Remortgage application with previous defaulted lender

simon_or

BeingDebtFreeStartsHere said:

ACG said:

I think you need to find another lender.
I think (again, its been a little while since I have had it crop up) it gets flagged at DIP stage so would be before the hard footprint but dont hold me to that. 

A one of hard footprint is not going to be a deal breaker, or at least shouldnt be. 

Is it worth finding another broker too or should I see what they come back with as an alternative first?

Has it been declined? If not, don't do anything yet, wait to see what happens to the application first!

Drop an email to your broker asking if the full application has been submitted. If they're one of the smaller independent ones, they might respond over the weekend or at least first thing tomorrow.

BeingDebtFreeStartsHere

simon_or said:

Has it been declined? If not, don't do anything yet, wait to see what happens to the application first!

Drop an email to your broker asking if the full application has been submitted. If they're one of the smaller independent ones, they might respond over the weekend or at least first thing tomorrow.

I have not been informed that it has been declined yet. The application was submitted on Friday afternoon. Not sure if the broker would have got a response later on Friday but as yet I have had no update. I will email the broker and hopefully find out one way or another tomorrow.

If it is straight decline due to the default, is it likely that this will come back pretty much as soon as they receive the application?
Not sure how long Natwest are taking to process applications at the mo?

kingstreet

The only time this happened to us it was about two weeks in before the internal marker was picked up. It isn't an automatic decline at DIP nor at full app submission.

Growingold

BeingDebtFreeStartsHere said:

Advice welcome,

We are using a broker and they have come back that Natwest are offering the best deal for us for a 5 year fixed mortgage.

I have informed the broker that we previously defaulted on a loan with Natwest in 2015. This was sold on to PRA in 2019 and dropped off our credit file in 2021.

The broker assured me that as the default is over 6 years old it won't be an issue when it comes to our Natwest application so this has now been submitted.

I just wondered what anyone's thoughts on this are, as it is making me anxious as to whether this is going to be a wasted application.........

If it does come back as a rejection if you had to pay a fee to the mortgage broker to submit the application I would ask for their fee back and argue the case as you had already forewarned them you'd had a default with NatWest in 2015 only dropping off your file in 2021.
But fingers crossed it's not a rejection based on your history with them.

summerb64

I hope it all goes okay for you and gets approved by NatWest. I would just avoid a previous lender that you defaulted with like the plague though; just isn’t worse the stress!!

ACG

kingstreet said:

The only time this happened to us it was about two weeks in before the internal marker was picked up. It isn't an automatic decline at DIP nor at full app submission.

The ones I have had declined used to pop up with an error message. I thought it was automatic. 

BeingDebtFreeStartsHere

ACG said:

kingstreet said:

The only time this happened to us it was about two weeks in before the internal marker was picked up. It isn't an automatic decline at DIP nor at full app submission.

The ones I have had declined used to pop up with an error message. I thought it was automatic. 

If it is a decline I really hope it is automatic or at DIP stage as it would be horrible to think the application was going ok then to be declined 2 weeks later............

ACG

Ive only ever had that happen. When it happened and I asked the customers they then said something along the lines of "oh I might have had a default with rbs/natwest/mint 10 years ago"... 

But frustrating as our factfind asks if you have ever had any defaults etc, but what can you do. You just go to plan B. It sounds like kingstreet has had it happen where it gets picked up down the line. 

kingstreet

Yeah. It was a good few years ago.

More recently, 31 May, we submitted a case to NatWest with heavy unsecured. We were astonished when it passed DIP and full app and then we got an email two days later to say;-

Application update

The Mortgage application for the above client has been assessed and unfortunately we're unable to lend based on the information that you've supplied. The reason for this is Level of unsecured indebtedness too high.

BeingDebtFreeStartsHere

So the broker has informed me this morning that Natwest have 'accepted' our application and it has been passed to the underwriters.  I have had to upload payslips and benefit docs. Still not feeling very confident though after reading kingstreet's posts..........