Mortgage declined

tonytilbo

We have just been declined a mortgage by Natwest even though we passed there affordability checks while doing the in branch appointment and have a near perfect credit reports (from Equifax and Experian). When we queried the decision we were told that there is flag on our account saying apparently I had a non-paid credit card debt outstanding which was written off in 2003, at this time I did have some debt issues but I was under the impression these were all paid up and cleared years ago!

What has confused us more is the fact that we currently have a mortgage (and have had it for the last 8 years) with a different lender have banked with Natwest for the last 20+ years have had 2 unsecured loans from them in that time totally more that £15,000 and currently have a credit card with them with quite a substantial limit (spending is no where near that maximum), and not once has this ever been brought to our attention.

Is it typical for an underwriter to take debts / issues as far back as 13 years ago in to consideration ? Any suggestions as to where we go from here?

Pixie5740

Was the unpaid credit card with NatWest?

tonytilbo

Yes it was

Let_Us_See

Now you have your answer. Switch to another lender.

chanz4

once bitten twice shy, if you had of paid it off they may change their mind

csgohan4

Near perfect credit reports means nothing, your credit report is far from perfect. A credit history is what lenders look at it. A lot of people think scoring >900 on their reports means they can print money albeit through the lender.


Did you look at your reports history before you applied? I presume not as you didn't see the entry in 2003.

tonytilbo

Yeah of course I checked my credit report (as much as you can with these online services) and nothing was showing from 2003 I guess what has puzzled me is I haven't changed banks, although we did change to a shared account at one point, I've had various credits with the same bank over the years which has been paid on time without issue yet this has never been raised with me.

Its not like I disappeared down a dark hole for 13 years to then emerge for a mortgage anyway, onwards and upwards we will get there in the end.

densol_2

csgohan4 wrote: »

Near perfect credit reports means nothing, your credit report is far from perfect. A credit history is what lenders look at it. A lot of people think scoring >900 on their reports means they can print money albeit through the lender.


Did you look at your reports history before you applied? I presume not as you didn't see the entry in 2003.

The 2003 would not appear on current credit reports as it's more than 6 years old. However many lenders have their own list of debts from customers that go back longer than the 6 years and unfortunately here they have located this debt and declined. Another unlinked lender would have no such access and may be the option.