Application accepted but referred....???

indigo9

Can anyone advise please? Brief history is that husband had a house repossessed 7 years ago before we met and current house is in my name only.

We now want to move and I haven't approched current mortgage company (Santander) about putting husband on mortgage and porting current product across even tho is a fab rate of lifetime +0.99%, as I know their lending criteria states they will automatically decline if previous repossession.

Instead we applied to nationwide, got an AIP and went through the full application process with the mortgage adviser this afternoon. She did a full credit search and application went through as accepted. However, she said that she needed to refer to underwriting due to us putting husbands repossession on application form - she didn't seem to think it would be a major issue as application passed credit check and came back as accepted. So, why does it now have to be referred and what is the likelihood of them declining following this?

Also, as the credit check was fine, should I risk calling Santander and see if they will accept so that we can port fab rate across - I'm a bit loathe to lose it!

Thanks!

kingstreet

The referral is because Nationwide's lending criteria says this;-

Credit Referencing
All applicants are credit referenced before a mortgage is offered usually at Decision in Principle stage.

For your client to be accepted:

The credit reference must cover all addresses for all parties in the last 3 years.
The applicant must not be an undischarged bankrupt or must be discharged for at least 12 months before we can accept an application.
Normally there should be no history of a repossession, either voluntary or enforced
Multiple credit references over a short period may adversely affect your client's credit rating and you should explain this to your client before requesting Nationwide to undertake a Decision in Principle.

What the implications of "normally" might be I don't know.