NATWEST MORTGAGE APPLICATION - ITS A JOKE! HELP!?!

dunstonh

A decision in principle is basically "if what you have told us so far is correct and no new information comes to light then we will lend you the money as long as we are still using the same lending criteria when you make the application".    In periods of market uncertainty, the lending criteria changes frequently.  Even daily.

yes my credit utlilisation on my credit card is high.. like 90 percent 

That is damaging.   It varies with lenders but you whilst under 25% utilisation is good, 25-50% effectively neither here or there, 50-75% a minor negative, over 75% is a significant negative.   It means you need to have more positives in your favour elsewhere.  If you are pushing limits all over the place then it could be enough to swing a decision to a rejection.
Whilst they may have asked the balance for the DIP, they may not have asked the utilisation of the credit limit.

joa02ds

sully1311 said:

Natwest's site says they don't do a hard check for AIP.

yes i went into the branch and he says the same.. so he has raised it as a complaint as i defo have a hard check on my equifax. i called them today to see if that was only detrimental activity recently and she said yes. natwest say they dont hard check so its a mystery when they did hard then soft as the follow up and should be other way around. ;/

joa02ds

Keano24 said:

You said your CC utilization is 90%. Is that on interest bearing cards or 0% promo?

If it is on interest bearing cards then it gives the impression that you are reliant on credit and cannot afford to clear your balance and that is maybe what caused the rejection.

yes i agree - though this utilisatoin hasn't changed from the initial acceptance. 

KAP0365

joa02ds said:

KAP0365 said:

joa02ds said:

Can anybody relate or help in this scenario as I feel I am in a losing battle. Which they can not help with or explain!

I have a mortgage in principal agreed with NatWest. 
In agreeing this they did a hard check on my credit file and approved.
I have all my docs and deposit collated 3 days later. 
Today we (broker) submit the application   -which is rejected due to credit score being lower. 
The only activity which has lowered it in 3 days is their search. so they are rejecting based on their own activity.  everything else is in a good state. 
They say they can not manually review and computer says no. 
I am now left with a negatively affected score and no mortage offer.
Surely this is illogical but im not sure where to go - 
Any ideas?
thank you 

You should re check with your broker. They don’t use the made up numbers that we see, and they search multiple agencies (for us, Transunion and Equifax). More likely that they said it’s due to your credit report. Automatic computer process has thrown up something that doesn’t fit criteria. Your broker should have been given this beforehand and should have matched you to their criteria, unless is it an online free one? Have a look at your report on all the credit agencies and check there aren’t any surprises. Or perhaps your credit utilisation or debt to income ratio is too high. But lenders don’t see the ‘credit scores’ that the consumer sees. If you were hard checked at AIP stage I don’t think NatWest hard check again, so this doesn’t sound quite right. 

thanks so much for the above - first time ive ever used a forum
Hard search was on 18th. today was soft search with the follow up application. I did look at both Equifax and Experian. Experian is a good score (940 i think - I know they don't use this but just for ref) even with the hard search on 18th. 
Equifax however was fair into good on Friday when the Mortgage in principal was accepted. but then the hard search has been added and the score down to poor!. no other changes in past week at all except that. checked both agencies to be sure. all green except search has jumped to red because of NatWest.

So I have 2 scores completely different on 2 systems with the exact same information. 

I have seen the submittal response in the online system which doesn't let the broker submit my documents as it says rejected due to credit score. 
yes my credit utlilisation on my credit card is high.. like 90 percent and I appreciate this brings my score down.. BUT that is the same as it was on 18th last Friday as I say so shoudn't now be the factor causing change. 

My broker called the NatWest area manager for mortgages and she also said it makes little sense if accepted for mortgage in principal but that that cant assess if computer rejects.... so im left worse off than I was before through their odd system. 

It will be down to your credit utilisation, and that will affect your credit profile and how they view you. A DIP doesn’t guarantee acceptance at application level unfortunately. The numbers you see on credit reports online mean nothing, actually they are quite unhelpful. My Experian is 999, Transunion 700 and my Equifax 500 and that’s the only one that dropped, even though the hard check from NatWest was on Transunion. So ignore the scores and work on bringing your utilisation down. Credit agencies don’t always update each month either so your balances may show higher than what you declared. But 90% utilisation is viewed badly by most lenders - your broker should have talked through that with you. 

joa02ds

defo seems utilisation is hte factor given all else is good. no missed payents - no ccjs etc... issue how is that the broker/natwest hard search has put me in a wose position than i already was!

Cscott139

joa02ds said:

defo seems utilisation is hte factor given all else is good. no missed payents - no ccjs etc... issue how is that the broker/natwest hard search has put me in a wose position than i already was!

I wouldn't worry about having a credit check and it adversely affecting your score. Other lenders wont say no because of this, there will be other factors that will affect their decisions. NatWest are terrible to deal with at the moment anyway so you may have dodged a bullet. I am sure your broker will be able to come up with an alternative for you.