Will i be declined mortgage?

lottie0810

My partner and i have completed a natwest mortgage application for a newbuy 95% mortgage over the phone and been excepted, im guessing this means in principle? We received the pack in the post with key facts etc and signed it and returned to a natwest branch where they certified our ID and took bank statements/payslips etc and said they would send it off.
I am now worried it is going to be declined as we had 1 returned direct debit on the 1st Oct which shows on our bank statement. The direct debit has now been paid and i have checked my credit file and it isnt showing as a late payment.
Do you think this will cause a decline? This is our 2nd mortgage as we have sold our property and have bought another. We have never missed a payment on our mortgage, loan or any other commitments.

Your comments would be much appreciated as i cant sleep at night at the moment worrying about this!

Thanks

Dave_Ham

Hard to call, as personally I have not done too many Newbuy applications and certainly not with Natwest.

They will see it and my personal opinion is that if this is a trend it will be an issue, as a one off it is unlikely to cause a problem.

Not really sure on the criteria though, although they have credit searched you as part of the AIP.

Good luck

kingstreet

I would imagine this may be a problem if you bank with NatWest, or if they ask for bank statements as part of the underwriting process.

It's a case of wait and see, I'm afraid.

lottie0810

Thanks Dave, we couldnt use our mortgage broker to do the application either as it was a direct only deal. I think alot of the newbuy mortgages are, natwest were our only option as they were prepared to lend us what we needed as they dont take off loans etc.

What are they actually looking for at this stage? Do they just need the payslips and bank statements for proof of income etc?

The returned DD was a one off, we have never ever had it happen before and not sure how it happened either, very frustrating on our part.

Fingers crossed it all works out as we have no other option if it doesnt!

Thank you for replying, means alot!

lottie0810

Yes they asked for 3 months bank statements along with ID so if they look closley enough they are going to see it. Just hope they dont penalise us for this and this only...arrrgghhh going out of my mind! Natwest should have received our application and docs today, when do you think we will hear something?

Thanks

GMS

You say Natwest were the only option as they do not take off loans.

This may raise questions from them when they see the statement. If you are unable to keep up with current comnmitments then they may take a view that you are over indebted already and likely to struggle with the mortgage. At 95% there is no room for margin from the lender.

Keep your fingers crossed.

lottie0810

This is the 1st time this has ever happened, we use an account for bills and we have an account for leisure, for some reason our account for bills was £10 short at the time that this DD should have gone out. As soon as i realised i called Halifax (loan company) to pay and they said dont worry we will try again in 5 days which they did and the payment went. My credit report shows that it was paid and it isnt showing as a late payment.

We have a £18k loan, other lenders would only lend us £160k as they take off the loan or whatever they do but Natwest dont do that & have agreed to lend us £174k (we need £170K)

Surely the credit check has already been done at AIP stage so they know about our loan and outgoings, if they wernt prepared to lend us due to affordability why wouldnt they say that at the AIP stage?

Its going to be a long wait!

GMS

You have passed their affordability calculation but when the underwriter sees a bounced payment on the bank statement there could be an issue. As you have said this isn't showing on the credit search so won't have been picked up prior to a bank statement being looked at.

Hopefully they will see it as a one off.