mortgage rejection and withdrawal

kingstreet

Yet another "phone a lender three times and get three different answers" moment on MSE.

As previously stated very few lenders ask if you have had a mortgage application declined, so this question is pretty much moot.

ajmh15

Well, I trust NatWest mortgage advice team to give me an industry accepted accurate response, others may disagree. My choice.

FYI we have had to answer that question on both mortgage agreements with 2 different lenders we have entered into in the last 12 months. I am sure there are lenders out there who don't ask that question.

As I understand (as an unqualified member of the general public) the difference is thus:

If you are rejected a mortgage it may be because you have a bad (or no) credit history, you have criminal convictions etc etc. In summery, there are issue with your situation the lenders are not happy with.

If you have a mortgage offer withdrawn, it can be because you have changed your job/are being made redundant etc, the deal with the house has changed, there has arisen a conflict of interest, you have become terminally ill etc - none of which were foreseeable or pre-existing issues you failed to bring up and thus they are not considered the same as having a mortgage refused.

However I presume if you lied on your mortgage application and subsequently had an offer withdrawn when the lender found out, I suppose there would have to be some sort of black mark against your name/credit history, but I don't know or care/didn't ask as that is not the situation I am in.

Cheers all have a good evening

kingstreet

Asking one lender what is representative of the whole market is plain barmy and you're giving far too much status to the advice of mostly inexperienced and poorly trained call centre staff.

In my dealings with NatWest in Birmingham, I'd say their knowledge of their own criteria and policy hasn't been great. Often the broker tells the staff member what the lender will or won't do, the operator goes away, finds out and comes back and tells us we are right.

I'm sure other brokers have the same experience.

Many lenders de-skilled in the crunch, with the experienced, expensive staff allowed to go and replaced with lower-cost alternatives without the required experience or aptitude for the job.

Interestingly, the current NatWest mortgage application asks nothing about declined applications;-

http://intermediary.natwest.com/Downloads/natwest/NW_MortAppForm.pdf

As far as your other comments are concerned, this may be of interest to you;-

https://www.nhunter.co.uk