Will I be rejected for a mortgage by the woolwich?

Rkc1989

Hiya, first time to this site so sorry if my post is in the wrong area.

Basically I'm out of mind with worry at the moment so really need some advice!

Basically my husband and I are applying for a mortgage with the woolwich at the moment. We have a 40% deposit on a £750k house. We are at the same time remortgaging our current property to convert it into a buy to let and have 25% percent for the house worth £350. We have a broker.

Basically we got a decision in principle for both mortgages from the woolwich. We then continued with the application and the woolwich have asked for our various bits of info such as payslips etc which is normal. However they also came back to say that they want an explanation as one of us have adverse credit. We had no clue what this could be. We found out its me on a noddle credit report (mine was 3/5 and my husbands 5/5). It is for arrears on my next directory account. Basically I had 4 months arrears from nov 2014-February 2015. The reason for this was because I had a number of items that needed to be returned and some incorrect ones that I received so I withheld payment as didn't want to pay for this. It just took me a while to return these. I paid my account off in full early march. Everything else on the report was fine. I pay my credit cards off on time, have savings in my bank accounts and am not withdrawn anywhere.

What is the likelihood of the woolwich rejecting me? What should I do/ say or send with my explanation?

If they were going to reject me would they have done it without asking me for 'an explanation'. Has anyone else had this and then been rejected? Any advice would be greatly appreciated!

amnblog

Did the broker see your credit file before application?

tiptop222

Hello, I just happen to notice your post and I am a mortgage broker. The missed payments are outside of their criteria so it is highly possible that this will be declined. They can look at isolated credit blips with good reason. However I think that withholding payment will not be a good one. I always advise pay in full dispute later. Below is their guide to adverse credit. You just have to cross your fingers and hope they agree it and you have a good broker on you side. It is the discretion of the underwriters. There will be 2 completely different underwriters one for resi and one for BTL. So technically one could be agreed and one declined. Plenty of lenders will ignore this blip so assuming everything else is straightforward you will be fine.


Payment arrears/missed payments
Any adverse credit identified, as detailed below, must be declined

• Arrears of 3 or more months on any one account in the last 6 months
• Cumulative amount of arrears at any point in the last 2 years of 3 or more monthly payments on any one account, ie 3 or more instances of a late payment

Applications can be considered where the adverse appears to be inconsistent or out of character when compared to other Credit Account Information Sharing (CAIS) records or where documentary evidence of a settled dispute has been provided by the customer

I hope this helps...