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  • FIRST POST
    • kay159
    • By kay159 16th Mar 17, 5:53 PM
    • 43Posts
    • 4Thanks
    kay159
    Mortgage Broker and damaged credit file
    • #1
    • 16th Mar 17, 5:53 PM
    Mortgage Broker and damaged credit file 16th Mar 17 at 5:53 PM
    Can anyone offer any advise on the following
    My daughter and her partner have recently applied for their first mortgage
    He is working, she is disabled - they wanted a low amount on a help to buy property
    The broker had all of their details and ran affordability checks which stated they could borrow £30k over what was needed
    Both looked at credit files. Her partners is squeaky clean, my daughter had a default from 2013 for £116 which was settled in full. Neither has any credit and both are up to date with bills on their rented property
    The main issue other than the default was the fact that when they moved despite sending the forms off for electoral roll and subsequently someone coming to the door last year to chase (which should in hindsight have rung alarm bells) they were not added to the electoral roll. They have corrected this with the council and will be on the April update but this wont feed through to the credit agencies for a few weeks
    The broker was fully aware. Before he ran the offer in principal it both the default and the electoral roll situations were discussed at length. The broker told her he had spoken to the bank and it was not an issue
    Then he ran the search with the bank. It came back declined and their credit scores were reduced by half.
    When my daughter questioned the reason for the decline she was told it was due to the credit report and went on to deny knowledge of the issues with the electoral roll, had never spoken to the bank as it transpires and just run through the banks online system
    Now the situation is that there scores show they have both made too many applications for credit. The broker advised that having a credit card may help but the score seems to negate this especially until the electoral roll shows correctly and personally I would not now trust a word he says
    Having read a few posts on here it appears that the electoral roll was the major problem and the application should not have been submitted until it was corrected on the credit reference agencies files
    Has anyone any experience of something similar, how long do the credit searches stay on file, how soon after the credit file is updated for the electoral roll entries could they realistically reapply, would the default mean an instant decline and would they be better going to the actual branch to discuss in person
    Also would a credit card with a small balance really help if they opened soon and spent a small amount and paid it off each month or is this something that would make no difference
    Sorry this is quite lengthy but my daughter and her partner are distraught and are worried that in running the application when they were not on the electoral roll this means they will be left in rented property indefinitely. They are trying to save a larger deposit but the rental rates in our area are around 1/3rd higher than the cost of buying would have been so the sooner they can move onto the proprty ladder the better
    If it helps the bank was Nat West and a Help to Buy Property - the broker advised 95% LTV as an alternative are very hard to achieve currently so what LTV is realistic
    Thanks
Page 1
    • ACG
    • By ACG 16th Mar 17, 6:25 PM
    • 15,032 Posts
    • 7,599 Thanks
    ACG
    • #2
    • 16th Mar 17, 6:25 PM
    • #2
    • 16th Mar 17, 6:25 PM
    I do not think the electoral roll is a deal breaker, it sounds like a combination of everything which is frustrating as it makes it easier if there is a specific issue to overcome.

    There are lenders who do not credit score, so it might be worth looking at those lenders. I would not rule out getting a Mortgage now based on what you have said, but we only have limited information to go off.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 16th Mar 17, 9:50 PM
    • 31,553 Posts
    • 16,851 Thanks
    kingstreet
    • #3
    • 16th Mar 17, 9:50 PM
    • #3
    • 16th Mar 17, 9:50 PM
    Please, please, please do not get hung up on these numbers peddled by the Credit Reference Agencies as "credit scores" as they have no significance whatsoever in securing a mortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Thrugelmir
    • By Thrugelmir 16th Mar 17, 10:26 PM
    • 54,276 Posts
    • 47,061 Thanks
    Thrugelmir
    • #4
    • 16th Mar 17, 10:26 PM
    • #4
    • 16th Mar 17, 10:26 PM
    Have they registered on the electoral roll previously? Continuity counts.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • ap1985
    • By ap1985 17th Mar 17, 3:53 PM
    • 323 Posts
    • 128 Thanks
    ap1985
    • #5
    • 17th Mar 17, 3:53 PM
    • #5
    • 17th Mar 17, 3:53 PM
    To me it sounds like you need to take the advise of another mortgage broker. I would highly recommend a second opinion but the decline initially could have been due to many factors not just the factor of the electoral roll registration.
    Finally going to be a homeowner
    • minimike2
    • By minimike2 17th Mar 17, 6:23 PM
    • 1,886 Posts
    • 1,391 Thanks
    minimike2
    • #6
    • 17th Mar 17, 6:23 PM
    • #6
    • 17th Mar 17, 6:23 PM
    "Their credit score reduced by half" - No, it didn't. No one has a "credit score". As Kingstreet says, the numbers are insignificant and lenders do not see / use them in credit assessment. What they do use is the data held on the credit records.

    They simply haven't met the banks own internal credit scoring. Sometimes cases look on paper like they should be fine but end up failing "credit score" with the lender. Since it is usually only a handful of people in any lender who know what that scoring criteria is, it is often impossible to get an answer as to the rationale, although the usual good practice of good financial management apply.
    I am a mortgage industry professional. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • Nasqueron
    • By Nasqueron 17th Mar 17, 10:00 PM
    • 4,179 Posts
    • 2,322 Thanks
    Nasqueron
    • #7
    • 17th Mar 17, 10:00 PM
    • #7
    • 17th Mar 17, 10:00 PM
    Even putting aside the fact credit score numbers might be meaningless (I personally don't buy into this argument as I feel it makes people more aware of their financial health and the sorts of things lenders look for, and keeps people focused, even if the number generated on the report is not used anywhere) - a single application should not cut your score in half, unless it is extremely low anyway (judging only on the information given, I don't see why it would be THAT low).
    Originally posted by AFF8879
    People who still have active bankruptcies can get the maximum 999 from Experian. Scores ARE worthless, the data on the record is all that is important.

    The credit agency doesn't lend you money do they? However, they earn money from selling "improvement" services to help raise the score that they themselves generate
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