co-op mortgage referred

CHARDONNAY_3

My partner and I have just been accepted onto the ownhome scheme and have been in touch with co-op to secure a mortgage.

As I am on a 12 month contract, they will not take my income into account, so my partner had to make mortgage application in his name only. This was done yesterday and he was told the application would be referred and they would be in touch in 3 working days with a decision.

I'm not really sure what 'referred' means in this context - is it that we are not likely to be accepted?

My partner was a bit careless with a credit card at 18, but his mum bailed him out after he missed a couple of payments. Other than that his credit history is fine.

My only concern is the electoral roll. He sent the form to them about 4 weeks ago so he could be registered but from the website I see it can take 6 weeks for his name to appear on the elctoral roll.

Not really sure what to do and as it is now the weekend we have to wait until at least Monday for a decision - it's awful and I'm feeling very anxious.

17Dave

Referred usually means that there is something in the application that does not "fit" with standard lending criteria or a credit score that is borderline. It is better than a "no" and will be reviewed by an underwriter to make the final decision.
If they do say no ask why - they are not obliged to give an answer but might give an indication. If not get a credit report to see if there is a problem there.

Good luck - i hope it is a yes!!

CHARDONNAY_3

The application was declined. My partner wasn't given a reason (despite asking) but he has checked his credit report and the problem seems to be the credit card payments he missed at 18.

I am just wondering if we have been declined this time is it likely to happen again, as we are due to see a financial advisor on Friday about the mychoice homebuy scheme.

Also, as credit scores will have been checked a couple of times in close sucession, will this look dodgy?

wubblefish

Sorry I know you posted ages ago but was just having a search and wondered how you got on in the end? We have had an agreement in principle from RBS via the mychoice homebuy scheme, but then co-op ownhome contacted us saying we were also eligible for their scheme. Anyway having just spoken to co-op mortgage dept on the phone we have also been 'referred' and I have a feeling it's going to be a no. Now I'm worried that when we go back to RBS to finalise the no from Co-op will affect our credit score badly and RBS will now back out!! I wish i'd never bothered and stuck with the 1st scheme.....
Anyway I was wondering if you did manage to still get an offer elsewhere after Co-op said no or whether that messes your credit score up too much??