Broker changed information - Mortgage now declined

buttercupb · 9 August 2018 at 9:42PM

Hello,

My husband and I recently had an offer of mortgage from Natwest but queried both the deposit amount and interest rate on it with our broker as we wondered why it was different to what we had initially thought was being applied for. He stated he would be able to get us closer to what we wanted and we were happy to let him try. At no point were we told that Natwest had requested a higher deposit or that the interest rate was all they were willing to offer. Subsequently the offer was declined due to us not hitting the credit score second time around.
There is an issue with my husband's credit card, which we are now getting rectified in order for our broker to appeal (they are sending a letter confirming the account is in order).

Airing my frustration with the broker, I asked why this had happened and he said that it was because Natwest had set a specific amount for the deposit and we had been informed about it but had still decided to try for a different amount, which then resulted in the decline. I've checked all correspondence and can find nothing that states Natwest would only except a certain amount for the deposit and can only assume that he thought it had been sent to us but it wasn't.

I had a meeting with Natwest who confirmed that the reason for the decline was the change of the deposit and resubmission of application. It appears that we have not been given accurate advice that has resulted in losing our mortgage offer. When I queried the offer with the broker when received I asked if it was due to our credit scores, thinking that they may not have been high enough for the preferential rate but at no point was this discussed as an option, just that "we'll get you to where you need to be".

Is there anything we can do regarding a decision being made on our behalf that we had no control over? Also, I have now passed all soft checks to apply for the mortgage by myself through Natwest and wondered if anyone had any advice as to whether this would be a good idea or not? I have explained to them that i'm concerned that my score has decreased slightly due to the number of hard searches on my report (all by Natwest) and they said it shouldn't be a problem. But, i'm scared of getting declined and losing the house if the appeal with the broker fails.

ACG · 9 August 2018 at 9:48PM

Natwest will not change products available depending on your score.
They may limit the maximum LTV available through your score.

You should be able to go back to the original offer I would have thought?

dunstonh · 9 August 2018 at 10:07PM

I had a meeting with Natwest who confirmed that the reason for the decline was the change of the deposit and resubmission of application.

How did you have a meeting with Natwest? They dont normally deal with borrowers directly when there is a broker involved. Mainly as branch criteria is different to that of brokers and it would risk conflicting information.

It appears that we have not been given accurate advice that has resulted in losing our mortgage offer.

I doubt that is the case. The mortgage may not have qualified for that deal but it did for an earlier one then its likely that reverting to the earlier one will be fine.

When I queried the offer with the broker when received I asked if it was due to our credit scores, thinking that they may not have been high enough for the preferential rate but at no point was this discussed as an option, just that "we'll get you to where you need to be".

There is no credit score. That is a myth put about by credit reference agencies to sell you their services and the services of other companies to make money out of you. You either pass criteria or you don't. Sometimes criteria will be different on different deals.

If you have a negative issue (which may be the credit card) then its possible that it could be rejected at one LTV but not an issue at another. Lots of things tug and push in the decision making. Push a bit in one area and it could be enough to decline. Something a bit more positive in another area can make it an acceptance.

But, i'm scared of getting declined and losing the house if the appeal with the broker fails.

Tell the broker that you are scared and get them to explain what they are doing and why. You are worrying. But the broker may be doing something routine. Communication is key.

buttercupb · 9 August 2018 at 10:17PM

I met with Natwest at an appointment to discuss savings and see if I could apply as a sole applicant directly through them in the case of the appeal failing as my broker will not now apply just under my name.

We have been told by the broker the initial offer has been declined and we cannot simply revert back to it. Apparently this is due to our credit scores not being high enough (his words not mine).

It's all just infuriating as we would have accepted the initial offer having all facts in hand. He says there could be a glimmer of hope but that rests in us increasing the credit score.

buttercupb · 9 August 2018 at 10:19PM

Apparently not.

[Deleted User] · 9 August 2018 at 10:21PM

buttercupb wrote: »

He says there could be a glimmer of hope but that rests in us increasing the credit score.

That's simply not an option.

You need to meet their lending criteria.

MovingForwards · 9 August 2018 at 10:22PM

Is the broker am independent one or part of an estate agents?

buttercupb · 9 August 2018 at 10:32PM

He's independent.

The additional credit check when he changed the info is what caused the decline. Apparently we cannot revert to the original offer due to this additional check. The check flagged an issue on my husband's card, which has now been rectified and this is what is being sent over to appeal.

Is this likely to make any difference? We're really upset and don't know what's happening on our behalf. It's rather confusing.

dunstonh · 10 August 2018 at 12:41AM

buttercupb wrote: »

He's independent.

The additional credit check when he changed the info is what caused the decline. Apparently we cannot revert to the original offer due to this additional check. The check flagged an issue on my husband's card, which has now been rectified and this is what is being sent over to appeal.

Is this likely to make any difference? We're really upset and don't know what's happening on our behalf. It's rather confusing.

If something was missed of an earlier check and found by Natwest on a second check then it doesnt really matter whether you use the branch or a broker. They know about that issue now.

Can you explain what this card issue is as that will give us idea if its the sort of thing that a mortgage lender gets concerned about?

LRmortgage · 10 August 2018 at 6:01AM

Why doesn!!!8217;t your broker go to another lender?
If, for whatever reason you!!!8217;re not meeting Nat West criteria now, find a lender whose criteria you will meet.

buttercupb · 10 August 2018 at 8:45AM

dunstonh wrote: »

Can you explain what this card issue is as that will give us idea if its the sort of thing that a mortgage lender gets concerned about?

There were arrears one of which had a red flag prior to the first offer (he was making payment every month but didn't realise it wasn't enough), however with the second check there were two red flags. This shouldn't have happened as the account was brought up to date as soon as he realised and the second red flag is now being removed. This is obviously an issue and our broker said we would only be able to go with a specialist lender hence why I've now considered applying by myself as I'm the main income earner and have a fine credit score.

Broker changed information - Mortgage now declined

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