What To Do If Nationwide Have Refused Your Mortgage

Like most high street lenders, Nationwide usually refuses to offer mortgages to anyone who doesn’t fit their criteria. But if they’ve turned you down for a mortgage, or you think they’ve probably going to, there’s no reason to think that’s the end of the line.

Sure, being rejected for a mortgage can feel like a major setback on your journey towards homeownership, but bear in mind that options could still be available. Read through our guide to find out what to do if Nationwide have declined you, or you fear they’re about to.

Are Nationwide a strict mortgage lender?

Nationwide are roughly as strict as other high street mortgage lenders, but are known to decline customers with certain types of bad credit, such as unsatisfied debt management plans. They can also be strict with their income requirements and won’t approve self-employed applications with less than two years’ accounts or accept bonus and commission income.

If you think you’re likely to fall afoul of Nationwide’s lending criteria, try to stay upbeat and remember that a broker could help you find an alternative lender who’s far more flexible.

Common reasons Nationwide reject mortgage applications

• 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 of the property.

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. 

3. You don’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.

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 might.

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.

6. Other reasons

There are countless reasons why Nationwide might decline a mortgage application, besides the ones we’ve listed above. But it’s important for you to keep in mind that we can still help you out, regardless of the circumstances surrounding your mortgage rejection.

The brokers in our network don’t discriminate when it comes to customers who’ve been declined for a mortgage. There are experts who specialise in virtually every kind of issue that can derail an application, and we’ll make sure you’re matched with the right one.

What to do if you’ve been declined by Nationwide

• 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.

How a mortgage broker can help you overcome these issues

If you think Nationwide are likely to decline you for a mortgage because of any of the above issues, keep in mind that it could still be possible to get approved for the finance you need with the help of the right mortgage broker.

There are brokers in our network who occasionally have access to exclusive deals with Nationwide, but if you don’t meet their criteria, they could help you find an alternative mortgage provider with a more flexible lending criteria.