Mortgage

dont_use_vistaprint

My daughter had a mortgage offer from NatWest that expires in April. 

Just put in for funds as completion is happening in next few days as the value of the property changed (she negotiated 3K off) it went to updated application and has been refused as she fails the credit check due to changes since  the offer was made. 

She is borrowing 60 for property that was 160, now 157. She changed jobs 2 months ago and has be temporarily living with me since the mortgage offer was made but still on electoral register at her last house and not notified lender of any changes so unsure why this has happened , other than LTV shift maybe ?

But all they will offer is a new application / survey etc and she will likely not pass down to new job and was hoping to complete this week 

Any advice ?

chrmc

Lenders can change their criteria at any point for new applications. If I where in her shoes and if the original offer still stands to forget about the price reduction £3k in the grand scheme of things is nothing. This would mean she can still complete on schedule and not risk losing the property

dont_use_vistaprint

It’s too late , automated email from the bank say the application is now rejected and needs a brand new application. Tried to speak to the bank but they won’t discuss , it’s final 

ACG

Lenders have access to HMRC. 
Lenders have access to credit reports. 

Has she moved ANYTHING to your address?  Car insurance? Bank statements? etc. 

If you have not told them about the changes they may have declined her because they were not made aware as there is a legal obligation to do so. 

dont_use_vistaprint

So she checked all this when taking the mortgage , told them she was thinking about changing job and would be moving in with me after he tenancy ended. They said it’s all fine as long as she gets the offer done now  it’s then valid for six months based on the criteria at the time and doesn’t matter if things change after as long as it’s not over 6 months and a new Appication would then be needed as it would expire  . So they have lied 

dont_use_vistaprint

The irony is she changed jobs from zero hours to permanent salaried job with higher pay for less hours. she could have done this before the application but waited as Nat west said length of service and actual income on zero hours contract  with evidence of overtime was fine to borrow 60K at the LTV and change of job would impact the decision. She also moved in with me to save an extra £1000 a month towards moving costs so is in a much better financial position now than before. 

The change in price seems to triggered it going back to underwriter when funds were requested by the solicitor they then updated the application and made a different decision :-( 

we’ve tried phoning but they are so unhelpful even refusing to refund the fees she paid 

dont_use_vistaprint

ACG said:

Lenders have access to HMRC. 
Lenders have access to credit reports. 

Has she moved ANYTHING to your address?  Car insurance? Bank statements? etc. 

If you have not told them about the changes they may have declined her because they were not made aware as there is a legal obligation to do so. 

So as a mortgage advisor what do you advise ?

ACG

dont_use_vistaprint said:

So she checked all this when taking the mortgage , told them she was thinking about changing job and would be moving in with me after he tenancy ended. They said it’s all fine as long as she gets the offer done now  it’s then valid for six months based on the criteria at the time and doesn’t matter if things change after as long as it’s not over 6 months and a new Appication would then be needed as it would expire  . So they have lied 

Not necessarily. The mortgage offer may have been valid (I am taking you word of what natwest said and natwest' word for it) if there were no changes. The changes resulted in a new offer needing to be issued... Just a thought, but I could be wrong. 

ACG

dont_use_vistaprint said:

ACG said:

Lenders have access to HMRC. 
Lenders have access to credit reports. 

Has she moved ANYTHING to your address?  Car insurance? Bank statements? etc. 

If you have not told them about the changes they may have declined her because they were not made aware as there is a legal obligation to do so. 

So as a mortgage advisor what do you advise ?

dont_use_vistaprint said:

ACG said:

Lenders have access to HMRC. 
Lenders have access to credit reports. 

Has she moved ANYTHING to your address?  Car insurance? Bank statements? etc. 

If you have not told them about the changes they may have declined her because they were not made aware as there is a legal obligation to do so. 

So as a mortgage advisor what do you advise ?

I am not really sure what to advise and without all of the facts I am reluctant to. 

I am assuming you did not use a broker? If you did, they need to go and resolve it for you. As a broker I would be on the phone to my account manager kicking up a bit of a fuss. As an individual I suppose all you can do is speak to natwest and put in an appeal - ie her job is now more secure and the mortgage is slightly smaller so actually the risk to the lender is smaller. 

But I suppose you also need to be looking for a plan B. 

dont_use_vistaprint

Yes, we need plan B. Seeing a broker later today , Also I can raise 50 via Barclays premier but it’s at 5.5 over 5 years so £981 per month which is too high plus still leaves us 10k short, so looks like cannot complete this weekend as planned 

Not bothering with Nat west again they tried to resolve yesterday but advised that reapplying with them will likely  do further damage to credit score. They now said it was  a decision to pass to underwriter as had a price change as it was almost six months old so nearing expiration , this triggered update which triggered credit score check which failed.

Both the underwriter who reviewed it on price change and the manager can not determine why it failed after the price update it simply doesn’t say any reason and that it failed means it’s logged as a rejection now which has further impacted her credit score.

ACG

Thats not true. The outcome of your application does not get recorded on your credit report (neither does acceptance). It might affect your internal score with Natwest/RBS but it wont affect other lenders.