Likelyhood of mortgage

jenny2115

Son has been declined from nationwide for mortgage, they told him there was nothing bad on the files and that their score was just a bit low yet and to keep saving, with the details below is it worth applying anywhere else or just to sit tight and save a bit more,

details are

First time buyers

Him 24yr old
Her 22yr old

Both on electoral roll, him 19yrs same house and her 18 yrs same house

House value £85000
Deposit £8500
Mortgage needed £76500

His income £39698 same employer 8yr
Her income £16100 same employer 4yr
Joint income £55800

outgoings

His
car finance £380 /month 4 years to go
credit cards £4500 pays £450 / month
overdraft £400


Hers
Car loan £199/ month 1 year to go
Credit card £400 pays £50 /month (just took out about 3 months ago)


They have done their experian and his score is 900's hers is 800's, he has a 4 late payments ranging from 24 - 48 months ago when he didn't know any better, nothing since everything is green and hers is all green too with no late payments.

Any advice for them would be appreciated.

regards

Dave_Ham

Hi there,

Nationwide are a tad fussier than some other lenders, although many of the lenders appear to have toughened up their 90% LTV scorecard in recent weeks..

Do not let them apply at random though, best to get a broker or do some serious research..

Good luck

jenny2115

Yeah thats along the lines we thought, they have decided to go to a broker at the weekend


Thanks for your reply

jenny2115

Sorry another quick question is the late payments from a few years ago liable to be the problem or the amount of credit commitment he has?

Regards

Dave_Ham

Neither are really likely to cause an issue independently, although in terms of Nationwide credit scorecard I would suggest the combination has thrown it out at 90%.

It is a chunky credit commitment for the car HP, albeit the incomes are strong.

A broker should sort this for them (not necessarily an Estate Agent one)

All the best

jenny2115

Thank you that's appreciated, hes planning on paying it all off as soon as he can.

Regards

Let_Us_See

Even when taking existing monthly commitments into account affordability is certainly not an issue. Therefore, problem lies elsewhere, and previous late payments (is overdraft authorised?) obviously an issue with Nationwide at 90% LTV.

Agree with previous posts that this still should be acceptable to other lenders.

jenny2115

Thanks for your reply Let us see, yes overdraft is authorised and he has never went over it.

he spoke to a broker this morning showed him their experian reports, p60s, payslips etc and he thinks nationwide are just being selective and says hes had a few declined from them recently, he reckons he will be able to sort him out with another lender, so he'll take it from there, they have another appointment with him at weekend.

jenny2115

Just to give you an update, they have now been accepted from halifax for the 90%.

Thanks for your replies

Crashandburn

Good to hear. Virgin Money have also been good at picking up failed credit scores from the Nationwide. Seems Nationwide are trying to cut back on their 90% loan to value mortgage book at the moment.

ValHaller

jenny2115 wrote: »

outgoings

His
car finance £380 /month 4 years to go
credit cards £4500 pays £450 / month
overdraft £400


Hers
Car loan £199/ month 1 year to go
Credit card £400 pays £50 /month (just took out about 3 months ago)


They have done their experian and his score is 900's hers is 800's, he has a 4 late payments ranging from 24 - 48 months ago when he didn't know any better, nothing since everything is green and hers is all green too with no late payments.

Any advice for them would be appreciated.

regards

Why did she take out a credit card 3 months ago? If it was to 'improve her credit score' it was probably a complete waste of time. For both of them for a mortgage, paying off the credit card in full each month is the way to go.

As for the Experian so-called 'credit score' do not spend good money on this. All that is important is the actual raw information on the Experian credit record. Each lender has its own way of scoring and mortgage scoring is different from consumer credit scoring - the Experian so-called 'credit score' is probably biased towards consumer credit.