Possibly dodgy mortgage broker and other questions.

bibek

Hi All,

I am in the process of applying for a mortgage after finding a house I like. Not a first time buyer so I roughly know the process. 50% of deposit is gifted from parents.

Using a broker to apply for a mortgage with Nationwide however just found out my initial application was declined (found myself this morning after calling Nationwide as I had my suspicion) and my broker has put in another application yesterday evening obviously without informing me that previous application has been declined and why. Below is the timeline:

Monday 17/09/18 - Mortgage application submitted (sent payslip, bank statement, gifted deposit form, address proof etc).Get a text and an email from nationwide saying product has been reserved etc etc.
Wednesday 19/09/18 - Chase up broker mid-day and get told the application has been "passed for review" which unfortunately is a slow process. Broker says hes expecting an email and will update me once he gets something.
Thursday 20/09/18 - Texted my broker about 4:30 PM asking whether its too soon to chase it up as I presume hes not had the email yet. I also let him know that im a little bit anxious now. About an hour later I get a second text and email from nationwide saying a product has been reserved etc etc and shortly after his reply from him saying "My application on monday was reviewed for number of reasons but nothing really of concern". I also get an email from him with a new DIP (slightly lower loan amount than what we had agreed initially) and a KFI. Says hes out of the office today (not sure if thats true) but he will contact me on Monday to collect the home buyers survey fee and product reservation fee which nationwide charge of £99.
Friday 21/09/18 - Ring nationwide and give them the first reference number and as I had thought it'd been declined and a few queries raised. I simply said thank you and hung up.

Now the questions I have:
1) Do Nationwide run a credit search prior to declining the mortgage or was its simply due to the queries they had its gone to a "decline" state until theyre satisfied with the query responses? I have been checking my noddle account and although it shows a search from nationwide that was done about a month ago when I got my first AIP/DIP it shows nothing as of this week. Not sure whether thats due to noddle being slow or no searches have been done.
2) Clearly my broker didnt think it was important to tell me that my original application has been declined. I am not sure how to proceed now. Do I just keep quiet and proceed as if im not aware of any of this or call him and confront him ?
3) He's clearly put in a second application probably with different answers to the application that was declined. Will this incur a second search in my name possibly causing further issues with my credit? Currently I have 5/5 credit rating (with noddle) not really sure whether it means anything but generaly, no loans (except student finance), no debts just steady income + rental income from my previous house.

Apologies for the long post. Any advice is appreciated.

ACG

You need to speak to the broker. The way you describe it sounds dodgy, but it could be that Nationwide told him to re-apply and change the answers.

bibek

ACG wrote: »

You need to speak to the broker. The way you describe it sounds dodgy, but it could be that Nationwide told him to re-apply and change the answers.

Thanks for the response. Do you know if that happen often ? One of the queries they raised which I found out over the phone was to change my student loan amount as it was incorrect by £7 so could be a plausible explanation. Conveniently he has informed me yesterday that he is out of the office today so not sure whether to ring him anyway and see if he picks up.

kingstreet

Nationwide re-keys can be required for a number of reasons.

For example - an appearing middle name is one. The broker isn't given it, does the DIP then later it appears on official documents. Case has to be re-keyed from scratch.

Nationwide has a managed decline system. This means a case can go to decline for something trivial, like a payslip item not being included in affordability when it should have been. They can decide your travel to work costs more than the amount entered. It takes them two days to get in touch and the broker can often sort it out on the phone with them in ten seconds.

There is no way for anyone to accurately answer you. You are going to have to speak to your broker and ask them what is going on.

bibek

kingstreet wrote: »

Nationwide re-keys can be required for a number of reasons.

For example - an appearing middle name is one. The broker isn't given it, does the DIP then later it appears on official documents. Case has to be re-keyed from scratch.

Nationwide has a managed decline system. This means a case can go to decline for something trivial, like a payslip item not being included in affordability when it should have been. They can decide your travel to work costs more than the amount entered. It takes them two days to get in touch and the broker can often sort it out on the phone with them in ten seconds.

There is no way for anyone to accurately answer you. You are going to have to speak to your broker and ask them what is going on.

Fair enough, broker did seem geniune hence why I decided to go with him but just his actions raised my eyebrows. Going to call him in a minute and see what explanation I get. Do you know if Nationwide would have done a search on my credit history ? As I mentioned in the first post that it doesnt appear in my search history that I have been keeping track of via noddle but im unsure if thats because its taking time to appear or they simply havent done a search.
Also, at what point do nationwide charge their £99 product reservation fee ? In instances like above where its been declined is that fee refunded or do you simply lose it ? I wouldnt think its the latter.
Thanks.

bibek

Update: Just spoke to him and he did re-iterate what kingstreet said that its been declined but thats a normal process for them apparently. Instead of putting application on hold, they will raise query and decline it so once its submitted, it goes back into the cycle and gets picked up again.
He stated we are still moving ahead with the original application but as its been declined and resubmitted, its generated a new reference number which is what was sent to me.
He isn't charging me any fee so there is no gain from him being deceitful as his commission relies on getting my application approved (I think) but still having had too many bad experieces in the past, I tend to take a bit of a sinister approach.
Thank you ACG and kingstreet for your input.

amnblog

Classic example of confusions that arise when the Borrower does not wait for the Broker and goes direct to the Lender.

When using a Broker, use the Broker, do not contact the Lender direct unless you want problems and misunderstandings.

bibek

amnblog wrote: »

Classic example of confusions that arise when the Borrower does not wait for the Broker and goes direct to the Lender.

When using a Broker, use the Broker, do not contact the Lender direct unless you want problems and misunderstandings.

Well followed your advice about going through the broker. Hes been out of contact since I spoke to him last week. Left him a text yesterday, no response. Called today morning and left voicemail and havent heard back.

Just rang the bank to get the status and apparently, he hasnt even submitted the application. The advisor on the phone suggested i should ring up my broker and ask him to submit the full application.

Sounds like I need to get a new broker. :mad::mad: