Mortgage hassle when house nearly completed!

dogbox153

Hi all,

Its my first time here so I'm asking for some advice as I am totally confused and a little upset.

I have purchased a new build house which is due to be completed before the end of March. I arranged a mortgage with Nationwide through a broker recommended by the builder and all was fine. I have paid the money to my solicitor for the deposit, all surveys were done and all went through ok.

Today I received a letter from my solicitor saying that I had to send a "change of mortgage" form to the broker to be forwarded to Nationwide.This is because Nationwide did not know that my partner would be living with me in the new house. He is not on the mortgage and the mortgage is solely in my name.

I called the broker who said that the mortgage company may now ask to re-key the mortgage. She then said had I taken out any credit since my application, i said yes I have taken out a car loan for £90 a month over 3 years. I was told this would cause an affordability problem if the mortgage has to be re-keyed. I couldn't understand how this could be as after taking out the mortgage payments and this small loan out of my wages I am still left with £1200 per month. Looking on the initial paperwork it appears that money I was putting into savings at the end of every month was actually taken as a "monthly expenditure" on the application even though it was going from one account to my savings.

What I want to know is If this mortgage is re-keyed and declined , am i likely to be able to get another mortgage or will it create a mark on my credit file? I have no bad credit and have never missed any payments for anything.

Has anyone got any experiences of something similar where there are problems right at the last minute where contracts about are about to be exchanged ?

Cheers :0)

amnblog

Nationwide probably ran a credit score and picked up this new loan.


Since your case may already have been showing as tight as you believe savings have been input as outgoings - a problem may have been caused.


Put this problem squarely on your broker's toe first thing in the morning.


Every week we tell posters on here NOT to take out new debt whilst in the process of securing a mortgage - this is what can happen.

SweetPaprika

Not sure if this helps but we've just used a finanical advisor and they seemed to help us with any problems. we used RSC but there's loads out there.

squeeks

Been through something similar myself.

Having another adult in the house who isn't on the mortgage had a big impact on my affordability, despite the fact they aren't a financial dependant.

It was affordable as a single person with a child dependant, just not affordable with another independent adult in the house...

In the end we had to bite the bullet and go for a joint application. Which is a little frustrating as while we are married we were not financially linked.

dogbox153

Hi squeeks it seems mad that someone bringing an extra income in and sharing utility bills makes the mortgage less affordable. See what happens I know I can get deals with my own bank etc but I just worry now that if it is re-keyed it will cause problems with my credit rating which has always been fine.

squeeks

The assumption seems to be that anybody in the household who isn't on the mortgage will impact your affordability.

To be fair I guess the lender doesn't know about the other adults income and they assume you are lying about the financial dependants in the house.

ourcornercottage

I have another adult in the house not on the mortgage and hsbc basically ask him to sign a form to say that the bank has first dibs on house if a repossession occurred. That might be the reason.

dogbox153

Yes the solicitor said it may be a case of him signing a legal document to say he won't squat if it's repossesed or I die, and that may be all it is so fingers crossed. I really hope so this late in the day.

WillyWonga

Even though you think you can easily afford it a bank may look otherwise. Dont forget for affordability they key your mortgage payments at 7% to take into account any potential rises to put it to the stress test.

Get onto the broker first thing in the morning and get him onto it.

Fingers crossed, good luck

dogbox153

Just spoke to Nationwide this morning who said its not a problem and is a case of my other half signing a form to say he has no rights to the property.