Virgin money underwriters declined my application due to my partners Eu Pre settled status

Julz94

Hi, Just had a call today from the underwriters to notify me they cant proceed with application due to my wife not having indefinite leave to remain. she has the pre settled status under the EU settlement scheme.  she has no restrictions on work, has a UK bank account, Credit card, can access nhs and claim benifits if she wanted to etc. . now im assuming this has left a hard print on my credit history and might effect me trying to obtain a mortgage somewhere else.  I think they have made a mistake as to refuse it on that does not sound reasonable ? 

Any advice on their policy and whether it is normal and moving forward do i go with a broker or still shop around looking to go direct. 
Thank you 

katkatmachine

How long has your wife been here in the UK? I was also (actually still am) in my pre-settled status when we applied but we still managed to get a mortgage. I’ve been here only around 2.5 years when we submitted the mortgage application. Maybe you could wait a little longer and try again. Or maybe try other banks. 

Julz94

katkatmachine said:

How long has your wife been here in the UK? I was also (actually still am) in my pre-settled status when we applied but we still managed to get a mortgage. I’ve been here only around 2.5 years when we submitted the mortgage application. Maybe you could wait a little longer and try again. Or maybe try other banks. 

She's been living here since 2016. I am british citizen to . this coming June she can apply for settled status. I am only asking to borrow 50% too. 
Who did you obtain a mortgage with ? did you use a broker ? 

katkatmachine

Julz94 said:

katkatmachine said:

How long has your wife been here in the UK? I was also (actually still am) in my pre-settled status when we applied but we still managed to get a mortgage. I’ve been here only around 2.5 years when we submitted the mortgage application. Maybe you could wait a little longer and try again. Or maybe try other banks. 

She's been living here since 2016. I am british citizen to . this coming June she can apply for settled status. I am only asking to borrow 50% too. 
Who did you obtain a mortgage with ? did you use a broker ? 

Yes, we used a mortgage broker. We are with Halifax with an LTV of 85%. 

MovingForwards

Which one is she:

EEA Nationals

Virgin Money does not differentiate between a British National and a European Economic Area (EEA) National in our lending policy i.e. in all cases Virgin Money requires a minimum of three years UK addresses.

Due to EEA and or EU agreements Nationals of the following countries will be treated as EEA Nationals for Mortgage purposes:

Iceland

Liechtenstein

Norway

Switzerland

Non EEA Nationals

The customer(s) must have unrestricted rights to live and work in the UK.

Requirements:

Passport or National Identity Card

Two items of ID confirming residence in the UK

Must have evidence of 3 Years consecutive UK addresses

K_S

@julz94 Sorry, It's not clear from your post. Is she an EU/EEA passport holder with pre-settled status or a non-EU passport holder with pre-settled status obtained as the spouse of an EU citizen? 
I'm only asking because you mention ILR.

Generally speaking, lenders are still updating their systems and training with respect to requirements for EU nationals post Brexit, so it can be a bit confusing.

On the plus side, from the limited info in your post, you shouldn't have any issues meeting eligibility requirements for most mainstream lenders and the one hard-search is very very unlikely to cause any lasting harm to your mortgage chances. I would recommend using a broker just so that all this can be run past the lender in advance at DIP stage.

Julz94

K_S said:

@julz94 Sorry, It's not clear from your post. Is she an EU/EEA passport holder with pre-settled status or a non-EU passport holder with pre-settled status obtained as the spouse of an EU citizen? 
I'm only asking because you mention ILR.

Generally speaking, lenders are still updating their systems and training with respect to requirements for EU nationals post Brexit, so it can be a bit confusing.

On the plus side, from the limited info in your post, you shouldn't have any issues meeting eligibility requirements for most mainstream lenders and the one hard-search is very very unlikely to cause any lasting harm to your mortgage chances. I would recommend using a broker just so that all this can be run past the lender in advance at DIP stage.

She is a  non-EU passport holder with pre-settled status obtained as the spouse of an EU citizen.  In my opinion it should not matter as they have the same rights as someone holding an EU passport.  ( Well they should have the same rights under EU Law)  
I have spoken to nationwide and santander and they have told me it is not an issue regarding her status.  Got an appointment over the phone with a broker. i have already contacted santander direct
Not sure what do now at this stage. 

Julz94

K_S said:

@julz94 Sorry, It's not clear from your post. Is she an EU/EEA passport holder with pre-settled status or a non-EU passport holder with pre-settled status obtained as the spouse of an EU citizen? 
I'm only asking because you mention ILR.

Generally speaking, lenders are still updating their systems and training with respect to requirements for EU nationals post Brexit, so it can be a bit confusing.

On the plus side, from the limited info in your post, you shouldn't have any issues meeting eligibility requirements for most mainstream lenders and the one hard-search is very very unlikely to cause any lasting harm to your mortgage chances. I would recommend using a broker just so that all this can be run past the lender in advance at DIP stage.

Would you be able to check nationwide lending criteria , as i am not allowed to post links as of yet. The way i understand it, she should be ok. 

Lastly would you be able to recommend a broker?

K_S

@julz94 Ok that explains it.
As you probably know by now, there are mainstream lenders who will consider so it's nothing to worry about, especially at 50% LTV. Your broker will place you with the right lender, good luck!

Julz94

K_S said:

@julz94 Ok that explains it.
As you probably know by now, there are mainstream lenders who will consider so it's nothing to worry about, especially at 50% LTV. Your broker will place you with the right lender, good luck!

Do you suggest I stick with going with broker or try nationwide direct today? 

K_S

Julz94 said:

K_S said:

@julz94 Ok that explains it.
As you probably know by now, there are mainstream lenders who will consider so it's nothing to worry about, especially at 50% LTV. Your broker will place you with the right lender, good luck!

Do you suggest I stick with going with broker or try nationwide direct today? 

@julz94 If you were my client, I personally would be very unlikely to place your case until I'd actually talked to a lender and told them that one applicant is a non-EU national with pre-settled status to confirm that it fits criteria. This is a new combo. Just last week I was struggling at DIP for a Norwegian applicant who the lender insisted needed an ILR, even though they did not eventually.

Until recently, if you were a non-EU national in the UK, you were either on a visa or in ILR, and lenders have clear published criteria in this case.

I know nothing about your case so can't really tell you what to do one way or the other. If it's very urgent, my recommendation would be to speak to a broker over the weekend (there are plenty that take client appointments) and take it from there.

If you are going direct, I would strongly recommend that you pick the advised route where you get to speak to a Nationwide advisor so you can explain the situation clearly and avoid an unnecessary decline.

I would definitely recommend going through a broker, good luck.