Nationwide mortgages

You can apply for a Nationwide decision in principle, also known as a mortgage in principle, both online and in branch.

Nationwide customers have the option to overpay their mortgage by 10% of the remaining outstanding balance per year, as standard.

Self-employed mortgages are not actually a product, but this term is often used to describe lenders that offer their range of mortgages to self-employed individuals.

Nationwide do accept self-employed mortgage applications, so long as the applicant is able to demonstrate proof of their self-employed income for a minimum period of 24 months.

All Nationwide mortgage offers are valid for 180 days, both for new-build and older properties. If you have less than 30 days left on your offer, you may be able to request an offer extension of 45 days if needed.

Lenders don’t often quote approval rates, as approval time can vary significantly. However, Nationwide are very transparent, quoting their measured service standards for each stage of the application on their website. 

At the time of writing, the Nationwide website quotes that the current average length of time from application to offer is around 8 days, and 13 days for referred cases.

Lenders reject any applications that don’t fully meet their lending criteria. Nationwide are fairly flexible compared to many high street banks, probably given their mutual status as a building society. Nevertheless, you’re most likely to be rejected by Nationwide if:

• Their property valuation doesn’t match up to your requested loan amount

• You have more serious bad credit, such as a DMP, IVA or bankruptcy

• You’re unable to provide an address history of at least three years

• You’ve been self-employed for less than 24 months

• You’re reliant on non-standard income (bonuses etc) to boost your affordability

If you’re unable to meet the criteria of Nationwide, however, a mortgage broker will be able to help you look at more flexible specialist lenders.

Nationwide will consider some bad credit applicants, such as those with defaults and CCJs, as well as satisfied DMPs (debt management plan) - although ongoing DMPs are not accepted. 

They will also look at discharged bankruptcy after three years, which is fairly flexible for a high street lender, as many require six years clear of this type of debt. However, they will still want to know the details of any credit issues that you have and assess on a case by case basis.

Yes, it may be possible to port your rate to a new property if you move home. However, if you want to borrow less, you may incur early repayment charges (ERCs).

If you aren't able to complete your new purchase within 180 days of paying off your existing mortgage, you won't be able to port your mortgage and you'll need to apply for a new mortgage product (and may need to pay ERCs too).

If you are an existing Nationwide customer, you will be able to switch mortgage deals without incuring early repayment charges as long as you have less than 4 months left on your existing deal.

It's up to you whether you choose a new deal with Nationwide, or compare deals from across other lenders too. Speaking with a mortgage broker when your mortgage deal is coming to an end could help you to assess your options.

If your Nationwide deal comes to an end, you'll be automatically moved to Nationwide's Standard Mortgage Rate (SMR) or Base Mortgage Rate (BMR). However, you can find a new deal to avoid this.

Nationwide allows you to look for new deals up to 4 months in advance of your current one ending without incurring early repayment charges. You can either stick with a mortgage from Nationwide or compare deals from across a wide range of lenders.

How much you will be able to borrow will depend on your individual circumstances. However, first-time buyers may be able to borrow a maximum of 6 times their salary when getting a mortgage from Nationwide thanks to their 'Helping Hand' mortgages.

Nationwide's maximum lending limits will also vary depending on things like property type, but generally speaking the maximum LTV available (95% or 90% for new build properties) is available on mortgages between £5,000 and £750,000. Those wanting to borrow more will need to opt for a lower LTV mortgage option. The maximum LTV for interest only mortgages is 75%.