FTB Mortgage declined due to Undisclosed Credit and Conduct of Account

XxRoadhogxX

Hi,

I am buying with a friend and we had a decision in principle accepted with Natwest, have paid alot of money towards our newbuild house and have just heard back we have been declined.

Since the decision in principle my friends credit rating has gone up to above 800 into good and mine has been at excellent the whole time,

We have disclosed every credit they have since been cleared or put well below limits.

So how can there be undisclosed credit?

Also can anyone explain what conduct of account can mean?

How do we appeal?

Many Thanks

lee111s

You need to check both of your credit files to see if there are any outstanding debts which you are maybe not aware of or have forgotten?

You'll also need to check to see if there are any late payment markers on either account.

kingstreet

Account conduct is probably conduct of current account, such as bounced direct debits or unauthorised borrowing charges.

Were any of these visible on any bank statements submitted, or either of you bank with RBS Group?

Undisclosed credit suggests NatWest has found something on Experian which appears to be an active credit account which wasn't on the application.

XxRoadhogxX

Thank you both.

Will look in to it with my friend and let you know what we find.

Also my friend is with Natwest and I am with Barclays so no RBS Group

Once we have all the relavent info how do we go about appealing as our Mortgage Advisor isnt very helpful

kingstreet

RBS, NatWest and Ulster Bank is RBS Group, so account conduct on a NatWest account will be scrutinised on a NatWest mortgage application.

NatWest declines any case with recent poor account conduct on one of its accounts.

Is your friend 100% honest with you?

amnblog

This is not about appealing. This is about getting the credit files for each of you to see what is on there.


If the lender is saying undisclosed credit the most likely reason is something you actually know you have but did not think to tell the mortgage broker.


Something like a car lease, recently repaid debt, or zero interest deal from a retailer.

XxRoadhogxX

I have spoken to Natwest directly

They advised:

Undisclosed Credit could be due to things not cleared off of credit report as you said above or things forgotten.

Conduct of account couldbe due to going over overdraft limit which i did last month but was the first time in a long time and i have since recouped

And Insufficient funds - i dont understand why we would have a decision in principle agreed and then be told this.

I have since had a pay rise affective 7 days ago.

Is it worth appealing?

Also turns out our MA used a broker that we werent aware of which means we have to appeal through them

ACG

A decision in principle is a broad check and credit check.
Underwriters then look through the paperwork to ensure they are happy with everything.

Going overdrawn would probably not have been picked up at DIP stage - although you would like to think the advisor would have picked up on it.

Did you go to a broker or direct to branch?

Thrugelmir

XxRoadhogxX wrote: »

Conduct of account couldbe due to going over overdraft limit which i did last month but was the first time in a long time and i have since recouped

This suggests that you are fairly often in your overdraft. Is this the case? Over the limit of your overdraft suggests that your personal finances are not being well managed at all. Sounds as if you have no savings either.

Certainly not the conduct that a lender will accept.

gazfocus

I would find a broker and go to them with both your credit reports and your bank statements and see what they can find you. We've used a Mortgage Broker twice and she was invaluable both times.

kingstreet

If this "DIP" was done on NatWest website, a full credit search isn't done. That only happens on full application.

MA used a broker? What does that mean?