Worried about Natwest Mortgage Application

carl2303

Hi all,

Myself and my partner have just had an offer accepted on a house for £180k and are looking to submit the mortgage application soon. We have a decision in principle with Natwest and I was wondering whether anyone has experience with this process? What documents do they ask for? Has anyone been declined after DIP approval? My partner has a near perfect credit score but I'm extremely worried my poor credit history (TransUnion - 565) will negatively affect the application. The main things I'm scared about is (1) I had several payday loans between 2017-2020 and (2) I have a few closed credit cards with one/two missed payment marks (3 years ago). All of the payday loans were settled on time but the volume of the loan usage worries me.  

My financial situation has completely changed since then, all I have is a personal (debt consolidation) loan and one credit card (total payments below). Our combined income is 65k and we have a deposit of 14% (£25.9k) and our current outgoings are £776.81.

Do you think we will get declined for a full mortgage because of my poor credit history? I'm very anxious about the process!

ACG

Everything you mention is within criteria. 
Pay day loans have well over 12 months clear so you can show you are not in a cycle with them. 

The DIP with natwest is normally pretty reliable. I used to use natwest a lot (to the point where I joked I should just put their sign above my door). I think I only had 1 decline after the DIP has been agreed. 

Dont worry about your score, its worthless. I think you will be fine. 

What they ask for depends on the situation - have a look at natwest packaging guidelines. Typically though it would be 3 months bank statements and payslips. 

carl2303

ACG said:

Everything you mention is within criteria. 
Pay day loans have well over 12 months clear so you can show you are not in a cycle with them. 

The DIP with natwest is normally pretty reliable. I used to use natwest a lot (to the point where I joked I should just put their sign above my door). I think I only had 1 decline after the DIP has been agreed. 

Dont worry about your score, its worthless. I think you will be fine. 

What they ask for depends on the situation - have a look at natwest packaging guidelines. Typically though it would be 3 months bank statements and payslips. 

Thank you for your reply, I really appreciate it! You're correct, it looks like it's just the 3-month statements from the main account, payslips, and ID/address. 

I did have one other query, if you don't mind helping? Myself and my partner regularly send money to a joint savings account and I was wondering whether I need to disclose this? The money will not be used for the deposit as we both have Lifetime ISAs

ACG

You wont need to disclose it. It will get picked up. 
They might ask for the statements for that account, they might not. It will be down to the underwriter. I suppose a lot depends on whether that account is with natwest/rbs and/or whether it is clear it is a savings account and not a bank account. Their concern could be that it is a commitment or you have other commitments coming from that account that have not been declared. 

Either way its not going to be a problem. 

carl2303

ACG said:

You wont need to disclose it. It will get picked up. 
They might ask for the statements for that account, they might not. It will be down to the underwriter. I suppose a lot depends on whether that account is with natwest/rbs and/or whether it is clear it is a savings account and not a bank account. Their concern could be that it is a commitment or you have other commitments coming from that account that have not been declared. 

Either way its not going to be a problem. 

Thank you for clarifying this too! The savings account is with Nationwide and is attached to a current account I have with them. Frustratingly, I'm unable to close the current account without closing the savings account too. 

All of my credit commitments (loan, credit card, phone etc.) are all documented on my main bank account (Monzo) statements so I would be surprised if the Nationwide statements were requested?

Clemenntyne

 carl2303 said:

Hi all,

Myself and my partner have just had an offer accepted on a house for £180k and are looking to submit the mortgage application soon. We have a decision in principle with Natwest and I was wondering whether anyone has experience with this process? What documents do they ask for? Has anyone been declined after DIP approval? My partner has a near perfect credit score but I'm extremely worried my poor credit history (TransUnion - 565) will negatively affect the application. The main things I'm scared about is (1) I had several payday loans between 2017-2020 and (2) I have a few closed credit cards with one/two missed payment marks (3 years ago). All of the payday loans were settled on time but the volume of the loan usage worries me.  

My financial situation has completely changed since then, all I have is a personal (debt consolidation) loan and one credit card (total payments below). Our combined income is 65k and we have a deposit of 14% (£25.9k) and our current outgoings are £776.81.

