Declined proceeding with a Mortgage as partner had unarranged overdraft usage of £8

Dewy89

Hey guys,

First post and first time buyer, We have just a telephone conversation with someone from RBS about an application for a mortgage and we were declined as my partner had an unarranged overdraft usage of £8 which was for around 2 days in November last year which she said would clear by march but the house might be sold by then. I think personally this is a pretty pathetic reason to decline as our income is greater than the cost by a considerable margin.

Are there any mortgages out there that will work with this in mind and can you recommend any other way that we can purchase this house.

Thanks

ACG

Little surprising that is the reason, but if you are applying for a 95% mortgage and/or gifted deposit etc, then all of those things combined might be a concern to the underwriter.

Have you tried a broker?

kingstreet

RBS/NatWest will not accept poor current account conduct within three months of a mortgage application.

That means no unauthorised borrowing charges, no 'unpaids' and the amount is not taken into account, so however petty you might think £8 is, it triggers, so it's relevant.

It's their 'thing' and it's well known.

Plenty of other lenders, specifically those who don't hold your current account, won't have a problem with this. Particularly those who won't want bank statements, of which there are several.

A broker will be able to find the one which best suits your needs.

Thrugelmir

Dewy89 wrote: »

I think personally this is a pretty pathetic reason to decline as our income is greater than the cost by a considerable margin.

Unlikely to be the real reason behind the decline. Did you push then for an explanation?

Dewy89

Thanks for your advice, A broker looks like the only option for now. I did ask if there was like, so that's it then we cant do anything else and she seemed pretty determined on her answer of no so we were just left a bit shocked about it.