Mortgage declined by underwriters

[ClarkL]

So we had a mortgage in principal with Natwest, put in an offer on a house. Went to see Natwest once offer was accepted, went through all of their afordability checks - they said it was all fine, we have enough income to pass the affordability checks so went ahead with the credit check and application. It came back accepted. We paid the money for a house survey there and then.
Today I get a call from the estate agents to tell me the survey has been cancelled and did I know why. I didnt.
Call Natwest, our mortgage person is on annual leave so went through to the main centre, They told me it's declined by underwriters but can't tell me why. Simply that someone will be in touch over the next couple of days.
I am furious that we only know due to the estate agents calling but also that I'm expected to sit and wait for someone to call me and I have no idea if we can appeal, if they simply need more information and right now it's risking our sale because of course the estate agents know!
Has anyone had any experience of a mortgage being declined by underwriters and it later being accepted?
I have a mortgage broker coming over tonight, but could 2 mortgage application/credit checks cause us issues with our credit score?

[FunSponge82]

I know that you can go so far with a mortgage application without it affecting your credit rating but I dont know how far you can go before it shows your your credit file.

That's really shitty of natwest. TBH if that were me I wouldn't be waiting for them to call me I would be badgering the hell out of them to find out why. You cant tell me that no-one at Natwest cant contact the underwriters on your behalf to find out whats going on. Crap. It sounds like no-one wants to take on the extra workload! You need to know the reason before you apply to someone else as the same thing might happen again. There is obviously something that has come to light and they have backtracked with their offer. They might just need further documentation?

I would explain everything to the mortgage broker and see what they say and how you should proceed. If you do happen to have another check done by a different mortgage provider you could always put a notice of correction on your credit file explaining the reason for the extra check

Good luck x

[JoJoSM2]

That's rubbish... Especially the way the lender has handled it... You could have a look at your own credit score and see what information comes up to make sure there isn't anything wrong with it?

[scaredofthecity]

We were declined by the underwriters with nationwide. I made a complaint as we gave them everything they asked for and we're declined on something we had questioned at the application stage. In the end we did get some monitary compensation. I appealed but got nowhere.
We then went through a broker and it went through fine. It was horrendously stressful though and I was worried we'd lose the house.
But just as one has said no it doesn't mean no from them all. Stick in there!
And as for credit score we were told one refusal was OK but a second could be difficult. Definately go through a broker and it should be ok.

[ClarkL]

My credit score is 911, my husbands is 999.
We have an 18% deposit, but said we could put down 25% - ideally we wanted the extra to make improvements which they noted on our application.
Both my husband and I are self-employed (we have 2 separate companies, not sure if it helps but spreads the risk). I have 2 years worth of accounts, my husband 9 years - although they only asked to see 2 years worth.
I am gutted - im angry, I dont trust myself to phone natwest yet to push for more information as I will cry or shout at the moment.

[PlayingGrownUp]

It is possible that they haven't refused the mortgage on you but are refusing to mortgage the house without further information. Our mortgage was refused on one house because the company found there was a history of issues in the street and as a result it was considered too high a risk

[ClarkL]

Playing I really have no idea - but i'm unsure how they'll know much as the survey was cancelled, no-one has been to the house.
We live in the village we are hoping to buy in, we currently rent. For the area it is one of the more exclusive villages so I can't imagine the issue being anything to do with crime, the only time we've seen the police was when they were lost and asking for directions!!

[JoJoSM2]

Is it about the deposit? Did you apply for a mortgage with 18% deposit or 25% Could their products have changed or they thought it was too little deposit or something? I know you're beyond angry at the minute, but I'd push for contact to get more details about what the issues are.

[scaredofthecity]

I'd imagine it is something to do with you both being self employed. We were refused as I'd been on mat leave the year before and couldn't verify my additional income enough to satisfy them as my p60 for that year didn't show my full earnings. Funny that as I was on leave?!
They have really strict affordability criteria but each bank does it slightly differently. For our now mortgage provider 6 months of payslips and an explanation was enough but nationwide wanted alot more.
We did appeal and applied elsewhere whilst the appeal was still going through in order to keep our options open.
Definately complain if your not happy with the way it's been handled. Like I said we got a fairly substantial amount of compensation for the inconvenience caused.

[ClarkL]

I am much calmer now - did a few urgent work tasks to help clear my head.
I'm about to make a coffee then phone them and ask for an explanation, as well as voice my concern as to how this is being handled.
Our application was based on an 18% deposit, which was accepted. They told us all mortgages go to the underwriters to check over so they would have seen the notes then that the deposit could be increased.

[GingerIvy]

Perhaps they want the 25% deposit, but are handling it in a rubbish way?

[ClarkL]

ok, I called.
This person said it was down to affordability and someone will call me back. I explained I don't have time, because my estate agents know there is a problem I need to get another mortgage in place asap so we don't loose the house. so I needed to speak to someone with more answers today, but that I also needed to make a formal complaint due to their handling of this and putting me in a difficult position with the estate agents.
Suddenly someone from the underwriting team was free! She will be out a meeting in 5-10 minutes and will call me straight away. That was 5 minutes ago stares at phone
I then said that was lovely but I still needed to speak with their complaints team, apparently the underwriter will also handle my complaint. Hummmm
Remaining calm, splitting this into 2 issues. 1) Reason for decline so I can advice our mortgage broker tonight as it may impact and 2) Their handling of the matter. Fingers crossed

[FunSponge82]

Good luck!
You have sufficient grounds for a complaint. You should not have found out about this from the vendors EA.

