Any FTB Mortgage Refusal Advice Greatly Appreciated

kl.collins29

Hi all,

I am seeking some advice on a rather scary looking prospect regarding our mortgage with Natwest which has just been rejected.

Current situation is that we had a mortgage in principle agreed by appointment at a NAtwest branch, offer accpeted on a property, solicitor instructed and tenancy on rented accommodation up in 4 weeks.

Was a little worried about time scales, but were reassured that as there was no chain either way it *should* all be ok, but were confident as could source temporary accommodation for a week or so until completion.

Late this afternoon I had a call from Natwest to say the mortgage had been rejected. This is because OH is 'too relian on OD and had one instance of returned items, which in branch advisor said could be resolved as the bank itself was partly to blame. I would like to know which way to turn now. Being so late on a Thurs night I am limited to what I can find out so any help would be much appreciated.

Will this rejection prove fatal to our credit score? Is it worth applying elsewhere, or will we get the same response, and in doing so will we again harm the credit rating? The deposit is currently in a safe, I assume putting this in his account would be beneficial, but is it too little too late? My current account is with Lloyds TSB, always been in credit, no issues, is this worth a shot? Is it advisable to inform solicitor and estate agent we intend to pull out, or sit tight if there's a glimmer of hope?

We are both FTB, joint income of £38.5k, plus bonus and over time. £14,500 deposit, offer accepted at £145k. Mortgage with Natwest, fixed 2 yr FTB offer.

Any help would be much appreciated, many thanks in advance.

sheilds

Don't panic -exactly the same thing happened to me and my hubby a few weeks ago.I had banked with the same bank for 15 years -no issues-as I thought-we both had good jobs and good credit reports. The bank declined our application citing that I had used my interest free overdraft too regularly-the advisor (who had a few days previously told us we had a good strong case)could barely look me in the eye when he told us and I felt so ill as we had an agreed sale on our home and an accepted bid on the new house.

Make an appointment tomorrow with an "all of market" broker-I can't sing their praises highly enough.They put us at ease ,explained that the banks sometimes "cherrypick" their customers ,he called one of his colleagues to help with the case when he saw how annoyed we were and within minutes he had us accepted for a deal much better than the banks had offered-I was so releived I burst into tears and we move in to our new home next week-hopefully- so don't worry-you'll get sorted.:)

kl.collins29

Thank you for the reassurance. I will do that first thing in the morning.

cankle

I too was rejected by Natwest (I'm a FTB and have banked with them since 1993) they stated they didnt want to lend 90% to FTB then I advised I could go to 85% this then went to appeal at 90% then after 10 agonising days they rejected me again this time stating my credit report (which is spotless!!!) I ended up going to Abbey/Santander that accepted me straight away no problems they have now just done the survey and have sent my offer out!!! I totally agree with previous poster get yourself to a whole of market broker they can tell you what lenders are likely to accept you. Best of luck, I know exactly how you feel, I didnt sleep for two weeks and felt sick constantly, I thought I was going to lose the house of my dreams I really did but it has come good in the end!!!

Wh05apk

Don't waste your time with Nat west, their procedures are awful, very slow and cumbersome. Their rates are rarely best anyway, as has been said speak to a broker, might be worth getting a copy of your credit report beforehand (DO NOT PAY FOR A CREDIT SCORE, IT IS A WASTE OF MONEY, AND IS MEANINGLESS) so the broker can make sure there are no issues.

Someone like Abbey will probably be suitable, they have good rates, and probably won't need bank statements.

kl.collins29

Thank you for advice. I will call them as soon as they open. I have the Equifax reports for both of us. Everything is green other than my electoral roll, although I do vote. I have contacted the council to amend so hopefully this will be cleared up and not impact on the application. Thank you once again

SusieWoozy_2

we've been declined too for a mortgage :-( we don't 100% know why as yet hopefully find out today but apparently its something to do with a linked address. Got a full copy of the credit report and it doesn't show anything we didn't already know when we got the decision in principle.

Nightmare :-( Hope our mortgage lady who is a gem can find something else somewhere else

kl.collins29

SusieWoozy wrote: »

we've been declined too for a mortgage :-( we don't 100% know why as yet hopefully find out today but apparently its something to do with a linked address. Got a full copy of the credit report and it doesn't show anything we didn't already know when we got the decision in principle.

Nightmare :-( Hope our mortgage lady who is a gem can find something else somewhere else

Yes, we hope to find out more today too. Although, I am not holding my breath. They were very unhelpful last night, I'm sure I was seen as just another 'x' on a piece of paper.

SusieWoozy_2

well i hope all goes well, I just wanna know what the problem is so we know exactly where we can go next... or not as the case may be!

kl.collins29

Natwest just called. They are now saying it's not due to my partners account, but mine too! I do not have an overdraft, always in credit, never had anything bounce. They seem to be fobbing me off all the time. Advised to get an Equifax report because that will show adverse credit. Conveniently put me on hold when I said I have it right in front of me and EVERYTHING is green. Then tried to say it was out of date, although only printed yesterday. Your replies have given me some hope so if we should ever get a mortgage I will be switching current accounts etc from Natwest immediately. I assume this will impact on any further mortgage applications if I was to do it now.

SusieWoozy_2

well we've found out what are issues are.... my boyfriend's lovely ex forgot to tell him 5 years ago that a CCJ was made in both their names due to an over payment of child tax credits, so the first he's known about it is today. SO if we have any hope of getting a property he has to clear the ENTIRE debt and wait for a certificate to come through to say it's cleared but the CCJ mark will still remain on his file :-( boohoo so looks as though we might have to put our house purchase dreams on hold... ex's huh... they've got ALOT to answer for!!!!

PS dont change to HSBC if you swap accounts, I bank with them and they are nothing but trouble!!