Declined Mortgage

Chappers28

I have been seeing a mortgage advisor and about 2 weeks ago had a mortgage in principle agreed for up to 147,000 with Natwest. I have had my offer on a house agreed for 148,00 and will need to borrow 133,000 (10% deposit) I then found a good deal for 5 year fixed rate for first time buyers at Natwest. This one had to be applied for direct, rather than through the mortgage advisor. I then got declined on lack of credit history, he said it was not due to bad credit history. I lived out of the country for 2 years and have since been living at my parents' to save up my deposit which could be the problem. What should I do? Who will accept me? My mortgage advisor is looking into it and will get back to me on Monday. Please help. I can't believe, when I am so good with money, that I can be declined on lack of credit history!

CloudCuckooLand

Have you registered on the electoral roll?
Only you will know you are good with money, if you disappeared out of the country, then reappeared without having any credit obligations.
Take out a credit card, use it a bit, pay it off in full...

Meeper

Frustrating, agreed. Understandable from the lenders' point of view? Yes.

You are asking a bank to lend you £133,000 without any proof of you being able to maintain a credit account. You live at your parents so there's no even a rental history to fall back on.

As has been mentioned, get a card, use it a bit, pay it off. Do that for a few months, then try again.

woodsey2002

Chappers28 wrote: »

I have been seeing a mortgage advisor and about 2 weeks ago had a mortgage in principle agreed for up to 147,000 with Natwest. I have had my offer on a house agreed for 148,00 and will need to borrow 133,000 (10% deposit) I then found a good deal for 5 year fixed rate for first time buyers at Natwest. This one had to be applied for direct, rather than through the mortgage advisor. I then got declined on lack of credit history, he said it was not due to bad credit history. I lived out of the country for 2 years and have since been living at my parents' to save up my deposit which could be the problem. What should I do? Who will accept me? My mortgage advisor is looking into it and will get back to me on Monday. Please help. I can't believe, when I am so good with money, that I can be declined on lack of credit history!

How long have you been back, have you got any credit since your return?
We're in the same position, went abroad for 5 years due to a company transfer/promotion and returned 2 years ago.
Even with a prior mortgage in the UK for 15 years, a bank account kept in balance and a credit card which was kept running when we returned no-one would consider us for the first 12 months and even now, having been back for 2 full years, a 135k salary, same employer for 14 years, bank account for 15 years and not one penny of debt we still haven't been able to secure a 90% mortgage, we applied to HSBC over two weeks ago but are still waiting for a decision, unfortunately both houses we were interested in have sold so if it does get accepted we don't have a house to buy now anyway but at least we may finally have a mortgage but its been a long hard stressful process and I've had many sleepless nights wondering why I ever came back from Los Angeles but you live and learn.
My advice would be to stay away from brokers though, Ive spoken to several and they've all been utterly useless and haven't had a clue with how to deal with our situation.
I was told by one that there was more chance of Elvis Presley being found alive than us getting a mortgage with HSBC yet they've been the only bank willing to look at our situation with a human being rather than computer says no.
I'm also sick of the patronizing attitude when we say we only have a 10% deposit, we lost $300,000 in equity on our house in LA so having had a mortgage for almost 19 years we're essentially having to start again so saving 50k in two years isn't a bad effort and if one more of them tells me to buy a cheaper house..anyway good luck:)

kingstreet

Chappers, can I get this straight?

You applied for an agreement in principle (AIP) to NatWest via a broker. This was accepted. You then tried to bypass the broker by going direct to NatWest and by doing this you were declined?

Did something in your application change between the AIP and a full application? Or did NatWest simply do another AIP for you, but this time directly through them? Higher mortgage? Different deposit/mortgage profile?

Are you now back with the original broker, or is a NatWest "mortgage advisor" the one you are waiting to hear from?

kingstreet

Is HSBC the bank you've had your account with while you were away?

If not, I suggest you try your account holding bank as they have had an ongoing relationship with you for a longish period.

woodsey2002

kingstreet wrote: »

Is HSBC the bank you've had your account with while you were away?

If not, I suggest you try your account holding bank as they have had an ongoing relationship with you for a longish period.

No our bank account and prior mortgage was with Nationwide and they practically threw us out of their office when we went in to see them, they wouldn't even consider us for 3 years..

we did get an AIP with the Halifax after being back for 12 months for a 90% deal but when we found a house and had an offer accepted they decided they could no longer honour the agreement with no explanation given, we had just moved into another rental property and weren't yet on the electoral roll so we assumed it was that but they never told us and didn't give us a chance to explain either..

kingstreet

Cold comfort to you, I know, but lenders are being incredibly picky who they lend to these days, particularly at higher percentages of the property value.

I'm sure there are plenty of potential borrowers out there wondering why they've been declined when there appears to be no good reason.

Fingers crossed you get a result from HSBC.