FTB mortgage application delined

kingstreet

If you deal with someone who works for a lender, they tend to rely on a "computer says" approach, while brokers think of different lenders' criteria while they are taking the information for your case.

All the freebies in the world aren't going to benefit you much if the lender doesn't actually want to lend to you. The Nationwide rep may hope you'll keep all the "second sale" stuff you've picked up along the way...

As they'll be targeted for that too!

kingstreet

TurkeyShoes.

Have you actually established the reason for the Nationwide decline? I'd be surprised if you got an "accept" from Abbey/Santander having been declined by Nationwide.

Further wasted speculative applications are only going to harm you if the result is the same...

Has the "independent" broker actually done a factfind before suggesting the lenders he has? Are you sure of the independence?

TurkeyShoes

Hi Kingstreet, Nationwide could not give me an answer, nor would they let me see the manager/ anybody else.....it was just a case of 'No'. - The mortgage advisor said that she could not understand this as monthly repayments / affordability/ credit score were all good.
I have spoken to two mortgage advisors, one independent (part of free legal advice I can get through work- I believe he is whole of market) and and one via an estate agents. Both came up with very different ideas in regards to which lender would be most likely to accept having a 10% deposit, and knowing that I had already been rejected on that amount!
After doing a little bit more digging, I am now wondering if the need for an increased deposit is due to the property being of a low value, despite being in a decent area, I suppose this would increase the risk for the lender? - although the lady at Nationwide didn't see this as a problem.
I am concerned about my credit rating, I'm not sure how much searches will affect this, as I have found a lot of conflicting information. Experian had my score as excellent before I had visited Nationwide -not sure how much of a 'dent' its getting in it, or how much it will affect future applications? Sorry for another long-winded post!

Thrugelmir

TurkeyShoes wrote: »

Nationwide could not give me an answer, nor would they let me see the manager/ anybody else.....it was just a case of 'No'. -

There's no right to a mortgage. Lenders have a finite amount of funds in any given period to lend out. So somebody has to lose out. As the line gets drawn somewhere.


Keep saving to build a larger deposit. Don't give up. You will get there.

lawriejones1

I wouldn't be overly concerned about your credit rating - it's really only a large amount of searches in a very short space of time that will have any material impact.

If it makes any difference, I have just agreed a mortgage for £160k and in the past 3 months have agreed a loan for £5,000, had 2 searches on a credit card and about 10 insurance credit searches (although I appreciate these are light-touch checks).

In the end, the broker told us not to even bother attempting to get a mortgage without a 15% deposit. It's a very tough world out there now.

MissyD_2

TurkeyShoes wrote: »

Hi Kingstreet, Nationwide could not give me an answer, nor would they let me see the manager/ anybody else.....it was just a case of 'No'. - The mortgage advisor said that she could not understand this as monthly repayments / affordability/ credit score were all good.
I have spoken to two mortgage advisors, one independent (part of free legal advice I can get through work- I believe he is whole of market) and and one via an estate agents. Both came up with very different ideas in regards to which lender would be most likely to accept having a 10% deposit, and knowing that I had already been rejected on that amount!
After doing a little bit more digging, I am now wondering if the need for an increased deposit is due to the property being of a low value, despite being in a decent area, I suppose this would increase the risk for the lender? - although the lady at Nationwide didn't see this as a problem.
I am concerned about my credit rating, I'm not sure how much searches will affect this, as I have found a lot of conflicting information. Experian had my score as excellent before I had visited Nationwide -not sure how much of a 'dent' its getting in it, or how much it will affect future applications? Sorry for another long-winded post!

Have you checked your score with credit expert since your mortgage application with Nationwide?
If your not signed up to them, you can get a free 30 day trial with full access to your credit report & score.
There's also a great wealth of information on credit files on the main site.

They did the same to me through a free independent mortgage advisor, however I had default (settled) from 5 years ago, which comes off later this year.

Also, I would advise that you find a free independent mortgage advisor as they get good rates from everywhere they will also know the lenders criteria.....if you explain the nationwide application situation & a copy of your credit report with the nationwide mortgage application they can usually advise (as can credit expert, member benefit) on any factors affecting your credit file/score.

in the mean time keep saving more as if you don't have enough....not to dismiss what you have already accumulated, but having more will give you more options!

Also do you have 3-6 months of your income put away?
Definitely worth having this amount with your worst case monthly mortgage repayments taken into account.

I know it's a long road (see my signature) but it will be more than worth it in the end!

kingstreet

You can be declined because the application is considered "high risk" by virtue of a short employment and address history and a high loan to value. There doesn't have to be anything wrong with your credit history.

However, I would obtain all three of your credit files so you can check the entries to ensure they are correct. Do not pay money for, or pay any attention to, the alleged CRA "scores" as they are pointless and will give you no indication of your ability to get a mortgage if the issue isn't your credit history.

In general, stay away from EA advisers. Chances are, if it's a national they will have a small panel, not be whole market or independent and charge you a fee on top. Nothing in your favour, at all.

A good whole market broker will want tons of information, a full factfind, credit files, payslips and bank statements to try to get to the bottom of the Nationwide decline. They may wish to look at non-scoring lenders, perhaps a smaller building society, if the problem appears to be a general lack of supporting data, rather than some negatives.

Velvet_Glove

TurkeyShoes wrote: »

Sorry to hear that you had the same problem Velvet Glove, I hope you manage to get something sorted out....It is annoying when they had all of the information, and say it all seems good, but wait until the last minute to tell you it's not! I am going to try with Santander next, and will let you know if I have any luck!

Good luck with Santander. We ended up with ING (now Barclays) through using MSE's 'Broker Plus' theory where you let the broker do some searching and you check the ones they won't. They were very slow (possibly due to them being taken over at the same time - as soon as they changed to Barclays it all went through very quickly) bu we have it now and will hopefully be exchanging next week. We do still have the Nationwide credit card though! (Can't remember the PIN for the life of me...)

addyboy1982

Speak to an independent whole of market broker.

I had a DIP and then full mortgage offer from Nationwide, only for the offer to be withdrawn a week after my solicitor had received it!

My broker advised going with Santander and everything went fine and I had a formal offer from them 5 days later.

Always trust your broker!

TurkeyShoes

kingstreet wrote: »

You can be declined because the application is considered "high risk" by virtue of a short employment and address history and a high loan to value. There doesn't have to be anything wrong with your credit history.

I have been employed with the same company for almost nine years, rented my previous house for six years, before moving back with my parents a year ago to help me save for a deposit (They charge less rent! ) Nationwide seemed to think this was fine.
None of the brokers that I have spoken to have asked for some of the amount of information that you have mentioned- although they have been made aware of the situation with Nationwide. Perhaps this is an indication that I should find somebody else?

MissyD- I did sign up for the 30 day free trial before I started looking for a mortgage, to check that everything was okay, so my trial has ended now. It looked like six points had been knocked off for Nationwide doing the initial search, but not sure what it looks like now. I have got some extra savings to "fall back on" providing I manage to get a mortgage with a 10% deposit.

Pleased to hear that you have got sorted out Velvet Glove :j - I will have a look into that one myself!

Thanks again everyone, I have lots to look into today!