Nationwide declined agreement in principle? :(

Lionel_Thinkbag

Filled out nationwides mortgage calculator, told we could borrow up to £94,000. Fine and dandy with us.

Then went on to fill in the online agreement in principle form, using that info, 10k deposit. Then told 'computer says no' ?

What could have triggered this?

Our situation:
Its a single application, I'm a SAHM. Husband earns around 20k basic salary and 10k bonus (accounted for on form) He's had a credit card for the past 3/4 years which is the first credit he's ever had, and we use it for our lovefilm subscription and a few other smallish things - always paid off each month in full. No other loans, debts, defaults or anything else of the sort. (Neither do I for that matter, though none of my info was used on the form)

I'm just a bit worried as applying for AIP leaves a footprint on credit files doesn't it? So I'm wary of applying elsewhere in case we fudge things up further.

I've suggested he check his credit file, but he thinks its a bit of a rip off! :undecided Would it be likely there could be mistakes even though he's only had credit for a few years?

Any suggestions/advice would be appreciated.

bristol_pilot

The applicant earns £20k basic and has a wife and family to support. I suspect the £10k bonus wasn't counted, in which case affordability is doubtful.

Lionel_Thinkbag

But why ask about the bonus in the first instance if it doesn't count? The mortage calculator asked about bonuses so the 94k we were asking to borrow was based on that.

EDIT: Are we better off going through a broker? Or would that impact the credit file more (assuming the credit file was the problem)

zzzLazyDaisy

In your situation I'd go through a broker as they will know which lenders are likely to count the bonus and which are not, without making any checks that will leave a footprint. (Note - that is an all of market broker, not one tied to a bank)

sulphate

Definitely check credit file.

When affordability is tight or doubtful, lenders pay more attention to everything - credit history, deposit. With a small credit history and 10% deposit, I think a broker would be your best bet.

TBH I don't know why bonuses are even asked on forms, as most lenders won't take them as guaranteed income it seems.

Lionel_Thinkbag

Thanks for the replies guys.

In terms of bonuses he's been pretty consistent in getting them in since he started his job, we have the payslips to prove it, but yeah I guess lenders don't think its reliable enough.

Hopefully a broker can help us out.

EDIT: And yeah, I think a credit check is a small price to pay for peace of mind, I'll get nagging

Thrugelmir

Lionel_Thinkbag wrote: »

But why ask about the bonus in the first instance if it doesn't count? The mortage calculator asked about bonuses so the 94k we were asking to borrow was based on that.

Online mortgage calculators are rough and ready tools. The full application process makes a far more detailed judgement.

Marshflower

Ironically it may not be that you have a bad credit rating but that you do not have enough of a credit history. It can sometimes be of huge help to have had lots of credit cards and loans and been a good payer as it shows you are a better propsotion for credit as opposed to someone with barely any history and so no evidence of how good you would be at repaying debt. I know this sounds bizarre but it can be the case in some instances.

Justicia

Lionel_Thinkbag wrote: »

I've suggested he check his credit file, but he thinks its a bit of a rip off!

If you do go down this route, make sure that he requests the £2 reports from each agency, rather than signing up for any long-term, online "monitoring" options that may prove him correct!!!

Paully232000

We looked at Britannia for a mortgage a few months ago just to get an idea of what we could get, and they used 50% of the bonus paid to one of us if that helps.

kingstreet

All three stat cred files, £2 paper versions are fine.

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

Did you do a sole or joint application? Class yourself and child(ren) as dependent? £10k deposit? That may not be enough. What amounts did you submit for purchase price and mortgage amount?

Get the credit files, then talk to a broker. No more speculative credit searches from this point on.