Advice Needed - Nationwide Mortgage Declined - Any Hope in Appealing?

holatara

My OH and I applied for a mortgage with Nationwide. We originally had 15% deposit and were requiring £145k. My OH already owns a house, is self employed and earning around on average 40k a year net with perfect credit. I earn 26k, am a first time buyer and, unfortunately have one 5 1/2 year old default from an old mobile phone (I was young and foolish!).

We have gone through a mortgage broker who declared the default to Nationwide and said keep your fingers crossed. Obviously weren't crossed tightly enough as it came back declined - reason being high risk.

This was 2 weeks ago. I have since settled the balance of the default (£351) and am awaiting my credit report to update. Our broker is sending my proof of payment along with a letter of explanation to Nationwide. We also now have 25% deposit. What do you think our chances of the appeal being successful are? The broker reckons it's good as our LTV is now 75% and although the default will still be showing on my report , as it's now satisfied and 6 months away from dropping off it may, just may be overlooked?

Any advice would be great guys! Thanks in advance!

originalmiscellany

Hmm...

If a) your OH has a mortgage on his house (you don't state that I think), then his salary will be seen to be servicing that mortgage (in part),
then b) 26k salary to 145k is going to be rejected as it's a huge amount - almost 6 times your salary (if my mental maths is right)

Does your OH have a mortgage on his house, and if so how much?

TrickyDicky

I dont think it will fall off in 6 months. I think it is 6 years from when the default is settled (assuming I understand you only settled it within the last 2 weeks). But it is not for alot, so shouldnt affect you majorly.

Good luck with the appeal. With 25% deposit, you may get a better deal elswhere anyway.

holatara

originalmiscellany wrote: »

Hmm...

If a) your OH has a mortgage on his house (you don't state that I think), then his salary will be seen to be servicing that mortgage (in part),
then b) 26k salary to 145k is going to be rejected as it's a huge amount - almost 6 times your salary (if my mental maths is right)

Does your OH have a mortgage on his house, and if so how much?

Hi. He does have a mortgage, outstanding c. £100k. He has tenants living there, their payments cover the amount he's paying for the mortgage so the broker said that should balance it out. Is that right?

holatara

TrickyDicky wrote: »

I dont think it will fall off in 6 months. I think it is 6 years from when the default is settled (assuming I understand you only settled it within the last 2 weeks)..

Oh no!!! My understanding was it fell off 6 years after the default was registered?

holatara

originalmiscellany wrote: »

Hmm...

26k salary to 145k is going to be rejected as it's a huge amount - almost 6 times your salary

We are now looking for £130k as got together some extra for the deposit. Sorry, I know it's complicated!

markd1982

TrickyDicky wrote: »

I dont think it will fall off in 6 months. I think it is 6 years from when the default is settled

I believe that all credit referencing agencies say that a default will come off your credit file 6 years from the date of default and not date of settlement.

Hope this helps and good luck