Turned down for Natwest Mortgage...HELP!!!

lindens

I would do both.
If it really is your dream house then live on baked beans for a month or two and save every single penny towards a bigger deposit. in the meantime shop around in case you can find another lender who is happy with a FTB with 10% deposit.

betmunch

What has your broker advised you to do? Its his job to help you through these decisions.

Thrugelmir

Not sure why "they" are holding you to ransom. Sensible lending helps everybody. Overstretching on finances for what is a long term purchase isn't advisable. As paying the mortgage is only one element of home ownership.

I would save and increase the size of the deposit. House prices aren't going up, in many areas they are falling slightly. So you may find the property you wish to purchase comes within your grasp far quicker than you think.

alexia88

Your situation seems similar to ours, my partner and I originally went through a broker who said that we would only get an 80% LTV with a lender, we began looking elsewhere and applied directly to Natwest for 90%, turns out it is exactly the same deal as the broker tried to arrange for us.
Going through the broker we could get 80% but going directly with them on an FTB mortgage, they have approved 90%.
The broker questions just weren't in depth enough, when we spoke to Natwest directly they took in to account that next year my partner is being made a director at his family business and next month my pay will increase by £5000 per annum because of passing probation.
It may be worth asking directly.

Thrugelmir

alexia88 wrote: »

The broker questions just weren't in depth enough, when we spoke to Natwest directly they took in to account that next year my partner is being made a director at his family business and next month my pay will increase by £5000 per annum because of passing probation.

That's a material change in financial circumstances. Which wouldn't apply to the majority of mortgage applicants.

DVardysShadow

cankle wrote: »

Just got back from my broker, it seems I am absolutely fine, nothing wrong with my credit report, my overdraft isnt a factor either! the reason Natwest have given is they dont want to do a 90% mortgage for a FTB!!!! They have said if I can raise the deposit to 15% then they will agree it!! I feel like I am being held to ransom, I can at a massive push given maybe a month raise the extra money but this is seriously making me ill!! Should I just tell them to go whistle and try another lender at 10% or try and raise the 15% (which will push me to my extreme limit!, and could possible make me struggle with solicitor fees etc)

Basically, this is good news. If your budget past buying will allow you to save, then I would suggest stretching to 85%, because although it will be a stretch in the short term,you could recover fairly quickly. But if you would be tight for money after buying, then one of the the worst things you could do is hamstring yourself with inadequate finance.

holly_hobby

cankle wrote: »

Just got back from my broker, it seems I am absolutely fine, nothing wrong with my credit report, my overdraft isnt a factor either! the reason Natwest have given is they dont want to do a 90% mortgage for a FTB!!!! They have said if I can raise the deposit to 15% then they will agree it!! I feel like I am being held to ransom, I can at a massive push given maybe a month raise the extra money but this is seriously making me ill!! Should I just tell them to go whistle and try another lender at 10% or try and raise the 15% (which will push me to my extreme limit!, and could possible make me struggle with solicitor fees etc)

Well that is good news (sort of !), quite why they wouldn't reveal to your broker that they simply required a larger deposit is quite beyond me ... maybe they like the intrigue of it all !!!

Anyhoo ... IMHO if you have the capacity to save a bit more, it really will be the best approach, you have said its achieveable, and with lower borrowings for day 1, you will be actively saving your interest charges from outset.

Good luck .... watch those pennies now

Holly x

cankle

Erm ok just got a call from my broker....its gone to appeal???? so whats that all about, I asked if this was a good sign and she didnt know as it has never happened to her before!!!! :shocked:

GMS

Natwest will allow a FTB at 90% subject to credit score and affordability.

Why would your broker call you and say Natwest have agreed to 85% only to say it has gone to appeal. Did they agree it or not?

It is possible your credit score was not high enough for 90% but Natwest BDM's make it clear that 89.9% id more likely to be accepted. A broker should know this.

Obviously I do not know your details but something doesn't seem right here. Go back to your broker for clarification of exactly what has happened.

cankle

Just spoke to broker (again!) it has gone to appeal for 90%. I feel sick to my stomach, wish to god someone would make a decision but now I have to wait, hopefully I will hear something tomorrow but it could be Friday!!!!