Can you reason with underwriters?

wesb24

My gf and I had an offer accepted on a house of 116k, deposit of 42, and a mortgage of 72k on 3.5% with NatWest.

THis was going to give us a monthly repayment of £370 over 25 years.

We got the MiP and then when it went to the underwriters, it got rejected due to 'adverse credit'. Now, I do have bad credit (from a few years ago, head in the sand over a water bill), however my gf and I pay £625 a month (almost double what our mortgage would be!!) every month for our rent and haven't shirked one of these. When I got my adverse credit, I was still paying £550 a month on rent and living on my own!

So, basically, we can easily afford the mortgage but is there anyway to reason with the underwriters?!?!?

Would appreciate any advice!!

Dan_1976

A few years ago with a good deposit you may have got it through with a good argument. But in 2010 I think you would struggle.

You could always put your case across in writting, using figures based on higher rates, say 10%. If it still looks good at that rate then go for it!?

hillcats

Hmmm, difficult question in the current climate...
I wonder if you could get a letter from your existing landlord / company you rent from to prove that you are indeed a reliable person who has always paid rent due on time for x amount of time, and confirming amount of rent paid and again how long you have been paying that amount.
Then you could maybe write to and try to reason with the underwriter stating facts as they are etc, that you pay X amount which is higher than the mortgage payment etc and you would ask them to kindly reconsider and you are prepared to maybe pay a slightly higher rate for a short while or take the stated rate but continue paying the minimum amount required to them plus the extra to match your rent payment amount as an overpayment for an agreed amount of time.

They hold all the aces now in these tough times, so good luck...
It is certainly a lender's market at the moment, they can pick and choose all the best !

Vincenzo

Speak to the underwriter handling your case and ask them if there is anything you can do to improve your chances.

secondtoughest

Hi - I had a similar issue with a Halifax FTB mortgage in Feb 09 over a phone bill dispute on my credit record. They freaked out about it, sent it to the underwriters where it seemed to sit for days (in reality about 4 days I think)

I panicked and went to Yorkshire, who approved the mortgage on the spot. Halifax phoned me back days later but I told them I'd found a better rate.

Some banks/building societies approve in branch, some have underwriters - in my case with Yorkshire, I could actually explain the situation to the branch manager and it got sorted. My LTV was 85%, by the way.

Good luck as it is a nerve wracking time!

Conrad

Why oh why do people use Natwest and RBS - one of the groups that practically went bust in the recessionand had to be bailed out by the Government.

Please people, think!!!!!!!

The RBS group are very cautious due to the above, they and N Rock are the last lenders to approach if your case is remotely borderline.

Maybe try a nice small building society that have real experienced flecible human underwriters.

herbiesjp

What exactly was the bad credit?

Was it a default? CCJ?

How much was it for? What was the reason for it?

At that LTV you could have a chance with a few lenders - but you would need a good broker to submit in the best possible light.