Buying a home is exciting, but applying for a mortgage can feel overwhelming. Nationwide offers an online mortgage application process to ease this stress. This blog will guide you through every step, from securing a Decision in Principle to submitting your documents.
Keep reading for simple tips on making the journey smoother.
Understanding Nationwide Mortgage Applications
Applying for a Nationwide mortgage is simple and convenient. You can apply online, secure a Decision in Principle (DIP), and gather the necessary documents to support your application.
Apply for a Mortgage Online
Applying for a mortgage online simplifies the start of your home-buying journey. You can initiate your nationwide mortgage application from any location at any time, making it convenient for those with busy schedules or preferences for digital transactions.
The process allows applicants to check their mortgage application status through the nationwide mortgage application tracker, ensuring transparency and ease of access throughout.
After starting your application online, you'll be prompted to secure a Decision in Principle (DIP), moving you one step closer to homeownership. This step confirms how much Nationwide is willing to lend you based on preliminary information, setting clear expectations for your budget and search parameters.
The convenience of applying for a mortgage online cannot be overstated – begin anytime, anywhere, and track your progress with ease.
Secure a Decision in Principle (DIP)
Getting a Decision in Principle (DIP) is a crucial step for first-time buyers planning to submit a nationwide mortgage application. This preliminary stage shows how much the lender might offer you, setting clear financial boundaries for your house hunting journey.
Estate agents often ask for a DIP before they schedule property viewings, highlighting its importance in the home-buying process.
Once you secure your DIP through the online application portal, you can download the certificate immediately. This document not only boosts your credibility with sellers but also accelerates the overall purchasing timeline.
With your DIP in hand, gathering required documents for your application becomes the next critical step.
Gather Required Documents for Your Application
Gathering the right documents for your nationwide mortgage application process is crucial. This step ensures your application moves smoothly and can help speed up approval times. Here's what you need to prepare:
- Proof of identity: You must present a valid government-issued photo ID, such as a passport or driver’s license. This helps the lender verify that you are indeed who you claim to be.
- Proof of income: Lenders require this to assess if you have the means to repay the mortgage. Documents include recent pay stubs, tax returns from the last two years, and W-2 forms or 1099 forms if self-employed.
- Bank statement: It shows your financial health and prove that you have enough funds for the down payment and closing costs. Typically, lenders ask for the last two to three months' statements.
- Credit history report: Although lenders will check this themselves, having your credit report allows you to correct any errors before applying.
- Employment verification: Some lenders might want contact information for your employer to verify employment status and salary.
- Proof of deposit: A document showing that you have the necessary funds for a deposit can strengthen your application.
- Additional assets or income: If you receive income from other sources like investments or rental property, provide documentation for these as well.
Each piece of documentation plays a vital part in the nationwide mortgage application timeline, helping lenders understand your financial situation better.
The Nationwide Mortgage Application Process
Navigate the Nationwide mortgage application process by completing pre-application steps, verifying your identity, income, and deposit, as well as meeting residency and nationality criteria.
Ensure a smooth application experience with these essential steps.
Pre-application Steps
- Review your credit report and resolve any discrepancies or outstanding issues, as a good credit score is crucial.
- Calculate your budget to determine the mortgage amount you can comfortably afford with consideration to your income, expenses, and other financial obligations.
- Save for a deposit that meets Nationwide's requirements, generally at least 5% of the property value for first-time buyers.
- Research and compare mortgage products and rates offered by Nationwide to find the best fit for your financial situation and future plans.
- Consider seeking pre - application advice from a Nationwide mortgage advisor to ensure you are fully prepared before beginning the official application process.
Verify Identity, Income, and Deposit
When applying for a mortgage with Nationwide, you must verify your identity, income, and deposit. Here are the steps to ensure that your application is in order:
- Provide valid identification documents such as a driver's license or passport to confirm your identity.
- Submit proof of income, including payslips, tax returns, and bank statements, to demonstrate your ability to repay the mortgage.
- Verify your deposit amount with bank statements or other relevant financial documents, showing the accumulation of funds for the down payment.
Remember that these documents are essential for assessing your eligibility for a Nationwide mortgage and securing approval smoothly.
Meet Residency and Nationality Criteria
To apply for a mortgage, you must be a UK resident and at least 18 years old. Additionally, only those who are eligible to reside in the UK permanently can apply for a mortgage. Meeting these residency and nationality criteria is essential when applying for a Nationwide Mortgage in the UK.
Tips for a Smooth Nationwide Mortgage Application
- Boost your credit score, organize required documents in advance, and seek guidance from a mortgage advisor for a hassle-free application process. For more insights on navigating the complexities of the mortgage application process with Nationwide, read our full article.
