Mortgage sucess stories

cwaless100

Any further news Kellsm?

Richey_

Back in 2010 I had an old student overdraft on a second bank account with Natwest which I did not change the address for when I moved house and also did not use for a long time. Hands up, my mistake, I am not making excuses, I messed up. The bank defaulted this account on 31/07/2010. I moved house, later set up a joint bank account with RBS and almost immediately was receiving letters from Regal Credit in respect of the £2063 that I owed Nat West Bank. I set up a payment plan with them by phone in May 2011 and cleared the whole ballence by February 2013. I also had a notice of correction on my Experian to explain what a wally I had been.

We wanted to buy a house from somebody we knew around June 2013, the house price was £240,000 although probably worth a little more. We approached Santander direct where my partner has banked with for many years. We were up front and honest with the Santander mortgage adviser at the time. We had £42,000 saved and offered £30,000 as a deposit as we knew the house needed work doing. There was no estate agent fees involved as we're not using one, but there would be stamp duty and legal fees. We went for a DIP which was of course referred, I saw this as a guarantee beause of my notice of correction. We had to go through all of the affordability checks and every element of our finances scrutinised. This was not a legal requirement at the time, but Santander were getting staff ready for when it was so put all new mortgage applications through it - that was a very long afternoon! After a week or so this came back as sucessful on the condition that we up our deposit from £30,000 to £36,000 i.e 12.5% to 15%. They could see from our savings that this was doable so we of course agreed. As we had already found our house and it was a private sale, we immediately applied for a full application which of course went back to the underwriters. A surveyor came out to value the house etc and after another week or two we had the mortgage accepted to borrow £204,000 and were able to quite quickly buy the house as there was no chain either side and owned the house from October 2013.

The first 2 years at 85% LTV was at 3.89%. After 20 months we were able to switch products 4 months early and because of house price increases we now have a 5 year fix at 2.59%

My default drops off in July this year. It was an unnecessary and silly default from my perspective, but never the less an accurate reflection of my financial error at the time. Santander were brilliant, I cannot moan. I was up front and honest with them, they listened and were honest back with me. My default was under 3 years old when we applied with them and only paid off 5 months before, yet they still gave us a mortgage which was around 4 times wages - we had no other debt,

I realise now that going direct like that was risky and maybe we should have used a broker, but it worked for us. My reflection was I feel that our complete honesty round the default and financial history was what got our mortgage.

Sorry for the long post, I just wanted to basically say that a default although limiting is not the end of the world and does not stop you getting what you want financially - it just took a little longer with all the referrals to the underwriters!

Jennifer_Davey

Thanks for sharing Richey!

Glad to hear that someone else was successful! Still waiting for news back from our broker! Sent her the credit reports last Monday, not sure when to send a friendly chasing text!

Richey_

Hi Jennifer

I was in a very similar position to you in that my other half a credit rating was essentially perfect and I was the problem, I know what you mean about pressure. As reassuring as the other half was you feel an immense blame and pressure to yourself for it to all come through!!

I am sure that you will be fine, in my experience total honesty and if that means accepting that you have been a wally and made a mistake then so be it, better I felt to an outsider who I felt would be judging me to accept my mistake rather than try to blame others etc for my error.

Wishing you the very best of luck, I know from experience just how stressed you are feeling right now.... I really hope it all comes through with what you want/need :beer:

Jennifer_Davey

That's exactly how i feel! I messed up, i know that. I fixed it and i've been stressing for the last year over every direct debit and every payment to ensure nothing else goes wrong. I've done my absolute best to improve my report and hopefully the lender will see that!! Just glad i made the mistakes at this age instead of later on!!

cwaless100

that's a great story! Maybe I should try Santander instead of NatWest. Natwest take a long time to give a firm answer if nothing else.
My adverse credit has never been more than £1000 and majority is over 4 years old with no bad ratings since then (just a bit of id fraud, but that's all removed and documented) Do you think the private sale had anything to do with it? I'm hoping to get a mortgage but if not, my parents are buying the place and I will but it off them as soon as I can get a mortgage! I too an going on my experience from failed attempt last time and have chosen not to go with a mortgage advisor first time round.


Jennifer I read somewhere that if you want to get anywhere chase your solicitor/broker/estate agent every day! and so far in my experience with the estate agent and NatWest at least that's definitely they way to do it and get some quick actions and responses. Send them a text!

Richey_

Hi cwaless I do not believe the private sale glad anything to do with it, as what is an estate agent really just someone who markets the house for sale. Any purchase will always go through a solicitor and if a mortgage involved through the bank/mortgage company.

Wishing you all the best, I really hope that it all works outs for you

Jennifer_Davey

Gonna wait till this evening when it's been exactly one week to the hour haha, then a friendly text i will send!!!

Why is this the most terrifying thing i've ever done

(and i've got a four year old so this beats childbirth!!!)

Richey_

Good luck, really hope that it goes well 👍🙂

cwaless100

Hahahaha, I always said I wasn't sure I wanted children as childbirth scared me so much, but maybe I will rethink, if its less scary than this!
Natwest have just told me they have received all previously requesedt documents so fingers crossed for underwriters now!