[purpleladybird]

How did you get on Clark? If I were you I would leave the complaint for now. Sure, highlight how disappointed you are and that if this isn't resolved you will be looking to make a formal complaint, but the more time you spend complaining now the less time you can spend resolving the problem. And if you tell them you're complaining regardless what incentive is there for them to put it right? I do agree that they've handled it badly by the way.

[ClarkL]

I still haven't had a call back, this is a very long 5-10 minutes :/

I will phone again at half 4, a full hour after I spoke to them and also hopefully before they all go home for the day...

Purplelady I do agree they need a chance to rectify this, they don't have to approve the mortgage, I fully understand that and don't expect them to agree it simply to avoid a complaint. I do however really need them to tell me what the issue is that has caused them to decline in a timely manner as they have caused this urgency with the estate agents and right now they aren't even doing that.

[crayfish]

I was declined by nationwide on affordability because I was still repaying a student loan, which they knew about when I applied and said was fine. They did offer for me to pay the loan off (I didn't owe that much) and they would review again - so something like this might be an option?

My broker advised to try Halifax as they don't care about student loans anyway and bingo, I got the mortgage.

It was very stressful though and I thought I would lose the house, but there is usually a solution.

[ClarkL]

They called! I now know what the issue is and it's to do with my husbands business accounts, it sounds like an actual error in the accounts but no option to get them double checked by accountant
Also doesn't bode well when seeing the mortgage broker tonight because it's now too late to speak to the accountant :(

As for the complaint, not being handled by the person I spoke to, if im not happy I need to go online and put in a complaint

[CotswoldStrife]

How strange, affordability implies it is down to something in your finances but it seems a strange time to raise it - did you take out a loan for the deposit or anything that would only just show up?

I hope they come up with some answers for you today.

[CotswoldStrife]

Ah, cross posted - frustrating that you can't check tonight, can you put the mortgage adviser off for a day to give you enough time to speak to the accountant?

[ClarkL]

The issue is more to do with the estate agents putting the house back on the market. I've got today to resolve...
The deposit is coming from the sale of my husband's house, it's been rented for years as its just 1 bedroom and near his parents we've never lived there together.

[purpleladybird]

Now you know what it is you can explain to the mortgage adviser and find out what they think you shouod do. They deal with mortgage companies for a living.

Is there an option to resubmit to Natwest?

What interest was there in the house? If it goes back on the market is it likely to resell quickly?

[ClarkL]

I have just spoken to the mortgage advisor who said he isn't concerned and it sounds like Natwest are looking for reasons to decline....so he's still coming tonight.
The house has had 2 sales fall through and they are desperate for a quick sale, which is why when we put an offer in well below the asking price they accepted on account of our other sale is in final stages and our mortgage was in place. So it's partly linked to our offer that they would pull out and relist

[purpleladybird]

My advice (for what it's worth) is to speak to the mortgage advisor tonight and ask their advice. They may be able to recommend a similar mortgage product which they know to be more flexible for those self employed or who are known to turn things around quickly.

Assuming you can apply for a new mortgage I'd then contact the estate agent tomorrow and let them know That you have submitted a new application with a company known to progress quickly. Give them a copy of this. Highlight to them that sticking with you is still likely to be quicker in the long run than relisting particularly because three failed sales can hardly look good. Look organised and as if you're doing all you can (which you are). Good luck!

[JoJoSM2]

What a palaver... I hope you manage to sort it out quickly. Good luck!

[Cucumber5]

Fingers crossed

[ClarkL]

I think you all wishing us luck worked!
Nothing is confirmed yet, however mortgage broker was lovely. He thinks we were too honest handing over our full books and should have just given them our SA302's which is all that is usually asked for. By providing full books they've picked up on something that in his opinion isn't an issue but also that he hasn't yet met a mortgage underwriter who is fleunt in company book keeping - who knows, then end result is - He has found about 30 mortgage types all with mainstream lenders that are actually better than what Natwest offered us, so he is applying for a mortgage for us which is fixed for 5 years and 1% less than what Natwest offered, so it works out about £70 a month cheaper. Absolutely bonkers.
He has also assured me he will speak to the estate agents on our behalf to reassure them there are no issues, FINALLY, he actually set up the first mortgage for the house we're buying, he cannot believe the price we go it for!! We know the history of the house well so aren't overly concerned we know the first sale fell through due to the chain collapsing but he's seen the survey report and knows there were no issues been picked up on the all-singing all-dancing reports.
Let's just keep all fingers and toes crossed he comes back with good news.
Thank you for all your positive messages yesterday. I didn't think I was wrong to be annoyed with Natwest's handling, but as I was equally gutted about the mortgage it's always hard to gauge if I am overreacting. You all kept me sane