Natwest mortgage referred, please help!

Lildozey

I'm new to this so please bare with me.
We are selling our flat, SSTC, and have had an offer accepted on a house we would like. We are porting our existing mortgage across as we are on a 2yr fixed and have 10 months left, rather than early repayment. We had everything agreed in principle but on phoning up last night to get everything put through they have said our application has been referred because of my partner needing to supply his payslip, which we already knew we would have to do, and for some other reasons. On checking his credit rating today we find he has an outstanding default from 2010 of £35 to 3mobile, which of course he paid today ASAP, but will still be showing on Equifax, his rating is at 415 at the moment, mid way in the Fair category with nothing else showing apart from a few late mortgage payments about 2.5 yrs ago. He also has an overdraft on another account with Natwest of 1,200 of which he had only paid off 200. Upon hearing this last night I have now paid off 500 of it, so it stands at 500. We are now very worried at what the referral means and wether the default and overdraft will go very against us. I believe my credit rating is fine, never had late payments, credit card is paid off, and credit agreements have all been paid off too. I have been with my employers for 9 yrs, and we have more than enough disposable income to afford the new house.
I think our LTV is about 78%, we are selling for 150,000, have about 98,000 to port over and a new mortgage of 63,000 with a 44,000 deposit.
Any advice would be much appreciated, thank you.

Thrugelmir

Lildozey wrote: »

with nothing else showing apart from a few late mortgage payments about 2.5 yrs ago.

This will score heavily against you. Late payments on a mortgage suggest that your finances aren't well managed from a lenders perspective.

If you can afford to move property. Why are you struggling to repay the overdraft fully?

All these factors will weigh on an underwriters mind when assessing your application.

Lildozey

It is my partners overdraft from his time at uni which he has kept and dipped into for the past six years, never paying back, not as disciplined as he should be. The late mortgage payments are from a previous property he owned with his brother (who rather stitched him up and left him in the learch with mortgage payments) which he sold May last year and we then brought our flat together. None of these were issues when we got our mortgage together last year and must have been apparent to them then too. I was put as lead person on the mortgage because my credit was better and I earn more than my partner. So although our combined income is great, his alone is not, and only recently have I managed to get him to agree to sharing our money equally, so he can pay off this overdraft.

Lildozey

Is there anyway to help the situation? If we borrowed 500 from a lovely willing relative to get the account closed would that help? Also after he had paid the default to 3mobile they said it could take up to a month to show as settled on a credit search, is there anyway to make Natwest aware that this is settled, maybe a letter from 3?
Although I have the money to pay the other 500 for him, it is the money need for the valuation and solicitors searches if all goes ahead, catch twenty-two!!!

Thrugelmir

Lildozey wrote: »

None of these were issues when we got our mortgage together last year and must have been apparent to them then too. I was put as lead person on the mortgage because my credit was better and I earn more than my partner.

Situation has changed rapidly in past few months, let alone a year. As the wider debt crisis impacts on day to day activity.

A mortgage application is joint and several. So there's no lead partner on the application as such. All parties will need to meet the required underwriting criteria.

Lildozey

That's just the line the Brooker used to hook us in then! Thank you for you help, do you think a letter from the mobile company about the default and closing th overdraft account may help or is it in th hands of the gods now? We have a little time as we only spoke to them on the phone last night and they said hey would send everything in the post for us to fill in and send back.
If its not meant to be, it's not meant to be, but would it be worth going to a Brooker if we do get declined and trying another lender?

Thrugelmir

Don't give up hope yet. Whatever the outcome. Going forward its worth keeping your credit records in good order. As too often now a momentary lapse comes back and bites at a later date.

Lildozey

Yes I agree, think my partners beating himself up slightly over his wayward days, but hey, one door closes another one opens, all we can do is try our best to explain and rectify the situation and then see what happens. Thanks again, will keep the thread updated.

Dave_Ham

Hi there,

I understand this is stressful and actually your broker is correct on some lenders scoring the first applicant harder than the second. Although the commitment is joint, it still does make a difference.

In your favour is current well maintained mortgage with Natwest, fair deposit and hopeful that you bank with Natwest as this will help..

Against, is the default and previous historic missed mortgage payments.

On balance, I think they will accept you and if they do not you will get this through with another lender if you can and want to suffer the Early Redemption Charge.

I would answer the questions they may ask, rather than answer your own and find issues.

Good luck