What To Do If Nationwide Rejects Your Mortgage Application

Has Nationwide turned down your mortgage application, and you're unsure what to do next? Visit the Revolution guide to structure a defined, successful action plan.

Nationwide is one of the larger mortgage providers in the UK and a popular choice for applicants who already use the building society.

However, as with any high street lender, Nationwide has multiple criteria and policies, so there are always times when they will refuse to lend.

This guide runs through some of the typical reasons for a Nationwide mortgage refusal and explores alternative borrowing options.

What are the Common Reasons for Nationwide to Refuse a Mortgage?

Every application is assessed, and so if you fall outside of the standard lending terms, it's likely you will be rejected. Here are the five most common scenarios.

  • 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 mortgage repayments.

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.

What is a Nationwide Mortgage Application Referral?

The referral means that your application has not yet been approved but has been passed to the underwriting team for further investigation.

This process doesn't mean you will be rejected, but it can be because the bank isn't comfortable lending on the information provided and requires a more detailed assessment.

What Can I Do if Nationwide Withdraws my Mortgage Agreement in Principle?

The best thing to do if Nationwide withdraws their agreement in principle is to find out why. Once you understand what issues have arisen, you can contact Revolution Finance Brokers to identify a better-placed lender to accept your application.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

FAQs

How does our broker-matching service work?

Most people need to wait around two weeks from applying for a Nationwide mortgage to getting an offer.

Following a property valuation, you'll usually have around a week before you receive a mortgage offer. However, if there were any issues with the valuation, Nationwide can withdraw your agreement in principle.

Usually, yes. Rarely, Nationwide is a high street lender who won't reject your mortgage application if they can see gambling history in your bank statements.

Provided gambling isn't a financial risk or excessive; they won't consider this a problem.

However, if you want to remortgage to raise finance to pay off debts, you will be turned down.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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