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Nationwide makes affordability calculator more generous

Nationwide has refined its affordability calculator so more applicants pass through, Mortgage Strategy understands.

The lender has issued a broker note titled ‘Making it easier to do business’, stating it has refined some areas within the affordability calculation relating to outgoings, although the lender has refused to give further details.

One broker, who wishes to remain anonymous, told Mortgage Strategy: “My business development manager called me earlier in the day to tell me that Nationwide was improving its affordability calculator to make it more generous.

“The email I received from Nationwide said only that it was improving its calculation but the BDM has clearly stated that they are really going for it towards the end of the year by making its calculation more generous.”

A spokeswoman for Nationwide says: “Nationwide has reviewed our mortgage affordability calculator and has made refinements to some of the areas relating to outgoings. This will ensure that we continue to deliver the right outcomes for customers, and to help them to secure the right mortgage.”

Last month, figures showed a 9.3 per cent annual dip in lending in the three months to June. Nationwide lent £5.8bn in the first quarter of this financial year, down from £6.4bn a year earlier, with net lending falling from £2.6bn to £1.7bn over the same period.

Nationwide’s share of gross lending across the market fell from 15.5 per cent in the three months to June last year to 11.4 per cent over the same period a year later.



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  • David Smith 11th September 2014 at 12:44 pm

    Hi John.

    Nice to hear from you. No need to panic as I have just tried it out. It calculated a loan available of £19000 for my clients whereas another lender has calculated £113000. You can relax now my friend.

  • John Lacy 11th September 2014 at 10:39 am

    Is this a sign of the return of the slippery slope of reduced criteria to get market share as happened constantly between 2002 and 2007?
    What next? Probably American banks selling mortgage backed securities.
    The words manure and fan spring to mind for sometime around about 2022.