Credit

A significant factor for Nationwide’s mortgage rejections is an applicant’s credit history. Issues like unpaid debt management plans, bankruptcy, or repossessions are red flags. 

While Nationwide may consider those with minor credit issues, severe cases often lead to application decline.

Property Valuation Shortfalls

Nationwide evaluates the property’s worth during the mortgage process. If your chosen property is appraised for less than your loan amount, or if there are structural concerns, Nationwide might not proceed with the mortgage.

Independent property valuations or detailed surveys can give you a clearer picture of the property’s value.

Inadequate Address History

Providing a substantial address history, typically around 3 years, is a key requirement for Nationwide. If you fall short of this, your application may be declined.

However, there are lenders with more flexible criteria regarding address history.

Self-Employment Scrutiny

For self-employed individuals, Nationwide requires evidence of consistent income, usually two years of accounts.

If your financial records are limited or show variability, this could impact your mortgage approval.

Income Composition Issues

If a large portion of your income comprises bonuses or commissions, Nationwide may be cautious. They prefer stable and regular income for mortgage assessments.

Additional Circumstances Leading to Decline

Other scenarios that might lead to a rejection include employment on a seasonal contract, repaying payday loans, receiving income in foreign currency, applying with a guarantor, or seeking a mortgage for properties outside standard geographical areas.

Reasons for nationwide mortgage rejection

How Long Should You Wait Before Reapplying for a Mortgage?

Deciding when to reapply for a mortgage after a refusal can feel uncertain. It’s important to understand the best time to reapply depends on why Nationwide turned you down. 

If it was due to credit issues, you might need to wait until your credit score improves. This involves settling debts promptly and correcting any inaccuracies on your credit report. 

However, if the refusal was related to a lack of savings or property valuation concerns, you might be able to reapply sooner once these specific issues are resolved.

It’s all about ensuring you have addressed the reasons for the initial rejection before making another application.

Wait until you've fixed the issues

The Bottom Line

Getting a ‘no’ from Nationwide on your mortgage application can be tough, but it’s not the final word on buying your home.

It’s important to understand why you were refused. Maybe it was about your credit score, the property’s value, or your job situation.

A big help in this situation is talking to a mortgage advisor. They know a lot about mortgages and can give you advice that fits your own story.

They can explain why Nationwide might have said no, help make your application better, and find other lenders who might say yes.

If your lender’s decision has left you unsure about what to do next, don’t worry. We’re here to lend a hand. 

To take a good step towards sorting out your mortgage, get in touch with us. We’ll introduce you to a top mortgage broker who can give you the right advice for your mortgage needs.