Declined mortgage due to partner with whom I have no financial association

RML5

Hello - brand newbie here looking for some advice.

A bit of the history... I currently have a fixed rate Nationwide mortgage which has 1 year remaining. I am looking to upsize and my mortgage advisor suggested porting my existing rate for the remainder of the term and taking a variable extension for the rest of the value (67% LTV overall, 33% deposit coming from sale equity), before consolidating and getting the best rate available at the end of the fixed term. Nationwide has been my sole account provider for current accounts, savings, credit card, loan, mortgage... EVERYTHING... for more than 20 years (since I got my first smart card account at age 10), so have my entire financial history at their disposal. Similarly, my credit score is excellent.

My partner's credit rating isn't particularly good - we were initially looking to buy the new property together, but it quickly became apparent that this wouldn't be an option and that it would be better for me to apply for the mortgage on my own, as affordability-wise it is manageable based on my salary alone. We have no financial association whatsoever - no joint bank accounts, no joint credit applications.

The solo decision in principle came through fine, yet the mortgage has now been declined as Nationwide have allegedly picked up on a declined decision in principle I applied for months ago with both of us on the mortgage, whilst investigating the options available. This was declined due to my partner's credit history. During the solo application, I disclosed that he would be living with me at the property, and because of this Nationwide are now saying that lending to me on a solo basis would be too risky.

This feels incredibly unfair and unjust. My understanding of decisions in principle are that they are soft searches that don't affect future credit rating. How can Nationwide take this and apply it to my solo mortgage application when the person in question has no bearing on my ability to pay the mortgage?

I am now in a position where Nationwide are refusing me any mortgage, meaning I'm unable to port at my existing rate (1.99%) and must pay an early repayment charge to move to another provider - assuming that their decline of my application hasn't completely destroyed my ability to borrow elsewhere. Moving to another provider would increase my mortgage repayments by c.£500p/m.

Is this reasonable? My mortgage advisor has already been fighting on my behalf with the senior underwriter and they are refusing to budge. I have raised a complaint with Nationwide but honestly don't expect anything to come of it, and would just appreciate some advice/thoughts.

MorningcoffeeIV

Yes, it's reasonable. You've not met their risk threshold.

And your application has in no way destroyed your ability to borrow elsewhere. 

dunstonh

This feels incredibly unfair and unjust. My understanding of decisions in principle are that they are soft searches that don't affect future credit rating. How can Nationwide take this and apply it to my solo mortgage application when the person in question has no bearing on my ability to pay the mortgage?

Correct. Soft searches to not affect your credit rating.  However, the lenders don't use your credit rating.  They use the available information.     Nationwide are looking at your overall scenario.  A reason by itself may not be enough to tip you over to rejection.   But a combination of reasons could be enough.  i.e. you could be relatively high risk to begin with, but just the right side for them to lend you the money.  However, this extra info could be just enough to swing it to rejection.

And it does have a bearing on your potential ability as you have an unreliable partner and you may be called upon to bail them out in the future or they could use your address for new credit that goes wrong.

assuming that their decline of my application hasn't completely destroyed my ability to borrow elsewhere. Moving to another provider would increase my mortgage repayments by c.£500p/m.

Their decline wont have any impact with another lender.

Is this reasonable? 

Yes, it is.   It's unfortunate but certainly not unreasonable or unfair.

kingstreet

RML5 said:

Hello - brand newbie here looking for some advice.

A bit of the history... I currently have a fixed rate Nationwide mortgage which has 1 year remaining. I am looking to upsize and my mortgage advisor suggested porting my existing rate for the remainder of the term and taking a variable extension for the rest of the value (67% LTV overall, 33% deposit coming from sale equity), before consolidating and getting the best rate available at the end of the fixed term. Nationwide has been my sole account provider for current accounts, savings, credit card, loan, mortgage... EVERYTHING... for more than 20 years (since I got my first smart card account at age 10), so have my entire financial history at their disposal. Similarly, my credit score is excellent.

