Denied Nationwide Mortgage - Bad Credit Score

Rudman_1

Hi all,

Was hoping for a little advice…

My girlfriend and I have been casually looking at buying our first house for a while but are now taking things seriously after seeing the house we really want. I have the 10% deposit and between us our incomes are more than adequate to cover the mortgage.

We went to see Nationwide earlier in the week to get a principle agreement and were hoping to make an offer based on this. However, after ticking all the boxes we failed the Credit Scoring and were refused to go any further.

Whilst I've been pretty sensible in the past and never missed a repayment, low balances, registered voting address…etc my girlfriend hasn't been as good and there have been a couple of missed payments..etc going back a few years.

She also had around £7k of debt around two weeks back but this has been paid off with a personal loan - would this still show on any report?

The failed Credit check has now gone on our records and we've since heard that Nationwide are incredibaly strict with their Credit Score criteria and we were fighting a losing battle from the start.

We've spoken with a mortgage advisor who suggested that Natwest would be best for us as they are less strict and still allow us the mortgage we require - however, should we fail their credit check that's another blot on the record and we find ourselves in an even deeper hole.

I've paid for my Exerian credit report and it's shows as 'good' but the Mortgage advisor doesn't think my girlfriends should be bad at all and thinks we only failed due to the Nationwide strictness.

Should we apply through Natwest? Are we likely to fail? Are their more lenient lenders?

Can anybody recommend what to do next?

Thanks in advance!

somethingcorporate

Paying £7k debt off with a £7k personal loan is still a debt and would more than likely be showing on her file. Were you referring to the possibility this could temporarily be showing as £14k?

Failed credit searches do not appear as black marks on your score, only that a search was made and too many of these in a short period of time can hinder your ability to get credit as it can appear that you are "desperate". More than 2-3 in a 'short' period of time may have an impact but there are posts on here where people have made over a dozen credit applications in 6 months and still getting approved for everything.

Find yourself a good, whole of market mortgage broker to discuss your personal circumastances. I'd steer well clear of Nationwide, their rates are terrible anyway.

Good luck!

harding1985

somethingcorporate wrote: »

Find yourself a good, whole of market mortgage broker to discuss your personal circumastances. I'd steer well clear of Nationwide, their rates are terrible anyway.

Good luck!

We got a mortgage with Nationwide one month ago, we are first time buyers with 10% deposit and we got a 2 year fixed for 5.86% nowhere else could touch this rate with a 10% depo.

JA1000

Are you not curious to see your girlfriends credit score?? I suggest this is done now.

Conrad

Worth noting Natwest will go over your last 3 months Bank statements.

90% credit scoring will be tough anywhere. I find some smaller building societies can be better.

Rudman_1

Sorry, I meant to write 'Private' loan to pay off her debts.

She now owes her Mother the £7k now so all loans on any credit cards or personal loans are nil.

We've got her credit report from Equifax and it shows 'Good' of 474 - that's what is confusing. We are waiting for her Experian log in details to come in the post to see what that is and what Nationwide judged us on.

highdigger

Just as a note of warning, we've had an application declined by "Head Office" of Nationwide. This apparently means they don't have to tell you why - VERY frustrating!! Hope your decision was made by lesser mortals so you get some clarity. Will you post the outcome if you can in order to try and show some insight into the workings of their decision making!

Thanks, Debbie x

Dan_1976

I think its just a scoring issue. In 2010 lender like the nationwide will be strict.

A good broker will know who is being a little less up tight, in my day Abbey or possibly halifax if income is very good. Not sure nowadays!

JA1000

I am seeing quite a few refusals from Nationwide on all these posts!!!!

snapfish17

We've been turned down for additional mortgage borrowing of £30k from Nationwide (both existing mortgages currently with them for last 5 years, no late payments etc). If the application had been successful the total borrowing would have equated to just under 30% of the value of the property (based on Nationwide's valuation done before our last borrowing funded an extension and extra 2 bedrooms) ie we have at least 70% equity in the property. Joint income is £150k. Partner has checked Experian record and it is "excellent". Only problem with mine is 2 missed payments (1 month late each) on my only credit card with a limit of £1000.

Ridiculously strict credit scoring criteria and I was shocked when I was told by the (sheepish sounding) advisor on the end of the phone that there was no formal reconsideration process or appeal mechanism. I'm keen to push them to reconsider - any tips as to what has worked for others? Are we wasting our time?

Burridge60

NW are quite pickey. Was there a reason you chose to go to them direct and not seek wider advice?

Some entries on your credit file can be there for anything from one month to two months after you have paid the money to the lender to clear the debt. If it is a credit card the next month's statement might bring to light some debt due to interest accruing on a cash advance on a daily basis not accounted for in the previous month's statement. A closure fee may not have been met or even the early repayment charge.

It takes 3 - 5 days for the payment to clear and there is normally a period allowed just in case a recall is made against the payment. You would think with computers that it would be instantly advised to the credit reference agencies that you have cleared your loan or credit cards but this can be two weeks or more.

As is becoming more common it depends on the date of the month on which you pay your debts down and the date of the month you got searched by the lender. If you have a debt you have recently paid off it is better to admit to the debt and say it is to be repaid than say NO.

If you miss payment dates on "trivial" debts of up to £1,000 how can any other Lender expect you to handle borrowing more money on a much larger debt.

Get your credit file. The £2 one not the Credit Expert full service just the Consumer Credit Act one. As if the Credit Expert is really going to help you get credit. They might show you "what the big companies see" but it is your data they hold no one Else's and they "con" people into paying £15 to £20 a month to see it when it is your right under the Consumer Credit Act.

Please do not got to any lenders until you see your ow report and then see someone that can tell you what is there and what affect it has on a credit score with a Lender.