General Criteria

Age/Term

Minimum age for mortgage applicants is 18.

The maximum term that Nationwide will lend up to is 40 years.

New borrowers -Nationwide mortgages must be repaid on or before the eldest applicant's 75th birthday.

Current Nationwide borrowers whose existing current mortgage term extends beyond the eldest applicant's 75th birthday can take out a new mortgage over the term remaining on their current loan, subject to satisfying all other lending criteria - see below.

Current Nationwide borrowers under the age of 75 whose existing term extends beyond their 75th birthday may apply to port their product over the remainder of their current mortgage term providing:

  • They don't increase the term(s) beyond the current remaining term(s).
  • Any additional borrowing (which must be on new products) taken must be repaid on or before the eldest applicant's 75th birthday.
    • If the customer requires new additional borrowing (which must always be on new products) it must be repaid on or before the eldest applicant's 75th birthday. However if the term of the ported product(s) exceeds that of the new additional borrowing the term of the ported elements must be reduced to the term of the new additional borrowing
  • They continue to meet our standard status requirements and comply with our lending criteria.
  • They pay any applicable Early Repayment Charges (ERCs) if they reduce the loan.

Current Nationwide borrowers already aged 75 and over may apply to port their product over the remainder of their current mortgage term providing:

  • They don't increase the term(s) beyond the current remaining term(s).
  • They don't increase the loan to value (LTV)
  • They don't take any further borrowing
  • They pay any applicable Early Repayment Charges (ERCs) if they reduce the loan.
  • They continue to meet our standard status requirements and comply with our lending criteria. Please contact your BDM or Sales Support team for more information.

As a responsible lender, Nationwide will require details of how applicants intend to continue to meet repayments should the chosen mortgage term take them into retirement.

  • The maximum acceptable retirement age is 70
  • The retirement age of your client will be based on the lower of their stated retirement age or the state pension age relevant to your client

For further information on Lending into Retirement, please see our Income Criteria page.

Deposits

Acceptable Sources of Deposit

Applicants' own resources
  • Savings
  • Inheritance
  • Equity from sale of property

NB. Non-EEA Foreign Nationals without indefinite leave to remain in the UK must provide a deposit of at least 25% from their own resources.

Builders Cash backs/Deposit
  • It is acceptable for a builder to provide as an incentive a cash back or contribution towards the deposit provided this does not exceed 5% of the purchase price or valuation, whichever is the lower. If the cash back/deposit paid is greater than 5%, the excess will be deducted from the price and our lending based on the reduced value.
  • Builder cash backs/deposits are not accepted in conjunction with Equity Share or NewBuy/MI New Home.
Gifts
  • There must be no conditions attached to the gift. The only exception is where the gift is provided by a family member and is subject to a second charge or family trust arrangement. The only condition is for the repayment of the charge upon sale of the property.
  • A Gifted Deposit form is required as proof of all applications where any of the deposit has been gifted.
  • If a property is to be purchased at Genuine Bargain Price, then the application should be made via direct channels only. You should direct your client to their nearest Nationwide branch.
    Genuine Bargain Price is defined as any sale where the vendor is purposefully and knowingly selling the property to the applicants under value. This type of sale includes the following:
    • Interfamily sale (ie buying from a relative)
    • Employee (ie buying from their employer)
    • Private tenant (ie buying from their landlord)
    If the property is being sold at full market value and part, or all, of the deposit monies are being provided by the vendor, your client should also be directed to their nearest Nationwide branch.
MoD Long Service Advance of Pay Scheme (LSAP)
  • This scheme was suspended by the MoD on 1st April 2014, however for applications approved before this date, monies from this scheme can still be used as a deposit providing the whole loan is used as the deposit
  • If the maximum product limits available at the time mean the LSAP is insufficient to meet the shortfall between the purchase price and the maximum available loan, then an additional deposit will be required
  • Monthly repayment must be included in affordability calculation
  • If the application is for an Equity Share loan then the applicant(s) must provide a minimum 5% deposit in addition to the LSAP
Forces Help to Buy Scheme (FHTB)
  • Monies from this scheme can be used as a deposit (where the application is for an Equity Share loan then FHTB is not an acceptable deposit type).
  • If the maximum product limits available at the time mean the FHTB is insufficient to meet the shortfall between the purchase price and the maximum available loan, then an additional deposit will be required.
  • Monthly repayment including the mandatory insurance payment must be included in affordability calculation, this will be confirmed from the Personal Information Note (PIN) as issued to your client by the MoD.
  • For purchases the PIN will be required to evidence deposit, for re-mortgages the applicants payslip will evidence the total monthly FHTB outgoing.

