Has Nationwide Declined You For a Mortgage? Here’s What To Do Next.

As one of the largest high-street mortgage lenders in the UK, Nationwide tends to have stricter lending criteria than most. So, if you’ve recently been declined for a mortgage with Nationwide, don’t feel too disheartened, as it doesn’t mean other lenders will reach the same decision.

Due to the sheer volume of mortgage enquiries Nationwide receives, each applicant will be vetted using an automated decision-making process. If your application doesn’t quite fit within its lending parameters, you’ll likely receive a frustrating ‘computer says no’ response. 

The good news is your mortgage journey is not necessarily over if you’re rejected by Nationwide. We work with lots of specialist mortgage lenders who assess each applicant on a case-by-case basis using human underwriters. This method allows far greater flexibility for accepting applications that might not seem ‘perfect’ when viewed by a computer. 

In this guide, we’ll outline some of the main reasons why Nationwide would decline a mortgage application, what steps you can take to improve your chances when you re-apply and how Haysto can help make your mortgage possible when other brokers can’t. 

Why Nationwide might decline your mortgage application

In general, there’s three overarching reasons why Nationwide could decline your application: 

• You haven’t provided enough evidence to satisfy the affordability checks and prove your income can cover the monthly mortgage repayments for the amount you want to borrow (this can be a particular issue if you’ve recently become self-employed, for example).  

• Your credit score is too low, typically caused by one or more bad credit issues registered on your Credit Report and/or you’re not registered on the electoral roll at your current address. 

• The survey carried out on the property you’re looking to buy has returned a valuation below the purchase price, changing the overall loan-to-value outside Nationwide’s lending criteria

More specifically, your mortgage application could be declined by Nationwide for several reasons including the following: 

• You’re currently paying into a debt management plan (DMP)

• The main source of your annual income comes from seasonal contracts

• You’re currently paying into a payday loan

• Your salary is paid to you in a foreign currency

• You want to apply on a joint borrower sole proprietor basis

• The property you want to buy is located in the Channel Islands, Isle of Man or the Scilly Isles

• You rent a room in your house to a lodger and have included this income for affordability purposes

• The property you’re looking to buy is constructed from timber

• You’ve recently returned to the UK from working abroad

• You’re using retained profits or a combination of salary and net profits from your business as your main source of income

• You want a self-build mortgage (to build your own property)

In addition to the above, Nationwide will decline mortgage applications for particular property types, such as mobile homes, houseboats, and for flats above either a shop or a pub. 

(Source: Criteria Brain )

What steps you should take next

If Nationwide has rejected you for your mortgage, the one thing you mustn't do is rush in and reapply straight away with other mortgage lenders, expecting a different outcome. 

Applying for a mortgage will show on your Credit Report but won’t show if you were accepted or declined. However, multiple hard search mortgage applications in a short period of time will indicate to a lender that you’ve been rejected and lower your credit score, making it harder to be approved. 

That’s why it’s essential to take your time and follow these steps to give yourself a better chance of getting the mortgage you need: 

• Find out why Nationwide declined your mortgage. Speak to Nationwide and establish why your mortgage was declined and what the circumstances were that led to this decision. If the reason given is specific to Nationwide’s lending criteria (your salary is paid in a foreign currency or you’ve only just returned to the UK, for example), you can then search for lenders who will accept these conditions. If it’s a credit issue, take some time to repair your credit score before reapplying. 

• Speak to a mortgage broker. Once you know the issue that led to your application being rejected by Nationwide, the smart next move is to seek the help of an experienced mortgage broker. Your broker will be able to help rebuild your application and identify lenders who will look more favourably on your case. 

• Apply with the right lender. Taking the time to fix whatever issue led to your application being rejected now puts you in a much stronger position to get the mortgage you need. With your broker’s assistance, you can now reapply with a lender whose criteria are better suited to considering your case. 

How Haysto can help make your mortgage possible

Haysto has a proven track record of securing mortgages for people rejected by mainstream lenders, such as Nationwide. That’s because we know that automated decision-making simply doesn’t work for most complex issues, and everyone’s circumstances are different. 

A rejection from one lender doesn’t mean all others will do the same. In many cases, the difference between getting a mortgage or not can depend on choosing the right lender most suited to your specific requirements. 

We work closely with several specialist lenders who help people in similar situations every day. These lenders prefer a more human approach to assessing an application rather than a computer-based checklist, giving you a better chance of success. 

All you have to do is make an enquiry and a member of our mortgage team will be in touch to get started.