Improve Your Credit Score
To improve your credit score, focus on paying your bills on time, reducing outstanding debt, and maintaining a healthy credit utilization ratio. Regularly monitoring your credit report for errors or potential identity theft is crucial.
By taking these steps, you can gradually enhance your creditworthiness and increase the likelihood of securing a favorable mortgage offer from Nationwide. Utilizing available tools such as budgeting apps and automatic bill payments can also contribute to boosting your credit score over time, giving you better chances with your mortgage application.
Furthermore, consider avoiding opening new lines of credit or closing existing accounts before applying for a Nationwide mortgage. These activities can impact the average age of your accounts and result in a temporary dip in your score.
Prepare Necessary Documents in Advance
Prepare necessary documents in advance to expedite your Nationwide mortgage application process. Here's a detailed list of the required documents:
- Proof of identity such as a valid driver's license, passport, or state-issued ID.
- Verification of income including recent pay stubs, W-2 forms, or a log of tax returns for self-employed individuals.
- Documentation of assets such as bank statements, investment account statements, and retirement account statements.
- Details about your employment history from start to end date and verification from your employer if necessary.
- Information about any outstanding debts including credit card balances, student loans, or car loans.
- A record of your rental payment history or details on previous mortgages if applicable.
Preparing these documents in advance will streamline your application process and help you secure a decision in principle more efficiently.
Consult a Mortgage Advisor for Guidance
If you are seeking expert guidance for your mortgage application, consider consulting a mortgage advisor. Our professionals can provide personalized recommendations and assistance with the complex process of getting a mortgage.
Whether you are looking to improve your credit score, prepare necessary documents in advance, understand specific mortgage types, or navigate affordable home ownership schemes, a mortgage advisor's expertise can be invaluable.
If you are ready to take on a mortgage with us, we are available for phone or video call appointments to support you every step of the way.
For those requiring special attention due to unique circumstances, such as having mortgage terms into or beyond retirement or needing advice on specific mortgage types, a conversation with a knowledgeable advisor is highly beneficial.
Nationwide assesses the property value at lower than the purchase price.
Valuations returned at lower than the mortgage value will result in a mortgage application rejection. The reason is that the bank isn't confident they'll get back the money they have loaned if the property were repossessed.
There are many options here, from appointing an independent surveyor and contacting the Revolution Brokers team for help commissioning a valuation report that supports your application.
There are issues with your credit file.
Nationwide mortgage rejections are often based on the credit assessment. This process happens after the agreement in principle stage, so you can be refused at any time up to the invitation to make a complete application.
If you have CCJ's on your file, you can sometimes get a Nationwide mortgage depending on when they occurred, but other credit problems may result in a rejection.
You cannot provide sufficient address history.
The bank will request at least three years of address history in the UK to consider any mortgage applicant. If you don't have enough history or haven't lived in the UK long enough, you'll likely be turned down.
Your income is based on bonuses or commissions.
Like many high street banks, Nationwide refuses to include bonuses or commissions in your annual earnings calculation - meaning they will likely reject an application based on this income to keep up with the
They will also disregard any regular overtime. If you earn bonuses or commissions in addition to basic pay, it's advisable to contact Revolution for help identifying a more suitable lender.
You have been self-employed for less than two years.
Nationwide will lend to self-employed people but will need filed accounts for at least two years. That is an absolute minimum, so you either need to wait until you have a more extended trading history or apply to a mortgage provider with greater flexibility.
In any of these circumstances, you will likely find a mortgage approval from a more appropriate lender. For example, some of the lenders we work with specialise in self-employed mortgage deals.
Others are happy lending to professionals who earn their income on a bonus basis, and more will be flexible in how many years of address history they need.
What Can I Do Now My Nationwide Mortgage Has Been Turned Down?
If you have been rejected for a Nationwide mortgage, don't worry. High street banks and building societies are rarely flexible and are usually the best option for standard borrowers who comfortably fit all of the criteria.
Please don't rush into making more applications, as another bank may return the same result.
Instead, contact the Revolution Brokers team. Our independent experts will assess the circumstances and recommend lenders who we feel are most likely to accept your application and offer the most competitive rates.
If you can find out why Nationwide turned you down, this is also helpful. Understanding the criteria helps determine which lenders have policies that will ensure those issues aren't a problem elsewhere.
Finally, avoid applying to any lender without advice from a whole-of-market broker. Failed applications usually result in a mark on your credit file, so making more applications can make the chances of mortgage approval lower.
