Re mortgage declined by NatWest due to ex's credit file

0106

I have been separated for over 4 years and have recently had my decree absolute. As part of the divorce process, I have agreed to buy my ex out of the marital home.
Due to requiring additional funds to pay for this and clear some former marital debt, the loan amount has increased and my mortgage broker had some difficulty finding a mortgage product due to the LTV ratio being quite tight.

My mortgage broker spoke to the underwriters at NatWest and they agreed a mortgage offer in principle. I had the valuation and unfortunately it came back too low, the broker asked if I would be able to reduce the loan amount and after a chat with the ex I was able to ask the mortgage broker to go amend the loan amount by £8k, which would have given me the required LTV ratio of 80%.

I have just heard from my mortgage broker that my mortgage application has now been declined due to a 'linked adverse status'. I have a financial association with my ex husband through our mortgage and a current account which is attached to the mortgage (offset mortgage). This is a financial association I am trying to end by buying him out of the property.
Once I have bought my ex out, the mortgage and associated current account will be closed and our association will end.

NatWest are aware of this, they are aware of the reason for the re mortgage and are aware of the amount I will be paying to the ex. They were aware of this when the credit scored me in March when the decision in principle was given and nothing has changed between now and the second time they credit scored me last week (due to the reduction in loan amount) but for some reason my ex husband's financial behaviour is now the sole reason why the have declined me (I have received a copy of their email confirming this is the case).

My credit rating with Equifax is excellent, my ex husband has shown me his credit rating with Equifax,which is also excellent. The only thing I can think of is that my ex is a guarantor for a loan his girlfriend took out. My mortgage broker thinks that the underwriter sees this company as similar to a pay day loan company and this is what has led to my application being automatically declined.

The NatWest have said that I can appeal the decision and are asking me to provide a notice of disassociation filed with Equifax but as I still have a joint mortgage with the ex, this of course is impossible. Equifax have suggested I request a notice of correction explaining why I have this association with my ex and I have done this.

NatWest have seen my decree absolute so they know we're divorced, they can see that the ex hasn't lived in the marital home for 4 years, they can see our only financial link is the mortgage I am trying to settle with a new mortgage in my name only. I am also using their solicitor for the deed of transfer but apparently this isn't enough and I need the notice of disassociation.

Any suggestions on how to proceed would be greatly appreciated.

kingstreet

0106 wrote: »

They were aware of this when the credit scored me in March when the decision in principle was given and nothing has changed between now and the second time they credit scored me last week

A DIP done on the NatWest website is only a soft search. If the broker did the DIP via the MTE system, it was hard searched.

Otherwise, the full hard search is at full application only.

Not much to suggest, other than what you are already doing.

0106

Thanks for the quick reply.
The first search in March wasn't a soft search, it was a full one and is registered on my credit file as was the second search last week.
The broker didn't do the DIP, they contacted the underwriters directly and it was the underwriter who made the decision.
At the moment, I don't see what else I can do. I can't provide the impossible, which is what NatWest are requesting.

King_Slayer

As they have suggested you should provide the notice of disassociation and appeal.

0106

As I've already said, it is impossible for me to get a notice of disassociation whilst I still have a joint mortgage with my ex husband.
If I could get the notice I would but I can't. I have spoken to Equifax and they have confirmed this.
At present Nat West are asking me to provide the impossible by requesting i provide this notice and I am in a catch 22 situation.

0106

I've just spoken to the underwriter and he was unable to tell me why NatWest are treating my ex and I as a couple rather than treating me as an individual when they know that I am trying to end my financial association with my ex by buying him out of the marital home.

I have now spoken to the complaints department about their inflexible policy regarding financial associations and they are going to escalate the issue to a senior underwriter/manager.

Thrugelmir

0106 wrote: »

The broker didn't do the DIP, they contacted the underwriters directly and it was the underwriter who made the decision.

Who's they? Did you receive written confirmation of this?

0106

The brokers are the they.
The underwriter has confirmed to me over the phone that the NatWest conducted a full credit search on me and agreed to accept my mortgage application.
He also confirmed that the only issue they had was located on my ex husbands credit file and was nothing to do with my credit file.
Apparently the NatWest system isn't set up to consider that divorced people might need to get a new mortgage to be able to end their financial association with their ex.
Instead they treat them as if they're still a couple.

0106

My case is now with the Exceptions team and I am awaiting there decision.

Has anyone else had any experience of this team at the Nat west?