My partner's credit rating isn't particularly good - we were initially looking to buy the new property together, but it quickly became apparent that this wouldn't be an option and that it would be better for me to apply for the mortgage on my own, as affordability-wise it is manageable based on my salary alone. We have no financial association whatsoever - no joint bank accounts, no joint credit applications.

The solo decision in principle came through fine, yet the mortgage has now been declined as Nationwide have allegedly picked up on a declined decision in principle I applied for months ago with both of us on the mortgage, whilst investigating the options available. This was declined due to my partner's credit history. During the solo application, I disclosed that he would be living with me at the property, and because of this Nationwide are now saying that lending to me on a solo basis would be too risky.

This feels incredibly unfair and unjust. My understanding of decisions in principle are that they are soft searches that don't affect future credit rating. How can Nationwide take this and apply it to my solo mortgage application when the person in question has no bearing on my ability to pay the mortgage?

I am now in a position where Nationwide are refusing me any mortgage, meaning I'm unable to port at my existing rate (1.99%) and must pay an early repayment charge to move to another provider - assuming that their decline of my application hasn't completely destroyed my ability to borrow elsewhere. Moving to another provider would increase my mortgage repayments by c.£500p/m.

Is this reasonable? My mortgage advisor has already been fighting on my behalf with the senior underwriter and they are refusing to budge. I have raised a complaint with Nationwide but honestly don't expect anything to come of it, and would just appreciate some advice/thoughts.

Nationwide criteria;-

"Any application that is initially made in joint names which results in a decline must not then be scored individually to try for an accept decision, even if either applicant in their own right has sufficient income to support the mortgage. Subsequent applications from either of the individuals may only be accepted if there is no longer any connection between the original applicants."

DullGreyGuy

By "partner" do you mean someone who you arent married/civil partnered to?
Is the new property going to be jointly owned?

RML5

kingstreet said:

RML5 said:

Hello - brand newbie here looking for some advice.

A bit of the history... I currently have a fixed rate Nationwide mortgage which has 1 year remaining. I am looking to upsize and my mortgage advisor suggested porting my existing rate for the remainder of the term and taking a variable extension for the rest of the value (67% LTV overall, 33% deposit coming from sale equity), before consolidating and getting the best rate available at the end of the fixed term. Nationwide has been my sole account provider for current accounts, savings, credit card, loan, mortgage... EVERYTHING... for more than 20 years (since I got my first smart card account at age 10), so have my entire financial history at their disposal. Similarly, my credit score is excellent.

My partner's credit rating isn't particularly good - we were initially looking to buy the new property together, but it quickly became apparent that this wouldn't be an option and that it would be better for me to apply for the mortgage on my own, as affordability-wise it is manageable based on my salary alone. We have no financial association whatsoever - no joint bank accounts, no joint credit applications.

The solo decision in principle came through fine, yet the mortgage has now been declined as Nationwide have allegedly picked up on a declined decision in principle I applied for months ago with both of us on the mortgage, whilst investigating the options available. This was declined due to my partner's credit history. During the solo application, I disclosed that he would be living with me at the property, and because of this Nationwide are now saying that lending to me on a solo basis would be too risky.

This feels incredibly unfair and unjust. My understanding of decisions in principle are that they are soft searches that don't affect future credit rating. How can Nationwide take this and apply it to my solo mortgage application when the person in question has no bearing on my ability to pay the mortgage?

I am now in a position where Nationwide are refusing me any mortgage, meaning I'm unable to port at my existing rate (1.99%) and must pay an early repayment charge to move to another provider - assuming that their decline of my application hasn't completely destroyed my ability to borrow elsewhere. Moving to another provider would increase my mortgage repayments by c.£500p/m.

Is this reasonable? My mortgage advisor has already been fighting on my behalf with the senior underwriter and they are refusing to budge. I have raised a complaint with Nationwide but honestly don't expect anything to come of it, and would just appreciate some advice/thoughts.