Do you think we will get declined for a full mortgage because of my poor credit history? I'm very anxious about the process!

hiya, newbie here and really grateful for this thread in particular. I am in a very similar position to you (history of payday loans, poor credit etc.) whereas my partners credit past is perfect. 

I have worked for the past year to clear all debt an work on increasing my credit score - have credit card debt of £4484.85 and current credit score is 795 (Equifax, TransUnion) 830 (Experian) 

We have passed the affordability check and have a DIP with Natwest - I am not sleeping because I am so worried they will decline at the next stage. We have a 60% deposit to put down on the property and are not requesting the full amount it was proposed we could have but whilst everyone says ‘it’ll be fine’ I can’t shake the feeling that it won’t. 

Just wondering what the outcome of your meeting was and if you got the mortgage? Our next appointment is Thursday. 

Look forward to hearing from you! 

jimjames

Clemenntyne said:

 carl2303 said:

Hi all,

Myself and my partner have just had an offer accepted on a house for £180k and are looking to submit the mortgage application soon. We have a decision in principle with Natwest and I was wondering whether anyone has experience with this process? What documents do they ask for? Has anyone been declined after DIP approval? My partner has a near perfect credit score but I'm extremely worried my poor credit history (TransUnion - 565) will negatively affect the application. The main things I'm scared about is (1) I had several payday loans between 2017-2020 and (2) I have a few closed credit cards with one/two missed payment marks (3 years ago). All of the payday loans were settled on time but the volume of the loan usage worries me.  

My financial situation has completely changed since then, all I have is a personal (debt consolidation) loan and one credit card (total payments below). Our combined income is 65k and we have a deposit of 14% (£25.9k) and our current outgoings are £776.81.

Do you think we will get declined for a full mortgage because of my poor credit history? I'm very anxious about the process!

I have worked for the past year to clear all debt an work on increasing my credit score - have credit card debt of £4484.85 and current credit score is 795 (Equifax, TransUnion) 830 (Experian)  We have a 60% deposit to put down on the property and are not requesting the full amount it was proposed we could have but whilst everyone says ‘it’ll be fine’ I can’t shake the feeling that it won’t. 

Curious why you've got £4484 credit card debt and 60% deposit unless it's at 0%? Surely if paying interest it's worth clearing such a small amount and then credit will improve too?

carl2303

Clemenntyne said:

 carl2303 said:

Hi all,

Myself and my partner have just had an offer accepted on a house for £180k and are looking to submit the mortgage application soon. We have a decision in principle with Natwest and I was wondering whether anyone has experience with this process? What documents do they ask for? Has anyone been declined after DIP approval? My partner has a near perfect credit score but I'm extremely worried my poor credit history (TransUnion - 565) will negatively affect the application. The main things I'm scared about is (1) I had several payday loans between 2017-2020 and (2) I have a few closed credit cards with one/two missed payment marks (3 years ago). All of the payday loans were settled on time but the volume of the loan usage worries me.  

My financial situation has completely changed since then, all I have is a personal (debt consolidation) loan and one credit card (total payments below). Our combined income is 65k and we have a deposit of 14% (£25.9k) and our current outgoings are £776.81.

Do you think we will get declined for a full mortgage because of my poor credit history? I'm very anxious about the process!

hiya, newbie here and really grateful for this thread in particular. I am in a very similar position to you (history of payday loans, poor credit etc.) whereas my partners credit past is perfect. 

I have worked for the past year to clear all debt an work on increasing my credit score - have credit card debt of £4484.85 and current credit score is 795 (Equifax, TransUnion) 830 (Experian) 

We have passed the affordability check and have a DIP with Natwest - I am not sleeping because I am so worried they will decline at the next stage. We have a 60% deposit to put down on the property and are not requesting the full amount it was proposed we could have but whilst everyone says ‘it’ll be fine’ I can’t shake the feeling that it won’t. 

Just wondering what the outcome of your meeting was and if you got the mortgage? Our next appointment is Thursday. 

Look forward to hearing from you! 

I wouldn't worry. I submitted the application 26th July 12:30 and have just received an offer now (27th July - 13:10pm). I cannot believe the process took just over a day, unbelievable!