Turned down by natwest help!

stinkypluff

Hi,

We've applied for a 1st buyer mortgage, raised a deposit with homebuy (26% deposit) So we're finding a mortgage for 74%. In summary the mortgage is 133K, good credit score, bread winner earns 30K, in addition receive child tax credit etc (Which natwest accept!) and in additional bread winner received a £2,500 bonus every year.

We have a credit card of £4,500 and and outstanding loan of £800 also.

Natwest have refused the application based on: Based on affordability - they won't accept bread winners bonus, infact they will only accept 25% of the bonus and not the full amount! Despite the letter of confirmation from the employer.

If we cleared the credit card and loan totally, do you think this would alter the decision?

If not, what else could it be? We know that this lender is our only options, so we can't exactly "shop around".....

Thanks for reading

Thrugelmir

Your employer is unable to confirm your bonus. Only the potential to earn a bonus.

Clearing your credit card will improve your chances in the future. Though presumably this will raise your LTV above 75% in the short term.

On your salary and with dependents to support, you will be above affordability levels with mainstream lenders.

Tackle your debts then get saving.

stinkypluff

Thanks for your reply, no the LTV will still be 74%, we're not borrowing money to pay it off, just paying it off outright.

What do you think our chances are? Paying off these debts will give us an extra £190 a month, therefore making it more affordable?

Thrugelmir

stinkypluff wrote: »

Thanks for your reply, no the LTV will still be 74%, we're not borrowing money to pay it off, just paying it off outright.

What do you think our chances are? Paying off these debts will give us an extra £190 a month, therefore making it more affordable?

When one of the boards residents brokers will be able to pass opinion on this.

Bump the thread during the day if there's no answer tonight.

ACG

If they have said that is what the issue is then it should be fine. But ask them the question, they will give you an answer. It sounds like it would do the trick but just double check before hand.

stinkypluff

Thanks guys! My mortgage advisor is awaiting a call from a natwest manager tomorrow, so fingers crossed. Have you ever experienced this sort of this ACG/anyone?

ACG

Ive only been doing the job for around 6 months, im not the most experienced.
Not really though, all my clients have been accepted. Ive have a client refused for the full amount they were looking for on a remortgage as that incorporated extra money for doing the house up, the lender offered an amount inbetween what they needed and wanted which was fine...but the lender told me why at the same time as advising me they wouldnt offer the full amount.

Dave_Ham

Hi - not sure why they are waiting for a call, they should be able to action this online unless there is something else going on they need an answer to.

They can change the AIP or application easy enough with Natwest online to reflect these being paid off.

In terms of whether this makes a difference or not, would need full sight of the case but I would certainly expect it to make a big enough difference if the case was marginal.

Fingers crossed for you - I would expect an answer today or get chasing..

Let us know how you get on?

vaselinequeen

Hi stinkypluff, how did you get on with Natwest? I am also applying to them as a first time buyer so would be interested to know.

stinkypluff

Hi all.
Natwest have said if we pay off the outstanding debts then it's a go ahead! )
Good luck vaselinequeen. It is so nerve racking isn't it!

I don't want to go ahead paying off the credit balances only to find that Natwest decide to withdraw their offer......I'm trying to get this agreement in writing, my mortgage advisor has said he doubts whether he can get this. Has anyone had any experience/ advice regarding this?

Dave_Ham

Sorry but you will not get this in writing - well not anything formal.

To be honest, it is better advice to pay these off in any case from a long term point of view, or from any lenders perspective.

Fingers crossed for you..