Natwest mortgage gone to underwriters???

bikermom

Please bear with me as i am new at this, but could really do with some advice. My husband and I are currently in the process of moving home - we have sold our current house, and have had an offer accepted on a new property. Have spent the last 3 weeks attempting to contact natwest to do a mortgage application and finally got through and sorted (to an extent) today... after dropping the amount they would offer us mortgage wise by just over 5k, we have now been told our application has gone to the underwriters. I am petrified now that we are going to be declined. We have had a natwest mortgage for 3 years, and have been with the chelsea for 7 years before that and have never missed a payment. we have credit scores of 877 and 855, have no current loans (all our loans were completed 2 years ago and always paid on time) no credit cards - on the bad side we both have overdrafts - i have gone 8 months not going over my limit - but my husband only has 2 clear months (annoyingly the reason he kept going over his limit was that the bank kept taking money without letting us know when or how much was coming from his bank!) the property we wish to buy is 142,500 and we have a £63,000 deposit. We are also porting our current mortgage over so are only doing additional borrowing of 24k, what is the likelyhood of us actually getting the mortgage - or do i need to start looking for places to rent!

_Andy_

1) Credit 'scores' mean nothing so ignore them.
2) No point whatsoever in people speculating on whether it will be approved.

kingstreet

bikermom wrote: »

on the bad side we both have overdrafts - i have gone 8 months not going over my limit - but my husband only has 2 clear months

If this is a NatWest current account and he has overlimits, unpaids or excess borrowing charges in the last six months, you may have a problem.

Being a clearing bank, NatWest has always hated poor current account conduct. If you were my client I would have counselled you against NatWest again, just in case...

bikermom

Being a clearing bank, NatWest has always hated poor current account conduct. If you were my client I would have counselled you against NatWest again, just in case...

The issue is not many lenders will touch us - my husband works and my income is based on tax credits/child benefit. I am really worried now as we have exchanged on our current property and rent wise all we can afford for now is a 1 bedroom place for 4 of us (which i really do not want to do!) I can not see what the issue is - we have a large deposit - we can easily afford the repayments and have NEVER been late with a payment ever. I am in tears about this and I really do not know what to do.

kingstreet

The issue is poor current account conduct in the last six months and a lender which, as a current account issuer, seems to set great store by this.

You have to wait and see what decision the underwriter will reach. Hopefully, the deposit will outweigh any concerns and you application will be accepted.

Why is your sale so far progressed, while your purchase is in an early stage?

Who else did you/your broker consider before deciding on NatWest? Other lenders accept tax credits and child benefit.

Thrugelmir

bikermom wrote: »

I can not see what the issue is - we have a large deposit - we can easily afford the repayments and have NEVER been late with a payment ever.

In general terms, constant overdraft usage suggests to a lender that you are not in control of your personal finances. The slightest financial distress you encounter could cause real issues. So while you say you can easily afford the repayments. The lender is assessing the risk of you defaulting. As a 25 year mortgage requires 300 monthly on time payments to be made. None of us know what the future holds over such a length of time.

bikermom

Why is your sale so far progressed, while your purchase is in an early stage?

I first contacted natwest before the property was for sale and got an agreement in principle. then as we put the offer in i contacted them again to confirm the amount we needed to borrow, and i asked if we would have any issues due to overdrafts - they said we needed 3 months of not going over our limits which we now have - then after 3 nearly 4 weeks of trying to complete the application they dropped this on us.

Who else did you/your broker consider before deciding on NatWest? Other lenders accept tax credits and child benefit.

We didnt use a broker - we went with natwest as they are our bank and they hold our current mortgage so we can port the mortgage and not incur early repayment charges. We did speak with an advisor at the estate agents - but all he did was check with halifax who would only offer us 14k so wasnt very helpful.

As a 25 year mortgage requires 300 monthly on time payments to be made. None of us know what the future holds over such a length of time.

That i can understand, annoyingly however in 2 years time we will be better off then ever as i will be going back to work as the children will be at school. However i get that they cant look at that and its only past behaviours.

GMS

What is your income? How much tax credits? How many children? Any personal borrowings i.e loans, HP, credit cards?

For Halifax to only offer 14k when you want 80k sounds worrying.

Are you on interest only or repayment currently?

bikermom

My husband has a gross income of 14200 after all deductions, I get 8510 a year in tax credits/child benefits.

We dont have any current loans (have all been paid off - all on time payments ) we have no items on finance, and no credit or store cards.

We have 2 children - one aged 2 one aged 6 months. The current mortgage (with natwest) is repayment and have been with them just under 3 years, previously was with chelsea for 7 years again on repayment.

Have just discovered today that there is one thing that we have done that will go against us in a big way - in order to improve our credit rating we have got a few payday loans - 2 in the last 6 months. both have been under £100 and both only for less then a week, but did not realise that lenders looked poorly on these. Combining that with my husbands overdraft issues - i now think we will not be able to get a mortgage anywhere even with a 40% deposit

floss2

OP, I was told by NatWest 2 weeks ago that ALL mortgage applications go to Underwriters - what matters is whether your advisor actually tells you or not.

At the end of the day, any lender has to be seen to be mitigating their risk by lending to any borrower, so for them to have a process of being approved by underwriters is quite acceptable nowadays.

My application is awaiting the survey report; then it will go to underwriters for them to make their decision based on that report & the other documents they have as part of my application.