Declined by Natwest...DIP with Nationwide

bigcathy

I have previously posted on another thread but my circumstances have changed since then.

My partner and I had a decision in principle from Natwest in January, shortly after this we found that my partner had a default on his credit file from Mar 2009. We spoke to someone at Natwest who told us that it might not have too big an effect and we should continue searching for a house.

We did and had an offer accepted. We then went back to Natwest to make the application. We were upfront with the MA about the default and took copies of credit files. He referred it before doing a credit score and the team said they were happy to take it to full application (involving the credit score). He did warn that we might not pass but that there was a chance we would so we went ahead. After a 2 hour grilling on whether we were going to get married, have children, potential maternity leave packages and childcare costs (for children we don't yet have!), he did the credit score and we were declined on a Band I. The Natwest MA said we were close to passing and suggested the only other option was to up our deposit to 85% which we didn't really want to have to do.

We have since spoken to an independent MA who has got us a DIP from Nationwide which did involve a credit score and credit check. He is now going to submit full application on Friday and the valuation has been instructed for early next week.

Essentially I am just really worried that this still might not go through given that we failed with Natwest, this has seemed worryingly easy with Nationwide. The MA has assured that they are unlikely to do more credit scoring and that the DIP means they are happy to accept us with the default but I just can't help but feel concerned. Does anyone have any knowledge of Nationwide as to whether this means (subject to valuation and proving we earn what we have said and they have verified other monthly spend and are happy etc) we should be likely to have this go through?

For context:
House value - £125,000
LTV - 90%
Deposit source: Gifted from parents - 50% mine, 50% partner
My income: £18,100
Partners income: £16,500
Credit card (Me): Balance £250
Credit card (Partner): £1600
Default amount: £800
Default date: Mar 2009 (Satisfied Mar 2009)

confuzzled2014

Very near to our situation... we went through with Halifax after Natwest let us down at the last minute. It didn't cause a problem that we had previously applied with Natwest. We were just honest about it.

kingstreet

On which version of your credit file is the default visible?

If Equifax, it would be visible to NatWest, but not Nationwide which takes data from Experian alone.

A Nationwide DIP is very reliable.

bigcathy

Thanks for your help, the default is on Equifax, to be honest we hadn't checked Experian as we knew Natwest used Equifax so perhaps it isn't recorded on there. I will have to check.

So, now that they have given the DIP the likelihood is that for credit scoring at least we are fairly safe? They have only asked to see most recent payslips and bank statements for last 12 months just to check our rent payments. After what happened with Natwest, I am just very cautious until I have an offer. Then more anxiety until we have the keys in our hand!