NatWest Mortgage Anxieties

jsfoster

Hi,

There is nothing anyone can do but I’m going to post because it will make me feel less anxious rather than reading loads of stories on here.

In a real short time we found a property we really liked close to my wife’s family and we put our current house on the market, our house sold and there was some gazumping, we sold for £176k which was £6k more than asking which leaves us £57k equity.

The property we want to buy we negotiated £232,500 but it’s worth more than that it just needs work doing.

We’ve used a broker who has put us with NatWest with our lending ceiling being £199k.

We have applied for £197,500 and hope to have £20k for costs and works.

We do have debts, loans and credit cards, all cards on 0% and we declared all of these.

My issue is that my last 3 months bank statements aren’t great, we weren’t selling. We’ve spent quite a bit on home improvements £600 in one month and on average £300 a month on take aways or eating out.

I do tend to go around £600 into my £1500 agreed overdraft which is my concern.

I’m terrified (I don’t know why because it isn’t the end of the world) that the application will be declined based on account conduct.

We got an AIP and then two days later the broker advised we passed initial underwriting.

It’ll be 5 working days I think before we hear about the ‘further information’ they will review.

The good news is we’ve massively reviewed our finances to change things cancelling off £60 of gym membership etc but this isn’t going to look good for a further 3 months.

Interested to know peoples thoughts....

jsfoster

Also, I should say I could close my £1500 overdraft on Wednesday, if I did this would it make a difference?

Based on the voluntary commitments next month we will have £140 per month extra - aside from not eating stupid takeaways.

Our Mortgage would be 84.9% LTV.

ACG

If you have got to this stage, you should be fine. If affordability is tight and they decide to add in the overdraft then you may find the loan amount gets reduced but I am sure you will be ok.

I wouldnt worry about clearing the overdraft if you prefer not to. If the underwriters need it clearing they will tell you.

jsfoster

Thanks for the reassurance. I like to operate my finances so that every bill is paid on my pay day so I would never miss a payment.

I!!!8217;m not constantly in my O/D.

Affordability was tight but based on the figures they!!!8217;d lend £199k so we opted for £197,500.

If they reduced the amount it wouldn!!!8217;t be the end of the world as we can afford more deposit.

Flossasaurusrex

I think you'll be fine.

We unexpectedly found a house we wanted earlier than planned, and went for a NatWest mortgage. Had lots of expenses on holidays and social stuff and nothing came of it! Also have credit card and other half in overdraft, with 10% deposit. We got our formal mortgage offer last week

I found NatWest were really quick at getting back to us. Hope you have same experience

jsfoster

Thanks for the replies.

We are currently with the Nottingham Building Society and we do have Early Repayment Charges but they can't even speak to me about application until the end of next week which is just too long to wait regarding porting, also from my calculations their rate will cancel out the charges.

I was tempted to keep the appointment with them though incase NatWest doesn't get accepted.

Thanks for the reassurance though, I'm hoping it will all be good!

At the moment they are processing 'further information' received on 8 August (according to their intermediary site) they won't get my further info until L&C get it tomorrow if L&C process the same day so I'm expecting to hear by Thursday???

jsfoster

Good news! Mortgage all approved subject to valuation! It was declined due to NatWest having flags on my account history with them for absolutely no reason so these were removed and it was all approved.

Quick question, if we are borrowing £197,500 but Mortgage Advisor did affordability of £199,000 could we easily at this stage increase to that £199,000? We went down to the £197,500 because of LTV but actually our product is 90% LTV anyway!

Would this be a whole new application or a simple amendment following NatWest looking at the ceiling amount they may lend us?