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Northern Rock App - bit complicated
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snow_ball
Posts: 283 Forumite
I have a friend who has applied for a 90% mortgage with her OH through a broker and were approved by Northern Rock.
A few complications :
She has a mortgage with an ex but has not lived there for over 3 years (ex is now engaged with a baby). Ex can’t/won’t get her name removed for various reasons (it’s not very amicable) but this was made clear at application stage and they still passed affordability.
Her OH also has a mortgage with an ex, but the ex is barely in contact, he still occupies the mortgaged flat and my friend lives with him in. Again, this was made clear at application stage, they intend to let the flat and have obtained consent to let which has been provided to NR as requested.
Once all of the information was provided, the valuer was instructed and this was carried out a couple of weeks ago. The property being purchased is in need of a lot of work, and they were told verbally that there were some conditions on the report and a retention would be held. Nothing unexpected, they understood this would be the case when they made the offer to buy the house.
They have been chasing their broker for the formal offer over the last couple of weeks and been told that the valuer’s report is holding things up, nothing to worry about. But they are now worried that NR are about to “pull the plug”. Friend suspects that something relating to the mortgage with her ex is causing the problem, but she's recently transferred a couple of credit cards and I’ve said this is likely to be the issue. Although I would have thought her broker would have told her this, so I'm not sure if there's anything else in the background.
If it is because of the new credit being obtained, would they now outright decline, or would they look at it more closely? The new credit is technically replacing old credit and she’s being financially sensible by obtaining best possible rates. In addition, a £350pm loan has come to an end since the mortgage application started so overall, they would now easily pass the same affordability calculation.
Anyone familiar enough with NR to offer any advice? Apologies for the long post and any vagueness (I'm a first timer!)
A few complications :
She has a mortgage with an ex but has not lived there for over 3 years (ex is now engaged with a baby). Ex can’t/won’t get her name removed for various reasons (it’s not very amicable) but this was made clear at application stage and they still passed affordability.
Her OH also has a mortgage with an ex, but the ex is barely in contact, he still occupies the mortgaged flat and my friend lives with him in. Again, this was made clear at application stage, they intend to let the flat and have obtained consent to let which has been provided to NR as requested.
Once all of the information was provided, the valuer was instructed and this was carried out a couple of weeks ago. The property being purchased is in need of a lot of work, and they were told verbally that there were some conditions on the report and a retention would be held. Nothing unexpected, they understood this would be the case when they made the offer to buy the house.
They have been chasing their broker for the formal offer over the last couple of weeks and been told that the valuer’s report is holding things up, nothing to worry about. But they are now worried that NR are about to “pull the plug”. Friend suspects that something relating to the mortgage with her ex is causing the problem, but she's recently transferred a couple of credit cards and I’ve said this is likely to be the issue. Although I would have thought her broker would have told her this, so I'm not sure if there's anything else in the background.
If it is because of the new credit being obtained, would they now outright decline, or would they look at it more closely? The new credit is technically replacing old credit and she’s being financially sensible by obtaining best possible rates. In addition, a £350pm loan has come to an end since the mortgage application started so overall, they would now easily pass the same affordability calculation.
Anyone familiar enough with NR to offer any advice? Apologies for the long post and any vagueness (I'm a first timer!)
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Comments
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Sorry, it is almost impossible to tell from the information provided.
NR are being incredibly selective at the moment, although I suspect your mortgage broker will or should know more than it appears you currently know.
Push your broker hard.
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for replying, hopefully her broker will get full information in the next couple of days.0
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