The following are acceptable in conjunction with FHTB

  • NewBuy/MI New Home: FHTB customers can take part in the NewBuy (England) and MI new home (Scotland) schemes.

The following are unacceptable to be used in conjunction with FHTB

  • Help to Buy Equity Loan Scheme: FHTB customers cannot participate in the Help to Buy equity loan share scheme
  • Other Equity Loan Scheme: FHTB customers will not be accepted in conjunction with any equity share scheme
  • Right to Buy: FHTB cannot be used in conjunction with Right to Buy applications
  • Shared Ownership: FHTB cannot be used in conjunction with Shared ownership applications
  • An FHTB application keying guide can be accessed here

Unacceptable Sources of Deposit

  • Any loans taken out by your client, with the exception of borrowing from another lender against an additional property owned by the applicant (subject to affordability and criteria).
  • Funding from credit cards
  • Repayment of a loan from a third party

Proof of Deposit

The following proofs are required to evidence deposit

UK Based Personal Savings/Bank Accounts
One full month's bank statement dated within the last three months. There must be evidence of at least one month's worth of savings built up in the account.
Foreign Based Personal Savings/Bank Accounts
For accounts based in an EEA Country, the proof requirement is for the most recent three months bank statements, showing the full cycle of transactions for the period. In addition, one months UK bank statement showing the funds being transferred to the UK bank account of the applicant.

For accounts outside the EEA , the proof of requirement is for the most recent six months bank statements, showing the full cycle of transactions for the period. In addition, one months UK bank statement showing the funds being transferred to the UK bank account of the applicant.
Gifts
A Confirmation of Gifted Deposit declaration is required for all applications where any of the deposit has been gifted.
Inheritance
A letter from the executor or solicitor for the estate, confirming the amount that is to be / has been inherited, and if the funds have already been received, a copy of your client's bank statement showing the monies going into their account.
Equity From Sale of Property
Sale price of the property.
Forces Help to Buy (FHTB)
Personal Information Note (PIN)

Proofs

Identification

The Society must satisfy identification requirements for ALL mortgage applicants. You may be asked to provide evidence to confirm your clients name and address.

In order for your client to proceed with their application we may require the following:

UK and European Economic Area Nationals

Please supply one document from the UK Photo ID list below:

  • Copy of a valid full UK Passport
  • Copy of a valid full UK Photocard Driving Licence

Alternatively please supply one document from the Proof of name list and one different document from the Proof of current address list.

Acceptable proofs of name:
  • UK based Bank or Building Society statement (less than three months old, internet banking statements/Nationwide Flex Account statements/Cheshire, Derbyshire and Dunfermline building societies statements are not acceptable)
  • Copy of a Valid full UK and Northern Ireland Driving Licence (old style paper)
  • National ID Card (EU Only)
  • HM Revenue and Customs notice of coding (less than twelve months old)
  • UK Firearms Licence or Shotgun Certificate
  • Benefit Letter (less than twelve months old)

Acceptable proofs of current address
  • UK based Bank or Building Society statement (less than three months old, internet banking statements/Nationwide Flex Account statements/Cheshire, Derbyshire and Dunfermline building societies statements are not acceptable).
  • Copy of a Valid full UK and Northern Ireland Driving Licence (old style paper)
  • HM Revenue and Customs notice of coding (less than twelve months old)
  • Gas, electricity or telephone bill, not mobile (less than three months old, internet statements are not acceptable)
  • Mortgage statement (excluding Nationwide, Cheshire, Derbyshire and Dunfermline building societies), water bill or council tax bill (less than twelve months old, internet statements are not acceptable)
  • Benefit Letter (less than twelve months old)

Acceptable proofs of UK Residency for non-EEA Foreign Nationals (With Indefinite leave to remain in the UK)
  • Copy of a valid non-UK or European Economic Area (Non-EEA) passport
  • Acceptable proofs of "indefinite leave to remain in the UK"
  • Passport containing stamp for indefinite leave to remain in the UK or
  • Copy of visa/residency permit (front and back for new biometric formats) or
  • Written confirmation of indefinite leave to remain in the UK from the Home Office
  • Additional acceptable proof of current address as detailed above

Acceptable proofs of UK Residency for non-EEA Foreign Nationals (Without Indefinite leave to remain in the UK)

Exceptions can be made for non-EEA nationals without indefinite leave to remain in the UK or permanent residency status, provided that the following criteria are met in addition to our standard lending policy requirements.

