FTB Mortgage declined by underwriters

Stanoinnit

Hi.
I'm currently struggling to understand something so I'm hoping someone will be kind enough to help me!!

I had a mortgage in principle through Natwest, passed the affordability, passed the credit checks etc. Then went to the underwriter and when I rang up to check the progress was informed the underwriters had declined my application (they hadn't actually informed me of this, I had to ring up). I was originally told it was due to insufficient funds? But when I rang up later in the day I was told it was due to bank account conduct? Looking into it with a (very unhelpful) advisor I have two charges on my bank account from August/Sep last year where I've been charged 38p interest on a £200 overdraft which has taken me 31p over my overdraft limit and caused a £12 charge. This is why the underwriters have therefore declined it. Now this seems a bit unfair to me? But I do understand that arrears are arrears and this counts as making me more risky....the advisor said they look for 6 months clear....which would be in 4 weeks time for me....but the application has already been declined. I'm speaking to a manager tomorrow but is there anyway of asking for this to be looked at again by the underwriters or is it a done deal once it's been declined? I'm new to all of this but having picked a house and instructed a solicitor I am in full panic mode now. I don't want to lose the lovely little house I've found!

Help?!

ACG

10% deposit?

Its pretty hard going with any adverse.

Im presuming you bank with natwest?
Go to another lender, they will ask for 3 months statements at most usually. Also get a copy of your credit report to check if any adverse is showing.

Stanoinnit

I don't have good credit according to Experian but I passed the credit check? These arrears don't show up on my credit report but these are the ones I am being told are the reason behind the decline. I do bank with Natwest yeah, which was why id gone with them. Is there any way of persuading them to look at the application again do you think? Also will this decline go against me as far as other lenders are concerned?

Stanoinnit

Yes 10% deposit

ACG

The application will show on future credit searches.

Natwest have access to more info as they have your banking history - which isnt always a good thing as you have found out.

I would suggest you get your credit reports and take them to an advisor to get proper help rather than making more applications without knowing.

Stanoinnit

So I assume other lenders will not look favourably on this? Have I just been done out of any hope of getting a mortgage? Is there an option to have a guarantor?!

shonzyd

'Dont have good credit' - what do you mean by that?

Stanoinnit

I mean when I click into my account on credit expert it says 'poor' on the barometer thingy? I've cleared off all my credit cards, I have a personal loan and I have 2 late payments in the last 3 years relating to a mobile phone contract. I've never defaulted on my loan though.

ACG

ooooo At 90% you might struggle if you havemissed/late payments.

Natwest can see 6 months ago from their systems which had you being over your overdraft. Other lenders wont have the same access as they do so they may be more lenient.

I would say its hit and miss to be totally honest. I wouldnt be 100% confident. But i would say there are better options than natwest.

Stanoinnit

Other lenders that I spoke with wouldt lend me anywhere near the amount of money Natwest would? Which is why I plumped for them. It all feels really hopeless at the moment. Buying a house for the first time by oneself is really hard like!

Dave_Ham

Hi there,

Do not panic, but this is incredibly unlikely to go anywhere with Natwest. It is unlikely another underwriter will overrule the first, without new information/documents provided.

Take the credit report you have (assume Experian) and get Equifax (the 2 pound version) to a decent broker.

Employment not withstanding (or any other unknown variables) I would fancy a solution with 10 percent deposit, based upon the 2 charges you mention...

Any other naughties in there and all bets are off, but based upon this alone I think you can expect a solution on similar terms to natwest.

Good luck