What to do if You’ve had a Nationwide Building Society Mortgage Application Declined

1. They think the property isn’t worth what you’re paying for it

Some aspiring home-buyers find that they have a Nationwide mortgage application declined after valuation, and this is often because the property was valued at less than the mortgage they’re applying for. Most lenders are unwilling to lend under these circumstances because it means they might struggle to recoup the loan if the property was repossessed and sold on.

Nationwide will conduct a standard valuation to determine a property’s value and overall condition, though they won’t share this with you, even if they decline your application. To see how your potential property performs, you’ll need to get either an independent homebuyers report or structural survey, the latter being ideal to obtain a thorough inspection on the property.

If Nationwide has rejected your mortgage application on these grounds, it can feel like a major blow, but don’t lose sight of the fact that options might still be available. If you speak to a mortgage broker, they may find ground to appeal against Nationwide’s valuation, or find you an alternative lender whose valuation survey throws up different results.

2. You have a history of bad credit

If you had a Nationwide mortgage agreed in principle but were then declined after the underwriting process, this might be because there was an issue with your credit file. Nationwide does offer mortgages to people with certain types of bad credit, such as county court judgements (CCJs), but others are a deal-breaker. Case in point, borrowers with a debt management plan are usually rejected outright after the underwriters’ hard credit check.

Nationwide will consider mortgage applicants with satisfied debt management plans, though not everyone is in a position to delay their plans until their debts have been paid off. If you’re one of them, being declined after the agreement in principle (AIP) stage must have felt frustrating, but it might not be the crippling blow you think it is.

With guidance from an expert broker, it may be possible to find a specialist bad credit mortgage lender who helps customers with unsatisfied debt management plans every day.

3. You don’t have enough address history

Before your Nationwide mortgage application is referred to the underwriters, they will want to verify your personal details, including your income and address history. Some applications are knocked back early on because the customer doesn’t have enough address history.

Nationwide’s eligibility criteria explicitly states that all applicants have to provide a minimum of 36 months’ address history or they cannot even be considered for a mortgage. If this applies to you, it’s okay to feel disappointed at the thought of having to delay your plans, but the good news is that there are lenders who don’t ask for this much address history.

There are mortgage providers who will lend to customers with 24 months’ address history, one year’s address history, or even none at all, under the right circumstances (usually with the caveat that you need to be in long-time employment with the same employer).

4. You want a mortgage based on commission/bonus income

Some people earn a sizable chunk of their wages through regular bonuses and commission payments, and would rely on a lender accepting these forms of income to qualify for the mortgage amount needed. If this is you, then Nationwide may not be the right lender to approach. If they haven’t rejected your application already, there’s a good chance they will.

This is because Nationwide doesn’t allow mortgage applicants to declare bonus and commission income, and the same applies to overtime. If you’re now wondering how you can qualify for the amount you need to borrow, try to stay upbeat about your prospects, because there are lenders who are more than happy to accept bonuses and commission.

We work with brokers who specialise in customers with complex income and they know exactly which lenders will allow you to declare the highest percentage of your extra income. Finding the right lender could make a huge difference to the amount you can borrow.

5. You’re self-employed but can’t provide two years’ accounts

Nationwide offer a range of mortgage products for self-employed people, but you’ll likely struggle to qualify for them without at least two years’ accounts to prove your income.

This is the bare minimum you need before Nationwide will consider you for a mortgage, and they might have already told you that you need to postpone your plans until you’ve worked in your current capacity for long enough. Nobody likes the idea of having to delay something as potentially life-changing as a home purchase, so it’s okay to feel less than thrilled about this.

There’s good news, though: we work with brokers who specialise in self-employed applicants and they have a firm understanding of their needs. These brokers might be able to find lending options for you with less than two years’ accounts, as there are mortgage providers who don’t ask for as much income proof as Nationwide.

1. Don’t make a hasty re-application

There’s always the temptation to find another lender as quickly as possible in the hope that things will turn out differently than they did with Nationwide, but there’s no guarantee of that, if you don’t know the market inside out. Rushing into another mortgage application so soon could mean getting the same outcome, and too many rejections in such a short time could damage your credit report and jeopardise future applications for finance.

2.  Find out exactly why Nationwide refused to offer you a mortgage

If you have the time, it’s a good idea to gather all of the facts around Nationwide’s rejection. Download all of your credit reports if bad credit was the culprit, as this will give you the chance to challenge any inaccuracies in your file and optimise it for next time. It’s also worth trying to get your hands on any surveys and reports that were carried out.

If time is of the essence or you’re unable to get your hands on this information, simply move on to step three…

3. Make an enquiry with us so we can match you with a mortgage broker

If Nationwide have turned you down for a mortgage or you fear that they might, your best bet is to speak to a mortgage broker for advice about your options. The right broker will have the knowledge and expertise to give you the best chance of salvaging your mortgage ambitions, whether that’s through an appeal with Nationwide or another lender entirely.

We offer a free broker-matching service that will take all of the circumstances around your rejection into account and pair you with the expert best positioned to solve the issue. This will be a fully-vetted advisor with a track record of helping people in the same boat as you.