Mortgage In Principle - Rejected by underwriters

WCN87

Hi All,

Just looking for some advice or anyone been in a similar position.

My fiancee and I have found a house that we want to buy £179,000 however would be offering about £165,000. Our mortgage advisor put in a soft search mortgage in principle application with Natwest on a 5% deposit which came back rejected after being referred to an underwriter due to my other half who has 3 defaults - 2 satisfied, and one paid off as of this month. all under £400. We can definitely afford the mortgage, I am on £26550 and she is on £23500.

Our mortgage advisor has suggested we try the same with Halifax. We also advised that we could put down a 10% deposit thanks to family. We both have existing credit card debt, My other half more than me. We have also been saving for our wedding in September so thats why we havent completely paid off all of our debt yet, but really want this property we have found and want to move on it. My fiancee's mom has offered to help, so we're trying to consider other options if this gets rejected aswell, such as my other halfs mom takes out a 2nd mortgage with myself, or even a buy to let mortgage and let it to my other half.

GMS

If your mortgage adviser was aware of the defaults they should quite frankly be shot. There is no way on earth Natwest would do this with 3 visible defaults.

Can't see Halifax doing it either. Maybe they are taking the sling mud and see where it sticks approach.

When were the dates of defaults, how much exactly, when satisfied and who put them in place?

WCN87

Myself

Default Date: 24/02/2012
Satisfied Date: 2/10/2012
£350 Certegy LTD

My other half

LOWELL PORTFOLIO I... Mail order Default Satisfied 26/08/2012 £371

NEXT DIRECTORY Mail order Default Satisfied 18/12/2011 £163

STUDIO Mail order Default Satisfied 09/10/2011 £84

FREEMANS PLC Mail order Default Satisfied 06/11/2012 £711

LOWELL PORTFOLIO I... Mail order Default 04/05/2014 £168

My other half was still a university when she had her 3 original defaults, since then has cleared a significant amount of debt including her final default now.

GMS

A default 9 days ago and you expect somebody to lend you over £150,000? Seriously?

I am guessing your broker works for the estate agents?

WCN87

No need to be patronising. Clearly this isn't my field of work hence why we have a mortgage advisor to assist. We're looking to help find the best solution for getting a mortgage as I mentioned yes my other half has issues with defaults, my other halfs mom is willing to take a joint mortgage out with me. But we would like to know the best way of going about it as she has an existing mortgage be it a small mortgage.

GMS

I am not being patronising. Don't need to be an expert to see the flaws in this.

Is your broker from an estate agency? They are certainly not assisting by applying at random.

Your other halfs Mum will struggle to get a BTL mortgage to let to her child.

How old is she? What income does she have?

WCN87

£36000 and she is 52. No he's an independent financial advisor. We're just looking to find what options could be available to us...

WCN87

They weren't applying at random, he suggested a soft search check with Natwest as I have banked with them for over 10 years and hoped that our relationship would help. Halifax he seemed to think were another that a likely criteria especially if we went for a 10% deposit rather than a 5% but I suppose like you mentioned the defaults for my other half would be flagged up.

GMS

How much credit card debts do you both have?

WCN87

My other half and myself? Or my other halfs mother?

I have one credit card left that I am about to start paying back which is £1000 I've had this since I was 22 and always just paid the min amount. And never missed a payment. I have a Natwest credit card with a full balance available of £1800 and I use that on small things though the month and pay it back each month just to improve my credit. My other half and I also have an overdraft facility on our joint account for £800 which again we dip in and out of throughout the month as we transfer our salaries In there.

WCN87

We are paying £600 each a month over the last year towards our wedding and honeymoon in September which is why mine/hers debt hasn't completely been paid off. But we also have £16000 in a savings accounts now as a deposit.