What to do next?

kelwin1989

Hello,

Me and my fiance have found our perfect home. We have gone through all the standard measures, we are up to the point now, where have paid the search fees to our solicitor only to get a call from our lender saying that something has created a "marker" its something to do with one or both of us having an issue with the lender before.

I previously had an account with the lender when I was 16 (I will be 27 in September) it got shut down, due to non-payment. I instructed a particular company to take a direct debit on the 1st of the month, which is when I got paid from my Saturday job back then. However the company i instructed tried taking it on the 14th, 21st and 28th, due to the type of account I had, the bank would not let the money go, but i was still getting charged the fees, incurred, for them to trying to collect it.

I approached the bank and instructed to them to stop it and to create a payment plan to pay the overdraft charges off, the bank advised it had gone on to debt collection and there was nothing further they could do. Anyway I spoke to debt collection and have paid the debt off with bank statements as proof.

Me and fiance have approached this bank (years later) to obtain a mortgage and due to that problem years ago, they are now considering whether to give us the mortgage in the first place, the financial adviser for the bank stated, it was nothing to do with my credit, as I had passed that, it was due to an internal process, it may not of come up if I went elsewhere.

They have advised that it is a 5 day turn around, so I am panicking and stressing over the weekend.

Worse case scenario and they decline our mortgage, am I able to approach another lender? Or do I have to give it time, if so how much?

We love this house, and I don't want to be the reason we lose it and cause my fiance to have a poor credit score due to a rejection of a mortgage, all due to me, for something that happened in my youth.

Any help and advice would be appreciated.
Thanks in advance.

ACG

You can go to another lender without any issues.
The new lender may (probably will) ask if you have had an application declined.

Do you have a Mortgage offer?
If not, why have you instructed the searches before the offer has been issued?

kelwin1989

Yes we had the mortgage offer (some call it a mortgage in principle). Then we got advised by the lender, that we can go start looking at properties, we found one put an offer in, had it accepted. Went to lender the day after to finish the application process, we paid the bank the valuation /surveyors fees, received the report, once we had received the report, spoke to both bank and solicitors and they said it was fine to proceed.

This is our first-time, hence I am getting myself into a state!

Is it worth pulling out of the bank now, before we may get a decline and seeking another lender? If they do ask, can I just state it was down to an internal process, as everything else has come back fine?

ACG

A Mortgage in principle is not a Mortgage offer.
I would put a hold on any searches with the solicitors until you have your full mortgage offer and this issue is resolved one way or the other.

Who is your lender?

kelwin1989

So in answer to my question, if we do get a decline, I may approach another lender? Correct? If I mention this issue I am having / had is this going to effect it? Our mortgage advisor said, it only came up, because it was with them. We were fine with the affordability check, our credit reports came back fine. Just this little thing that happened over 7 years ago!!! Do I have to wait, before I approach another lender?

cahillg81

Is the lender NatWest?

kelwin1989

Yeah, how did you know?

cahillg81

Fairly common problem, this used to be a straight decline with them but they are now taking a more lenient view. You should be ok. If not there are other lenders who will still lend as you are at least passing credit scoring.

kelwin1989

Natwest have come back today and said they are not happy to proceed? What next?

Thrugelmir

You'll need to approach another lender.

Just this little thing that happened over 7 years ago!!!

Lenders for good reason take a more cautious approach, and it's nothing personal against you. Just standard policy.

kelwin1989

I've seeked the advice of a mortgage broker, who was recommended to me, but he keeps mentioning Santander, and I've bad stories, we failed due to a default that I caused back in August 2011, even though I have proof that I paid it off and it was for £466.

Natwest have said they can do an application with just my fianc!, as it was as a result of me that our application can no longer proceed. Or do we go to another lender as suggested? In that case, do we try a joint application again?Or my fianc! do his own application with another lender?


Scared and panicking now.