Natwest Mortgage refusal

DM128

Can anyone help me. I was approved for a mortgage with Natwest for £124000. The house fell through but I was able to gain another property and only needed £112000 (£12000 less). Natwest then refused the mortgage. No reason given apart from I failed their check for the 2nd application.


There was no change to my credit during this time. But it seems that the first approved application caused Natwest to refuse the 2nd one even though it was for less money. It appears that Natwest have stopped me getting the lower mortgage. I had to go to a different lender and pay a higher interest rate because the footprints left on the credit score by Natwest.


This cant be fair can it, Natwest gave me a mortgage and then took it away when I asked for less money because they did not use common sense with the application and let the computer make the decision.


Does this sound unfair. Any advice would be most welcome.

Candyapple

I'll move this thread over to the Mortgages board for you, hopefully someone there can advise you.

Oakdene

Did you get a mortgage offer or an Agreement (Decision) in Principal?

amnblog

No, it doesn't sound 'fair' but the market is not fair.


Lenders can change their scoring as and when it suits them.


Not sure what you want to happen from here?

ACG

Did you apply directly or through a broker?
The reason I ask is recently I have had 2 people apply for mortgages and then change the property/purchase price (one of them actually increased) and no new credit check was needed.

Did the LTV stay the same?

I really like Natwest at the minute and I would say they are a lender who does have a common sense approach, but you need to pass the credit score first.

DM128

Hi. Thanks for the reply. It was through a broker. I'm not sure about the LTV

DM128

Hi. It was agreed. The application had been agreed. Thanks

ACG

Was your deposit (as a percentage) the same on both applications?

I could be wrong, but I am wondering if your broker has done this the wrong way and resulted in the new credit check being carried out unnecessarily. Difficult to say without knowing more.

DM128

Thanks for the reply. I feel that Natwest have disadvantaged me. I have gone to the FOS about this.
I feel that they offered me a mortgage (agreed) and then when the sale fell through this application was used against me not to be able to get a cheaper mortgage with the same company.

DM128

Thanks. The deposit was 10% on both properties. The first house was £129000 and the second was £125000.

ACG

You asked the lender to do a credit check on you.
Your application then changed through no fault of Natwest. I doubt you will win anything but you never know.

On a side note, your initial complaint has to go to Natwest. Only once they send you a final response can you go the FoS.