Success story - Nationwide mortgage offered even though I have a default!

Wacky103

Hi All

I wanted to share my story and timeline with you all, mainly because I am over the moon about the outcome, but also to show others that sometimes there is hope, depending on the rest of your circumstances.

I have a default which was first registered 2 years and 8 months ago, which was for just over £1000 with Barclays Bank. Shortly after it was registered as defaulted, I started paying the debt collection agency back in monthly installments of £50. I was lucky enough to have saved a fair amount of money since then due to a new job, and agreed a partial settlement, which was paid in November 2015, and was marked as such on my credit file. I have no other outstanding debt, and only a credit card in my name which is paid off in full every month, also no other adverse history. I am not on the electoral roll at my current address (I just moved in January 2016 and it hasn't been updated yet on my credit file even though I have applied for the change.)

Just to note, I have a 75% LTV due to using the HTB Wales scheme for the other 20%, and have a 5% deposit of my own. Property price is £101,000.
I saw a new build back in December 2015 in Wales, reserved it, and was pointed towards a broker the builders recommended. Long story short, she put in applications with Natwest, Halifax, and Principality BS, which were all declined. She was aware of the default, but by this point I was worried that all the applications had been done and it seemed like she was just working her way down the list of lenders for HTB Wales. Due to the build not being due to finish until August/Sept 2016 anyway, I decided to wait until late Feb 16 to see if I had any other options. Luckily the builders have been exceptionally kind to me and held the plot since December, despite there being high demands for the plots in the first place.

I did some research online, and spoke to a few different brokers - one said high street lenders would be fine, one said I had no chance for another year or so ... and the broker I eventually chose said it 'may' be possible, but she would speak to some lenders first and see what they said. She contacted the BDM for Nationwide and explained my situation, and the BDM seemed to think the application would be fine. When she told me this, I was extremely sceptical (I have posted about this previously on this forum a few weeks ago), mainly due to the failures with the other lenders a few months prior.

Anyway here is my timeline for Nationwide :

10/03/16 - DIP completed - 'accept'
11/03/2016 - Full app submitted, text received confirming this. Only asked for last months bank statement and last months payslip, uploaded by broker same day.
15/03/2016 - Text received to say valuation booked for 19/03/2016.
21/03/2016 - Text received to advise Valuation has been approved.

23/03/2016 - Text to say offer issued! Broker confirmed offer is as expected and for correct amount!

As you can see, the turnaround with Nationwide was pretty quick, less than 2 weeks from full application to offer.
I am so happy, and feel completely lucky and blessed to have got this far! I am in state of shock really too, that they only asked for my most recent payslip and bank statement, and didn't look into the default in more detail, or ask for proof of deposit.

Of course I know things can go wrong at any point up until completion, and I'm keeping my fingers crossed that they don't ... but I wanted to just share my story and thank the people who have re-assured me and offered advice on here on my previous posts.

Now I have a long but exciting wait for the build to be finished :j

kingstreet

Is the default visible on the Experian version of your credit file?

Wacky103

Hi Kingstreet - the default is visible on Experian, it's actually visible on all 3 of the CRAs

kingstreet

Interesting. The problem is we're all conditioned by our BDMs not to attempt anything with adverse with Nationwide and our experience from a number of failed speculative DIPs when we haven't known about adverse suggests Nationwide is best avoided.

You got a result, but anyone reading this and thinking an application to Nationwide will always be accepted with historic adverse may end up with a wasted hard search like those your previous broker tried.

Problem with a credit scoring lender is however many BDMs say yes, we might do it, it's the computer that decides and it isn't them carrying the can for a wasted search and you could end up with ten knowing some of the BDMs we deal with!

Wacky103

kingstreet wrote: »

Interesting. The problem is we're all conditioned by our BDMs not to attempt anything with adverse with Nationwide and our experience from a number of failed speculative DIPs when we haven't known about adverse suggests Nationwide is best avoided.

You got a result, but anyone reading this and thinking an application to Nationwide will always be accepted with historic adverse may end up with a wasted hard search like those your previous broker tried.

Problem with a credit scoring lender is however many BDMs say yes, we might do it, it's the computer that decides and it isn't them carrying the can for a wasted search and you could end up with ten knowing some of the BDMs we deal with!

Tbh I am a bit suprised mine went through to offer and without any hiccups (so far) ... I guess I may be one of the very few lucky ones in this circumstance and having read alot of posts on this forum over the past few months, it does seem that way! Hopefully this thread won't mislead anyone who is in a similar situation as I definitely don't want to do that ... I just wanted to share my very rare positive experience

Ayslynne

Hi Wacky103

This is great news! It's positive and reassuring to see this as I currently have 2 defaults on my credit file one for £300 on a credit card and one for £37 from Virgin Media. Both registered 2 years ago and paid off. I've had 2 agreements in principle one from Halifax and the other from the Royal Bank of Scotland.

We are about to start a full application and I am still concerned that it will be a big fat no from the underwriters but your positive post has given me some hope

Fingers crossed the rest of the process continues to go smoothly for you

Wacky103

Hi Ayslynne

Thanks for the reply - I never thought I would get this far! I think I may have been extremely lucky this time as I know people have been turned down for less and so I don't want to give anyone false hope ... Perhaps my LTV being 75% and also having no other debt & a good credit file (aside from the default!) probably helped my case.
I wish you luck and hope everything goes well for you - keep us posted and let us know how you get on.

MortgageMamma

I'm really pleased for you Wacky103 but I'm struggling to get my head around why Nationwide have allowed this (not trying to put a dampener on your good spirits btw). Your broker must have a very good BDM/relationship with Nationwide especially since the default was only partially settled. Perhaps the underwriter had been for a few pints at lunch!

Whatever the reasons, it is unusual for them to do this, and I wish you the best of luck with your purchase.