What To Do If Nationwide Has Refused Your Mortgage

In this article, we’ll explain what to do if Nationwide has rejected your mortgage application, why this may have happened and how a broker can help secure the approval you need.

Are Nationwide a strict mortgage lender?

Nationwide’s mortgage approval policy is in line with most high-street lenders in the UK, in the sense that they all carry out thorough eligibility checks and due diligence around affordability and usually reject applications that fall outside of set criteria.

It is known to decline customers with certain types of bad credit, such as unsatisfied debt management plans. It can also be strict with its 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 foul 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.

What is the timescale for a Nationwide mortgage application?

It usually takes around two weeks from application to offer when you apply with Nationwide. The time frame might be longer if the deal is less straightforward, due to things like bad credit, a non-standard property type or complex self-employed income.

What to do if you’ve been declined by Nationwide

1. Don’t re-apply straight away. 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. 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 finance applications.
2. Find out exactly why Nationwide refused to offer you a mortgage. It’s important to gather all of the facts around your rejection. Download all of your credit reports if bad credit was the reason, 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.  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 position as you. Make an enquiry to get started with the right mortgage broker today.

Can you appeal the decision?

Yes, you can usually appeal straight away. This can normally be done either online or via email to the appropriate department (this information is typically found on the lender’s website, with instructions as to how to follow the correct procedure).

It’s probably best to wait until you have all the details as to why this happened and then consider all of your options before lodging an appeal.

Get expert advice immediately if…

• You have severe types of bad credit eg: Bankruptcy
• You have little-to-no previous address history
• You have supplemental income sources, such as bonuses and overtime
• You are self-employed with one year’s accounts
• You have had a mortgage application declined already

If any of the above apply to you and your application it’s important to get expert advice. These are common reasons any Nationwide refuse mortgages and an expert broker could help you find a more lenient alternative lender.

Common reasons why Nationwide rejects mortgage applications

The property isn’t worth what you’re paying for it

Some aspiring home-buyers find that they have a 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 continue the process 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 homebuyer report or a structural survey, the latter being ideal to obtain a thorough inspection of the property.

You have a history of bad credit

If you had a 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 not necessarily with more severe issues – bankruptcy or previous repossessions, for example.

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.

You don’t have enough address history

Nationwide’s eligibility criteria explicitly state that all applicants have to provide a minimum of 36 months’ address history or they cannot be considered for a mortgage. There are other mortgage lenders who can look at applications with less (12-24 months).

You want a mortgage based on commission/bonus income

Some people earn a sizable amount of their wages through regular bonuses and commission payments and 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.

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

Nationwide offers 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.

Other reasons

There are countless reasons why Nationwide might decline a mortgage application, besides the ones listed above, such as:

• You’re only employed on a seasonal contract basis
• You’re currently repaying the balance for a payday loan
• You receive your employment income in a foreign currency
• You’ve submitted a mortgage application with a guarantor
• The property is located in either the Channel Islands or the Isle Of Man

Regardless of the reason why you’re application was rejected by Nationwide, it’s important to remember that this doesn’t need to be the end of your plans to buy a home.

The brokers in our network specialise in virtually every kind of issue that can derail an application, and we’ll make sure you’re matched with the right one.

How long does it take to re-apply for a mortgage?

This all depends on the reasons why you were initially declined by Nationwide. If, for example, you have severe adverse credit on your record or the property you want to buy is outside the UK then these issues may not be simple to rectify quickly.

But, if it’s something quite straightforward or specific to this lender’s criteria, there’s a good chance you can consider re-applying straight away.

Once you know why you’re application was rejected you can then take steps to resolve these issues thoroughly. When this has been done, with the help of a mortgage broker, your new application should hopefully take as long as is standard to process and get the approval you need.

How Online Mortgage Advisor Can Help

The right broker will have the knowledge and expertise to salvage your plans, whether that’s through a successful appeal or a new application with a more suitable lender.

We offer a free broker-matching service that will take the circumstances around your unsuccessful application and pair you with the advisor who’s best equipped to turn it into a mortgage promise. This will be a broker we’ve vetted ourselves, so we can vouch for their track record helping customers who have been rejected by a high street lender.

Call 0808 189 2301 or make an enquiry online and we’ll set up a free, no-obligation chat between you and a broker who could help you revive your home-buying ambitions today.