First Time Buyer Morgage Declined

Rubymoonboots

Hi all,

I am desperate right now, we had Agreements in principle from Natwest but then our application got denied for 'adverse items on the credit report'. We just got a free credit report and we are both showing as having no county court judgements etc and we have both have a score of excellent! Do we go and try with another lender??

The mortgage advisor says it could be that because my partner had gone over his overdraft limit by a small amount (from looking at his bank statements) but he hasn't had any charges from his bank and the credit score shows all green with no penalties.

somethingcorporate

Have you checked your reports with all agencies? There are 3 and you need to make sure each is clean. A statutory report costs £2 each.

Have a look here for more information: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

AskMeAnother

does your partner bank with Natwest? I have known them turn down applications like this for the exact reason you mentioned.

Or did you send bank statements in with your full application? Again if they see unauthorised overdraft usage they will sometimes decline on "bank conduct".

If your credit file shows as being clean then maybe try with another lender who doesn't ask for bank statements.

If you post some further info regarding income and loan to value stuff there are plenty or brokers on here who will give opinions.

Good luck!

Rubymoonboots

Thank you for helping us!

He banks with HSBC and the Natwest mortgage advisor saw his bank statements while we were making the application.

We have a 18.5k Deposit and were requesting 165k for a £185k house.

The natwest advisor says she will take a look at the credit report but that she probably wouldn't able to appeal.

AskMeAnother

ok so there are several lenders offering 90% mortgages right now.

Depending on your income you might be able to try one of those.

From your wording it sounds like you went directly to Natwest. They have some reasonable deals right now but I would always say check out the competition by speaking with a whole of market mortgage broker. They will be able to put you in the picture with regard to other options you may have available to to.

Rubymoonboots

We also spoke with the broker from the estate agent as they saw all of the market but still decided to go with Natwest as the rate directly with Natwest was better than the one through the broker.

Should we go back to the broker and see what they advise?

AskMeAnother

which agent was it?

Rubymoonboots

Cubitt and West

AskMeAnother

ok, a quick look on their website (leading to their mortgage broker's own website) would suggest that they offer a free advisory service.

It doesn't say anywhere that they are Whole-of-Market or independent, so just check to find out if there are any fees later on once you agree to arrange the mortgage with them. For a mortgage of this size you will find plenty of brokers who won't charge for their services.

But I would say if you got on ok with the broker and they're not gonna charge you there should be no reason really not to go back them.

Even if you wanted to post on here what deal he/she recommends there will be plenty of people ready to let you know if there is something better etc.

Rubymoonboots

Thank you so much for the advice! I am going to call them now and ask these questions!

rising_from_the_ashes

If you decide to go to another broker, try which? http://www.whichmortgageadvisers.co.uk/

They will look at the whole market, advise of the best product (even if it's a company they don't deal with) and it's free.