  • Copy of a valid non-European Economic Area (Non-EEA) passport
  • Copy of visa or work permit (Tier 1 or Tier 2 visa will be accepted)
  • Applicants who are in the UK on a Spousal or Ancestral Visa will be considered, but if their income is used for affordability they must contribute a minimum of 25% deposit from their own resources, even if married to a UK/EEA national who is a joint applicant
  • Additional acceptable proof of current address as detailed above

See below for further lending criteria relating to non-EEA Foreign Nationals without Indefinite leave to remain in the UK.

Bank Statements

Bank statements might be requested for a number of reasons; proving certain income types, receipt or payment of rent, payment of mortgage or general conduct.

Paper Bank Statements must show:

  • Customer(s) initial(s) or full name(s)
  • Customer(s) full address
  • Account Number and Sort Code
  • All pages must be numbered and visible
  • The required number of month's transactions showing
  • Bank/Building Society logo visible
  • Regulatory footer statement visible

Online Bank Statements must show:

  • Customer(s) initial(s) or full name(s)
  • Account Number and Sort Code
  • A valid web address displayed at the bottom of each page
  • All pages must be numbered and visible
  • The required number of month's transactions showing

Online bank statements are not acceptable for proof of name or address.

Non-EEA Foreign Nationals

For applications to be considered, indefinite leave must be evidenced by a stamp in a currently valid passport or written confirmation from the Home Office.

Where indefinite leave to remain in the UK is not granted, applications can be considered subject to meeting the following criteria:

  • Minimum 25% deposit which must be from the applicant's own resources. Gifts and builder's cash backs are not acceptable, unless they are in addition to the 25% deposit provided from the applicants own resources.
  • Applicants must have been legally resident in the UK for at least the last 3 years
  • Applicants must have either Tier 1 or Tier 2 immigration status, the government definitions of Tier 1 and Tier 2 are as follows:
    - Tier 1 for highly skilled workers
    - Tier 2 for skilled workers with a job offer
  • Applicants must have their salary paid into a UK bank account
  • Equity Share applications from non EEA Nationals without indefinite leave to remain are not acceptable.


For information about products please see our products, loan size and maximum LTV criteria.

Credit Scoring

All applicants are credit scored before a mortgage is offered usually at Decision in Principle stage.

For your client to be accepted:

  • The credit reference must cover all addresses for all parties in the last 3 years. Applicants who cannot provide an acceptable full 3 year UK address history cannot be accepted.
  • The applicant must not be an undischarged bankrupt.
  • Applicants who have been discharged for at least 3 years can be considered.
  • Normally there should be no history of a repossession, either voluntary or enforced

Multiple credit references over a short period may adversely affect your client's credit rating and you should explain this to your client before requesting Nationwide to undertake a Decision in Principle.

DIP decisions are available between:

  • 6am and 11pm Monday to Saturday
  • 6am and 6:30pm Sundays

DIPs requested outside of these hours will have to be rekeyed when the system is available.

Any application that is initially made in joint names which results in a decline must not then be scored individually to try for an accept decision, even if either applicant in their own right has sufficient income to support the mortgage. Subsequent applications from either of the individuals may only be accepted if there is no longer any connection between the original applicants.

Acceptable proof of Payment history

Please note, applicants must not have exceeded 3 months' arrears in the last 3 years.

Mortgage payment history can be evidenced using:

  • The last annual mortgage statement (covering 12 months' payments)
  • Where a mortgage statement covers less than 6 months payments and is over 6 months old. The last 3 months bank statements are required
  • Where the above is unavailable an existing lender's reference is required

Tenancy payment history

We do not require you to verify past payment history for any applicant who is currently renting or has been renting over the last twelve months.

How long are offers valid for?

  • Remortgage offers are valid for 90 days.
  • House purchase offers are valid for 180 days. This includes applications for new build properties (whether completed or not).