Nationwide criteria;-

"Any application that is initially made in joint names which results in a decline must not then be scored individually to try for an accept decision, even if either applicant in their own right has sufficient income to support the mortgage. Subsequent applications from either of the individuals may only be accepted if there is no longer any connection between the original applicants."

Is this the case even when no joint application was made?

RML5

DullGreyGuy said:

By "partner" do you mean someone who you arent married/civil partnered to?
Is the new property going to be jointly owned?

Correct - boyfriend for want of a better word. The mortgage would be solely in my name and I was getting legal advice on whether to go down a joint tenancy route for protection for both of us.

kingstreet

RML5 said:

kingstreet said:

RML5 said:

Hello - brand newbie here looking for some advice.

A bit of the history... I currently have a fixed rate Nationwide mortgage which has 1 year remaining. I am looking to upsize and my mortgage advisor suggested porting my existing rate for the remainder of the term and taking a variable extension for the rest of the value (67% LTV overall, 33% deposit coming from sale equity), before consolidating and getting the best rate available at the end of the fixed term. Nationwide has been my sole account provider for current accounts, savings, credit card, loan, mortgage... EVERYTHING... for more than 20 years (since I got my first smart card account at age 10), so have my entire financial history at their disposal. Similarly, my credit score is excellent.

My partner's credit rating isn't particularly good - we were initially looking to buy the new property together, but it quickly became apparent that this wouldn't be an option and that it would be better for me to apply for the mortgage on my own, as affordability-wise it is manageable based on my salary alone. We have no financial association whatsoever - no joint bank accounts, no joint credit applications.

The solo decision in principle came through fine, yet the mortgage has now been declined as Nationwide have allegedly picked up on a declined decision in principle I applied for months ago with both of us on the mortgage, whilst investigating the options available. This was declined due to my partner's credit history. During the solo application, I disclosed that he would be living with me at the property, and because of this Nationwide are now saying that lending to me on a solo basis would be too risky.

This feels incredibly unfair and unjust. My understanding of decisions in principle are that they are soft searches that don't affect future credit rating. How can Nationwide take this and apply it to my solo mortgage application when the person in question has no bearing on my ability to pay the mortgage?

I am now in a position where Nationwide are refusing me any mortgage, meaning I'm unable to port at my existing rate (1.99%) and must pay an early repayment charge to move to another provider - assuming that their decline of my application hasn't completely destroyed my ability to borrow elsewhere. Moving to another provider would increase my mortgage repayments by c.£500p/m.

Is this reasonable? My mortgage advisor has already been fighting on my behalf with the senior underwriter and they are refusing to budge. I have raised a complaint with Nationwide but honestly don't expect anything to come of it, and would just appreciate some advice/thoughts.

Nationwide criteria;-

"Any application that is initially made in joint names which results in a decline must not then be scored individually to try for an accept decision, even if either applicant in their own right has sufficient income to support the mortgage. Subsequent applications from either of the individuals may only be accepted if there is no longer any connection between the original applicants."

Is this the case even when no joint application was made?

A decision in principle is the early part of an application so I would interpret this to mean both as you can't submit an application without first securing a decision in principle pass.

penners324

Your partner's credit history needs improving significantly by the sounds of it

kingstreet

You may have also created an association by submitting the joint decision in principle. I would submit disassociation forms to the CRAs just in case...

DullGreyGuy

RML5 said:

DullGreyGuy said:

By "partner" do you mean someone who you arent married/civil partnered to?
Is the new property going to be jointly owned?

Correct - boyfriend for want of a better word. The mortgage would be solely in my name and I was getting legal advice on whether to go down a joint tenancy route for protection for both of us.

Others here are much more expert on mortgages than i but when we applied I'd assumed it'd be just in my name as my wife doesnt work but our mortgage advisor said that many lenders dont like joint ownership with single named mortgage