Mortgage declined - advice please!!

Homer_J

Hi All,

I wondered if any of you mortgage gurus could give me some advice. The Nationwide have declined, on appeal, my application for a mortgage.

I am a first time buyer (having lived in Forces accommodation for many years), I have a total annual income of £59K plus an annual bonus of £8K, I have a cash deposit of £37K and, although I have 3 credit cards, I have recently cleared all balances to zero (Nationwide are aware of this) and am completely debt free. I have never missed any monthly payments and always repaid more than the minimum amount on my cards. I have banked with Nationwide (current account, savings account and credit card) for 12 years. I had applied for a mortgage over 15 years.

The Nationwide Mortgage Adviser has offered no reason as to why my application has been refused.

I have heard that Nationwide are notoriously difficult to secure a mortgage with; is that true? Is it worth applying elsewhere and, if so, with who?

Any advice would be very gratefully received - I really don't want to have to rent privately and watch my savings erode!

beecher2

You don't say the size of mortgage you hope to achieve.

Get a hold of your credit files to check there's nothing lurking there, and take them along to a mortgage adviser for help.

Homer_J

Hi, thanks for the quick reply!

I am looking to borrow approx £170K; had my application not been declined, the Mortgage Adviser said I could have borrowed up to £267K.

Good advice to check my credit file, but I'm sure there is nothing lurking in the background.

Dave_Ham

Hi there,

Best to get your files from Experian, Equifax and Call Credit.

That said, if you were BFPO address and certainly if overseas then you may need mortgage broker support. May not need to be a guru, but certainly someone who has placed Forces mortgages previously.

All the best

Homer_J

I have had a BFPO address in the past, but not for 14 years. I have been at my present address for the last 12 years.

Dave_Ham

Then for Nationwide to decline outright, there will be something on your credit file.

You may want to start with Equifax..

Homer_J

Just checked Equifax, all categories are green, no CCJs, but there's a red warning for credit agreements, which I don't understand.

The report dates back to 2001, but everything is marked as settled; the credit card zero balances haven't been updated yet, but Nationwide were aware of that. The only active credit agreements are for my current account (!), 3 family mobile phones and my 3g Mifi. Any ideas?

GMS

Red means arrears. Click on the credit agreement section and look at the accounts. Are there missed/late payments showing in last 6 years?

Almost certain to be the reason for decline.

Homer_J

On checking, the only issue is one missed payment for a HFC budget account in December 2006. The account was settled on 23/07/2008; the last time this was updated was 15/09/2008. Under the 6-year rule, shouldn't this now be removed from my report? If so, how do I have it removed?

GMS

One missed payment would show amber, not red. Check all agreements.

Data will stay on file for 6 years from settled date

Homer_J

Thanks GMS, I really appreciate your help. Been through with a fine-toothed comb and there are no missed payments other than the one mentioned above. I've found something else that looks a bit weird though, and I don't recognise it. The title is 'Credit Card from 1st Credit, which I have DEFINITELY never possessed and the detail is as follows:

Terms 0 @ £ 0 (Monthly)
Current Balance £ 584
Start Balance £ 0
Credit Limit £ 0
Default / Delinquent Balance £ 0
Date Updated 09/02/2010

The boxes are grey with a crossed out 'U' (meaning not updated), no red/amber warnings. I'll phone this company in the morning, but don't think it would have a bearing on my report?