Please help - undisclosed credit

drbojangles

Hi there. First post, hope someone can help!

I am currently applying for a mortage. Am selling my old flat and buying a new house. Not using a broker as I've never used one before and didn't really think I needed to. Got DIP from Nationwide, sent in all supporting documents including a covering letter explaining various things. Basically, on my application form I said I didn't have any student loan or personal loan, because I knew I would be paying off my personal loan (which I have, and sent them the closing statement) and had also received confirmation from the student loans company that I have now paid off my loan and HMRC have been asked to cease deducting repayments from my wages. I also sent that letter to Nationwide.

Phoned Natiowide today to see if they'd recevied my documents and they said I'd be rejected!! What it says on my file is that I passed affordability checks based on information provided but that I had undisclosed credit, ie my student loan!

Now I can't work out if they didn't read my supporting documentation or if they did and still refused me because I didn't originally disclose the loan. I didn't realise I would have to disclose the loan because as far as I was concerned it was paid off. I even phoned Nationwide at the time and they said to send a covering letter to explain the situation and the letter from SLC.

It's gone back to the underwriters with all the documentation I sent for consideration, but am absolutely beside myself with worry. I know it could take some time for the student loan to get taken off my credit report and even payments being deducted because it has to go through three agencies, ie SLC, HMRC and my work payroll. But SLC will and have confirmed that they have told HMRC my loan is paid off.

If they refuse me I know that will affect my credit score and other lenders' willingness to give me a mortgage and I just don't know what I'll do.

Please, I would be so grateful for advice as I don't know how I'm going to wait until next week for the underwriters' decision, or what on earth I'll do if they still say no

ACG

If you had gone with a broker they could have sorted all of this for you.

nationwide will not have looked at the letter. The reason being is they have a team who checks payslips, a team who checks bank statements etc etc - your letter will have been left out most likely. It does not all just go to the one underwriter. Under the circumstances you probably couldnt have chosen a worse lender if you wanted this to be simple.

Onwards and upwards... Its with the underwriter, try to call up nationwide and explain the situation and ask them to put the notes on your account. It should get resolved but its just a case of waiting.

If it gets declined, it will show on your credit report and you will need to declare it in future, but assuming all things are equal im sure you will be able to get a mortgage.

drbojangles

Thank you, that's really helpful to know. I would have used a broker if I'd realised, I just stupidly thought it would be straightforward since I've never had trouble before and never used a broker.

I have spoken to Nationwide (I wouldn't have even known about the rejection if I hadn't called them - god knows when they were going to tell me!!) and they have said they are putting all the documents together to give back to the underwriters for review. I think it's all clear on the account now as I did explain to them today and they have my letters etc.

Why on earth they would advise me to send the letter that I did whilst knowing that it wouldn't even get seen and considered is beyond me.

kingstreet

In a situation where you have any recently repaid credit, ALWAYS enter the commitment on the application and tick the "to be repaid on or before completion" box.

Never assume the system has been updated since you paid it and the lender will automatically see it.

Same with other stuff. Never assume. Tell them what it is and it will be repaid. Worst case scenario, they put on the offer that it is a condition something be repaid that you've already cleared.

Mean for future readers of thread, more than OP, TBH.

drbojangles

Wish I'd known this before! Lesson learned and really, really hope I haven't stuffed up my chances of getting this mortgage.

drbojangles

Still feeling completely devastated and now facing a three-day long weekend of torturing myself over it. We're supposed to be going to see the house tomorrow

Am I going to be considered to have lied on my application and rejected regardless? It was a totally honest mistake. Do mortgage companies ever reverse these decisions if you can prove what you are saying about your credit is true?

Kazza_Monkey

Hi there, you sound like you are going through exactly the same thing we went through. We also applied ourselves without broker (with hind site we should have used one). Put in our application no debt outstanding as we had paid off all card balances the month before we applied. Survey was fine all docs submitted all ok so far. Then got the phone call we were dreading they were set to decline our application because of undisclosed credit the person I spoke with was very prohibitive and wouldn't give me any clue what it was they thought we owed just that we needed to check our experian reports. As it happened one of our credit cards hadn't had the report updated and still showed a balance. I called them back explaining about it they said that they would only offer us £5k less than we needed. We accepted but were a bit disappointed as we wanted the money for refurb works. Then the shock came got the offer letter through offering us the full amount of mortgage on the proviso that we cleared the credit card before completion as we had already done this it wasn't a problem. The best thing you can do is keep ringing them
Forgot to say this was with the nationwide at the beginning of April

drbojangles

Thank you, that is really encouraging!

drbojangles

Update, more for future viewers of the thread than anything else really:

After almost a week of sleepless nights and constant worry, Nationwide have just offered the full amount requested, over the term requested. It would have been quicker had there not been a three-day weekend in the middle.

So utterly relieved, and in future I will ALWAYS use a broker as this stress has been hideous and was completely avoidable!