Historical default, broker wants to place me with same lender?

ellison007

Thank you David and ACG,


I did the NatWest AIP in branch with their Mortgage Advisor. I did likewise with the Halifax Mortgage Advisor in branch & their AIP. I am just waiting now for the new build plot to be released prior to full app.


I have always been a little worried about what records NatWest & Halifax have on their 'back office' system relating to my previous defaults with them (all of which were more than 6 years ago & have been fully satisfied) - I suppose I need to weight up whether or not mortgage lenders give potential borrowers a 'second chance' if defaults were more than six years ago?


I will consider using a broker - I think that is good advice.

ACG

I agree wih David, Natwest/RBS are a lender who tend to hold a grudge - saying that I think the AIP in branch is the same as brokers so should be accurate - dont hold me to that though.

Halifax is a soft footprint and not worth anything in my opinion.

BoBaggins

A current account with Halifax was included in my BR and we've just managed to get a mortgage withHalifax. My BR was in 2009 so well over the 6 years

student87

This would be great news if possible!

Thrugelmir

ellison007 wrote: »

Hi David, in your experience if a potential borrower has a historical default (more than 6 years ago with a particular lender) is the bank usually willing to give the customer a 'second chance' as it were?

Default is a relative term. As soon as contractual terms are breached then technically an account is in default. How the default is resolved or not as the case maybe, is what matters.

People are creatures of habit. As far as a Company is concerned once bitten twice shy is the commercial reality. If circumstances dictate.

student87

Would it help if I start banking with my prospective lender? Ie open a current account with Barclays or whoever I am hoping to be placed with?

My wages would be credited in there.

David_White

In the medium/long term having your main banking with the chosen lender may help (or hinder!) you however I wouldn't suggest doing it literally just before an application.

bamgbost

If natwest.. I would avoid.
As someone above has commented... I had a similar situation with them.
I had a default added to student account in 2010. I got it overturned and removed in 2014 via ombudsman.
When i applied for mortgage last year it was declined for no clear reason. I had to write several times quoting freedom of information act before they finally.told me that fundsmentally. I am blacklisted and will never take my custom again due to historic issues. (I.e. the default)

So if it was me swerve it. I was advised to go with them from broker too

David_White

I have a decent understanding of the computer system the RBS group uses from previous employment experience.

They call their system "back office" and it's extremely old (think MS DOS)... this is part of the reason they've struggled so much to offload the RBS branches!

They grade each customer internally and have certain "flags" or "markers" which can effectively stop you from ever conducting further business with them.

You could pass an AIP with them but when an underwriter conducts their check they will check for any flags or markers.

ACG

David_White wrote: »

They call their system "back office" and it's extremely old (think MS DOS)... this is part of the reason they've struggled so much to offload the RBS branches!

Thats the one where you have to key in different numbers isnt it?

I worked in the credit card department and we had a system from the 70s where we had to use letters, then I had limited access to the banking system which was just as much of a nightmare.