Advice please - Nationwide Mortgage

KatieLou04

Hey,

I'm after some advice... we applied for a mortgage though a broker and they chose Nationwide, DIP went through fine. Everything else seemed fine, we were waiting for the valuation to be done, day before valuation we found out underwriters wouldn't give us the full amount we required. We didn't know what to do so told the broker to do what she thought was best. She then put the application through Skipton, they declined at underwriters for what reason were not sure of! In the process of putting it through Skipton, they found out the reason Nationwide wouldn't give us the full amount was due to partners credit cards, approximately £3k.

Broker has now gone back to Nationwide to see if they will agree to the full amount if we agree to pay the credit cards off. Yet to hear anything, broker said we should know by the end of tomorrow.

Worry i've got now though is since starting this process, our credit score has dropped massively! Originally i was above average and my partner just below. We are now both between fair and poor!! For some reason, Nationwide did 2 hard credit checks on the same day which our broker is looking into and then the Skipton one all in the space of a couple of weeks.

If nationwide don't agree to the full amount, how much is our bad credit scores going to affect us down the line when we try again?

We're FTB using the HTB scheme. Have the deposit ready, found the perfect house but now struggling to get a mortgage offer. Stressed isn't the word!!

Any help of advice would be really appreciated!

Lilla_D

Well, if a lender comes back with a smaller amount or a decline decision, then the broker should have got to the bottom of it instead of jumping ships. In most cases the issue can be resolved.

Anyway, that's history now. Looking ahead, don't worry about the credit score from Experian/Equifax, because Nationwide does its own assessment instead of relying on these credit report scores. However, if they do another credit check for whatever reason and see the Skipton search, then the broker will have to explain it.

Most importantly though, if you still get less money offered than what you asked for, could you come up with the difference? If you (family?) can, then that would solve the dilemma, but if not, then you may try a 3rd lender. However, you will risk a decline decision purely based on the number of searches, so the broker will have to tread carefully and still won't be able to guarantee you success.

KatieLou04

Yes i did query why they went straight to Skipton rather than finding out the reason. I just assumed it was because of affordability and that was the only reason.

Nationwide offered £12k less to what we needed. We might be able to get half that but i don't think we would be able to get £12k even with family help.

I personally don't want to risk a 3rd lender, think it will just do more damage.

The broker was "confident" that everything would go through fine with Nationwide at the beginning but now i doubt everything she says. When she did the mortgage calculator for our DIP she said we could get up to £200k from Nationwide but we only needed £147k so didn't think we would have any issues...how wrong!

amnblog

Was the broker not aware of the credit card debt?


Did your partner recently build it up?

KatieLou04

Yes she did know about it.

Long story short but the debt on the credit cards isn't actually my partners, his mum went through some difficulty and used his and she was bankrupt but only pays the minimum payment back each month. I know it's irrelevant it's not his debt and it's all in his name but it's so frustrating that this could stop us from getting a mortgage

KatieLou04

Spoke to the mortgage broker and its now been passed on to the final assessment.... WHAT DOES THIS MEAN?


Will we get an offer? Would they have passed it on if they were going to say no?


I cant cope with the waiting game any longer. She said it would be another 48 hours but due the weekend it will probably be Tuesday before we hear anything! This has been the longest and most stressful 6 weeks of my life!!

Frances109

Let me know how you get on Katie! Ours has been passed to final application too and I'm petrified!!!

KatieLou04

Still not heard anything

Will give the MA until 4pm tomorrow and then I'm ringing her!!

Frances109

Good luck! Ours is having the valuation today so I really want to know the result ASAP :j

KatieLou04

So the valuation report came back today, the house has been down valued!!!

So we have a choice of 3 options...
- try a different lender which means doing the whole application again... we've already done 2!
- pay the difference, house was devalued by £16k, MA thinks the builder will accept £7k from us on top of our £9k deposit. We will have to ask family for the extra £7k if they are willing to help!
- or just give up completely and wait about 12 months until we've rebuilt our credit reports

Any advice I'd really appreciate. Got to let the MA know by a the morning what we want to do

KatieLou04

Because Nationwide are known for undervaluing new builds...

The other 7 properties on the development have have all been valued at the asking price, we're the only one who have used nationwide and have encountered this problem.

I don't think our credit reports could take another hit trying another lender. It's been a long 7 weeks since starting the application and I don't want to give up now.

I've asked the MA to ask the builder is he will accept £5k on top of our deposit.