Natwest application via broker - any advice from brokers on here welcome

JerryT000

Hey all,

I have applied for a mortgage via a broker. They have found Natwest to agree to the mortgage. The Loan amount is £324k and LTV is 67%. They submitted my application in Decemeber

From checking my file, NatW carried out the credit check on 10th December. I was advised by the broker the lender then wanted valuation & admin fee which was paid. Valuation carried out 16th December. Broker confirmed valuation came back fine and in line with assumed value pre-application. Broker said would advise on next steps regarding offer etc.

Now broker has come back saying NatW want proof that my CC balances has been repaid. Broker submitted app with CC amount as zero. I have £10.5k of CC debt of which £7k is interest free on one card and remaining £3.5k of it is on a different card.

I can only repay £2k max at this time of the latter card. Interest fee £7k i was hoping to stooze on. Annoyed as I told broker my CC balances prior to app and that I would not be able to clear fully. Please can any brokers or succesful NatW applicants advise on their experience with NatW?

Broker gave me impression that following application and subject to successful valuation the mortgage would be agreed. I thought they would advise of any stipulations before the valuation stage (for which I have already paid).

I have told them to advise me on what impact (a) £10.5k debt and (b) £8.5k debt has on the application and they said they would need to ask the underwriter. Now I am worried the underwriter will think I lied and cancel the application. The truth is I did not know broker would submit app saying no CC balance.

Is this a game breaker ?

Thanks for your help.

amnblog

It is not a question of lying. The broker has submitted the application with these debts to be repaid - hence the lender's query.


If that is not the case the underwriter will be told and provided it fits affordability the case will go to offer on the basis that the prescribed debts will be kept.


Rely on your broker to sort this for you and don't confuse yourself on here.

JerryT000

amnblog wrote: »

It is not a question of lying. The broker has submitted the application with these debts to be repaid - hence the lender's query.


If that is not the case the underwriter will be told and provided it fits affordability the case will go to offer on the basis that the prescribed debts will be kept.


Rely on your broker to sort this for you and don't confuse yourself on here.

Thanks for your feedback. I cautiously assumed that following credit check & valuation this would then lead to offer as both came back fine. The broker indicated the same and prior research suggests that in many cases with NatW the bulk of the underwriting is done prior to valuation.

I would like to repay nothing ideally, however this will more than likely impact affordability (going by Natw calculators). I can afford to repay £2k and I could even clear the lot (would need a few days). The reason I am worried to clear the lot is that I have no idea if clearing it would even lead to an offer. If clearing it guaranteed me the offer I would not mind. But I could clear the whole lot and then the lender/broker could come back with another condition with no g'tee of offer. Which would have meant I cleared interest free debt for no reason and effectively depleted 90% of my savings in the process!

Apologies for the moaney nature of my posts lol.

ABBF08291

Out of interest do lenders/underwriters consider whether credit card balances are interest free in their affordability checks? I suppose not but isn't it very different holding e.g. £10k on an interest-only CC for 20+ months and holding it on a normal CC at 18% +

amnblog

ABBF08291 wrote: »

Out of interest do lenders/underwriters consider whether credit card balances are interest free in their affordability checks? I suppose not but isn't it very different holding e.g. £10k on an interest-only CC for 20+ months and holding it on a normal CC at 18% +

A credit card debt is treated as being repayable on commercial rates in all cases.

caprikid1

"depleting 90% of my savings in the process!"


Not sure I would really class borrowed money from a credit card as savings but obviously you have different concept of savings to me.

JerryT000

caprikid1 wrote: »

"depleting 90% of my savings in the process!"


Not sure I would really class borrowed money from a credit card as savings but obviously you have different concept of savings to me.

Understood and agree. However I have a stash of money I have kept aside for cash needing emergency. Incorrect according to saving and debt rules of thumb. However I don't consider this to be part of my overall finances, however I can use this in such an emergency. If mortgage offer was guaranteed would have no problem. However I would hate to deplete my only true cash left (all my true savings have gone to deposit etc) and then find it was for nothing.

copperclock

In an emergency, couldn't you use the card? Surely securing the mortgage should be the priority here, rather than immediate access to cash.

cahillg81

you dont need to clear the debt to get the offer it can go as a condition of offer that the debts are cleared prior to completion.