NatWest confusion

[Deleted User]

Hi,

NatWest’s lending criteria for intermediaries says for adverse credit;

“We will not consider applications from individuals who have been subject to a bankruptcy order or an Individual Voluntary Arrangement in the last six years.

 

We can consider applications where one or more applicant(s) has a history of unsecured loan arrears. Subject to credit checks and bank account conduct carried out by an underwriter.”

But when you go to do an AIP online, it says;

“Have you…

Ever defaulted on a mortgage

Ever organised a debt repayment plan with creditors 

Declared bankrupt or had a ccj in the last 6 years?”

Is the ‘ever organised debt repayment plan with creditors’ just to see if you have any old debts that you are still paying that are not on your credit report? As otherwise I struggle to see how it’s stated bankrupt or ccj within 6 years but debt repayment ever… unless I’m missing something. 

I only ask as i defaulted on a credit card over 6 years ago no longer on credit report and has been paid off anyway some years ago. 

JMA74

These questions are to help build a profile that might include information they cant see on initial credit check.   Depending on the answers it may then refer meaning they will take the case but cant confirm if it will be accepted until the details are known at application stage.  

They will 100% decline a case where the previous debt was with any company connected to the Natwest group though so watch out for that.

Also to an extent they want to see how people answer these questions. Answer truthfully and get an accept then they will 99% of the time go through and do the mortgage, answer dishonestly and get an accept then they will reverse that decision once the information comes out

ACG

I am not telling you how to complete the application, you should check with natwest (I would), but from what you have said I would answer "no" to all of the questions. 

Q1 and 3 are not really applicable. 
Q2 I think would be no unless you set up a payment plan. It then becomes a little messier, but to answer that as a yes would put you in a worse position than if you had just left the default and not paid anything. That seems wrong. 

But check with natwest, then you know you are not lying or doing anything wrong. 

[Deleted User]

JMA74 said:

These questions are to help build a profile that might include information they cant see on initial credit check.   Depending on the answers it may then refer meaning they will take the case but cant confirm if it will be accepted until the details are known at application stage.  

They will 100% decline a case where the previous debt was with any company connected to the Natwest group though so watch out for that.

Also to an extent they want to see how people answer these questions. Answer truthfully and get an accept then they will 99% of the time go through and do the mortgage, answer dishonestly and get an accept then they will reverse that decision once the information comes out

ACG said:

I am not telling you how to complete the application, you should check with natwest (I would), but from what you have said I would answer "no" to all of the questions. 

Q1 and 3 are not really applicable. 
Q2 I think would be no unless you set up a payment plan. It then becomes a little messier, but to answer that as a yes would put you in a worse position than if you had just left the default and not paid anything. That seems wrong. 

But check with natwest, then you know you are not lying or doing anything wrong. 

Thank you both that’s very helpful!

Thankfully the default was with a Barclays account that dropped off my credit report 3 months ago. 

I did have a payment plan with them for a token amount and then settled the account 2 years after the default. So was just unsure whether saying ‘yes’ to this would just open a can of worms that they wouldn’t know about anyway as it no longer shows on any statutory credit reports. But then I also didn’t want to be dishonest incase that bit me when it might not have needed to. 

I did speak to a friend of the family who is a mortgage broker and he looked at my credit reports and said there would be no issues and would place this at any highestreet lender barring Barclays - mainly as I have no other debt no adverse or any kind and the amount I aim to borrow is only a fraction of what I would technically be able to borrow.  I think I’ll give NatWest a call to make sure as it’s a strange one