We're about to lose our buyer...help!

ASI

We sold our house in April to a young lady...everything went through smoothly until her offer expired/withdrawn and she had to re-apply.

The new mortgage application with Natwest has failed credit score due to a default of £60 outstanding Orange bill. She took this out for a friend, who failed to pay it and knew nothing (apparently!)

She has a 25% deposit of around £40k and meets all other criteria. Are Natwest likely to agree this? Apparently, credit score is clear and she has sent an explanation letter but my Mortgage Advisor has said Natwest WILL not assist if you have adverse credit history.

We are in the process of buying a repossession (which we will have to pull out of) and are set to lose around £1000 in the buying and selling.
:(
Any guidance or help greatly appreciated. It's driving me insane but we'll have to wait until Tues for final decision.:(

Thrugelmir

ASI wrote: »

The new mortgage application with Natwest has failed credit score due to a default of £60 outstanding Orange bill. She took this out for a friend, who failed to pay it and knew nothing (apparently!)

Usual to obtain precise reason for a decline from a lender. Given she took the agreement out with Orange then she would have been aware of non payment. So doesn't sound plausible.

ASI

Has this been submitted?

Simon_gloster

Its not something you have control of.

If natwest have declined on score, they will usually stick to that. Should an appeal be made it'll have to go through underwriting which itself may take a week or so.

ASI

She says she did not have any letters (or maybe they were passed on to her friend) other than that, she says she has a good credit score.

I don't think Natwest would accept this, but has anyone had a similar experience where they have accepted an explanation?

I know other lenders are more flexible...

harvey115

Tell her to try Halifax perhaps as they are far linient high street lenders.

I think it would be best to use a broker and get a better rate + good turn around in a better controlled environment.

I am not sure whether your buyer will listen to you but ask her to call L&C and she should be able to secure a mortgage if not with Natwest, possibly better rate then them.

holly_hobby

If she has the default, all the contratual docs and DN would have been sent to her, at her address - so as Thurls. says, her claim of no knowledge is stretching it.

This all depends on how old the default is, and the LTV.

First things she needs to pay it off, get it satisfied with a cert 0f satisfaction from Orange take up the issue with friend separately.

Then TBH and as time is of the essence, she needs to sit with a whole of market broker for them to make some phone calls to try and place this via their lender contacts.

However, as I say depending on the history of this default and the LTV, there is no gte that she will find a mge home in the short term - so prepare yourselves.

Wish you well

Holly

DVardysShadow

holly_hobby wrote: »

.... However, as I say depending on the history of this default and the LTV, there is no gte that she will find a mge home in the short term - so prepare yourselves.

If I were underwriting, I have to say that I would regard anyone who takes out credit agreements for someone else as something of a loose cannon. Their grip on financial affairs is as weak as that of the person for whom they are fronting the phone contract - perhaps more so because they allow themselves to be dragged down by other people's credit issues.

The lesson has to be don't front credit agreements for people who cannot get credit in their own name.

ASI, in your position, I would be explaining this to the buyer and putting my property back on the market, until such time as the buyer could produce a letter from the lender stating that they were now satisfied.

Thrugelmir

ASI wrote: »

We sold our house in April to a young lady...everything went through smoothly until her offer expired/withdrawn and she had to re-apply.

Why has the sale taken so long?

holly_hobby

DVardysShadow wrote: »

If I were underwriting, I have to say that I would regard anyone who takes out credit agreements for someone else as something of a loose cannon. Their grip on financial affairs is as weak as that of the person for whom they are fronting the phone contract - perhaps more so because they allow themselves to be dragged down by other people's credit issues.

The lesson has to be don't front credit agreements for people who cannot get credit in their own name.

ASI, in your position, I would be explaining this to the buyer and putting my property back on the market, until such time as the buyer could produce a letter from the lender stating that they were now satisfied.

Re UW - the story re the "friend" situation wil really carry no weight, (as the debt actually "belonging" to A N Other is just hearsay and could not be proven by the OP in any event) - the debt is in her name, its the buyer whom entered into the contratual arrangement with the provider and as far as the legalities are - its she whom has the debt.

As I've already stated, when the default was registered, if its to be satisfied, and the LTV will determine if there is a home for the buyer in the shortterm.

Again, a broker who knows their eggs and lender contacts will be invaluable for a speedy determination on the future of the purchase.

Hope this helps

Holly

Judith_W

We've been rejected for a leading rate mortgage due to a £5 default we knew NOTHING about - no letters or anything guaranteed!

They criteria just refuses any defaults, even of that low level.

We did get a mortgage with Barclays who disregard defaults of under £150 who were the next best rate.