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Original poster

DH refused mortgage based on 'associated third party' - is this me?

26 replies

JustStirItUna · 22/12/2014 19:28

Bit of background - I have shite financial history (DMP, a few visits to the bank of Wonga) and we were refused a joint mortgage based on that. Recently made an offer on a shared ownership property because it meant DH could get the mortgage on his own. AIP given, and property allocated to us by the Housing Association. After seven long weeks, his application was declined to day based on "back ground information regarding an associated third party"

Is this me? Has my credit rating STILL affected us?

Application was with Nationwide and our broker is now going to go out to other lenders to see if anyone else will give us one, but I can only assume we'll get the same response if it IS me.

Can anyone shed any light on this?

OP posts:
NoArmaniNoPunani · 22/12/2014 19:30

Have you both checked your credit reports? Try noddle for a free report

Original poster
JustStirItUna · 22/12/2014 19:35

Yep. His is fine (967) mine is ok (747). He has no defaults, about £48 on a CC and no loans, decent job (£28k) been there 2 years, on the electoral role and no dependents.

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Original poster
JustStirItUna · 22/12/2014 19:37

They came back last week saying that they needed to include his student loan in his debts, and were proposing to lend us £1,200 less than we needed (which is fine). As it had gotten to this point, we thought we were on the home strait!

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NoArmaniNoPunani · 22/12/2014 21:12

We were refused by nationwide but were accepted by another company. Hopefully the same will happen to you. Your credit rating is much better than mine!

Enlli · 23/12/2014 02:39

If they don't think that you can easily pay the repayments back then I think they refuse too.

MovingOnUpMovingOnOut · 23/12/2014 02:44

Do you have debts, defaults or CCJs?

Eminybob · 23/12/2014 03:38

I do know that if nationwide decline a joint application then they will not process a sole one just to get around it.

It sounds like in your case the two applications weren't made on the same property, but they may have realised what you were trying to do.

Original poster
JustStirItUna · 23/12/2014 21:35

I have a small amount of debt (about £750) and whilst I don't have any defaults or CCJ's, I did have a Debt Management Plan when I got into a lot of debt years ago. That is all paid off and cleared and it'll be 2 years this Feb since it was completed.

Eminybob - your reply worries me. Is there visibility between lenders of your previous mortgage applications? The first one (joint one where we got turned down) was only a 'soft' search to gauge whether we'd be accepted and that was with the Halifax. Second one (different broker, different house) was with Nationwide and we've been told today that there are still a number of lenders we can try, Santander being touted as our next option.

In terms of affordability, we went through the checks with our broker before we made the offer and were passed with flying colours.

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MovingOnUpMovingOnOut · 23/12/2014 22:19

A debt management plan less than two years ago? Frankly I'm amazed that your broker has made any application before at least 2 years is up, probably more like 3 years from paying it off.

Each credit search and application will show on your credit file and that does have an impact on future lending decisions.

What does your broker say?

Original poster
JustStirItUna · 24/12/2014 10:02

Movingonup - the soft search was done jointly to see if we could get accepted, when we weren't, we decided to do the mortgage application singularly just in my DH's name. Different house, different mortgage lender.

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thatstoast · 24/12/2014 12:40

It might not be impossible to get a mortgage but lenders like things to be simple and straight forward. The ideal is a married couple, joint mortgage. They'll be suspicious of someone applying in sole name when the unnamed party has adverse credit information.

Original poster
JustStirItUna · 31/12/2014 10:57

Thanks for all the replies, it's really helpful. I spoke to our mortgage broker and also to an independent financial advisor. Both have suggested our next move should be approaching Santander who are much more accommodating to non straight forward applications and are also very fast.

This does beg the question as to why our broker used Nationwide in the first place. Not as independent as they first seemed...

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NoArmaniNoPunani · 31/12/2014 12:35

Are you paying your broker or are they being paid by the lender?

Original poster
JustStirItUna · 01/01/2015 15:37

We will be paying them, we haven't yet as that comes at the end of the service they provide. Think it's somewhere in the region of £800.

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Ebayaholic · 01/01/2015 15:50

Apart from anything else, it is completely unacceptable to decline after seven weeks for something that was apparent at the time of application- definitely make an official complaint about this.

uggmum · 01/01/2015 15:55

It is probably your info that is affecting him. If you had a dmp this will affect you for up to 6 years.

He can disassociate from you financially. If you don't have any joint finances he can apply to credit reference agencies to disassociate from you. Your credit files will then be completely separate and your info will not affect him.

You are only disassociating financially. You can still live together etc. it won't affect you in any other way.

thatstoast · 01/01/2015 20:38

You can disassociate from him but bear in mind that if you have the same surname lenders will still be able to view your credit information when credit checking him so you might still have the same answer. Also it's so easily undone if you ever need to apply jointly for something in the future, it might not be worth the hassle.

Original poster
JustStirItUna · 01/01/2015 21:38

Thanks Ugg, unfortunately we have a joint account so I'm guessing that's where the association is. All my credit history is in my maiden name, not sure what affect that has on our association with each other as I don't have any credit/accounts/history with my new surname, other than the joint account.

i'm just hoping, beyond hope, that Santander offer us a mortgage.

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Original poster
JustStirItUna · 08/01/2015 20:06

Update!! (for anyone who's interested. Anyone?? Anyone??)

Moved the mortgage to Santander on Monday, today we were today the valuation had been instructed and then EA told us it has been booked for tomorrow.

This is good yes??

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nooyearnooname · 08/01/2015 20:11

We are in a very similar situation...my credit rating is fine, DH's is not, so mortgage has to be in my name only. Mortgage agreed by first direct no problem, norwich & peterborough wouldn't touch us with a bargepole! So I do think it is very lender specific, and I reckon if they've instructed the valuation its all looking good. Fingers crossed for you!

Original poster
JustStirItUna · 08/01/2015 20:15

Thank you noo - it's shit isn't it. I just felt really responsible as the one that was letting us down. Started seriously looking into the practicalities of financial disassociation and now this, out of the blue!

I can only assume the valuation will be fine as it's 50% Housing Association so one of the only stipulations is that it has to be sold at current market value (for example, our house is £10k less than any other house on that street).

Hope everything goes well for you guys, will be keeping all my digits crossed as I know how stressful it can be :-(

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HaveToWearHeels · 08/01/2015 20:40

Nationwide are notoriously picky, your broker should have known that as it is a well known fact. Other lenders may well lend but the more credit checks you have the worse it will become. We are with Santander, they are less fussy Grin

CrapBag · 08/01/2015 22:05

Nationwide are shocking.

We were with them for 5 years, we even paid our shared ownership mortgage off early. When we knew we would be moving I phoned them to ask how much we could borrow and they told us, it was a decent amount.

Then the rule change about mortgage approvals came in but we though as we had been with them for 5 years with no problems and we're applying for half of what they said we could borrow, it wouldn't affect us.

How wrong we were. They were only willing to lend us such a low amount even though we had a substantial deposit.

We told them no and went to Halifax, through London and Country, and got approved with no problems for nearly double what Nationwide said they would lend.

Original poster
JustStirItUna · 29/01/2015 21:44

Just a quick update for anyone who is interested or going through a similar situation:

Moved applications from Nationwide to Santander on Monday January 5th. By the Thursday, they had proceeded to valuation. Valuation was done on the Friday. By the following Thursday (15th) we had the mortgage offer. We exchanged the following Friday (23rd) and we complete tomorrow!!!!!

So there is hope, even if you're initially turned down Smile Wine

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IssyStark · 29/01/2015 21:51

Hurrah!

Good luck for the move Wine