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    • Gottobeabetterway1975
    • By Gottobeabetterway1975 17th Jul 17, 9:32 PM
    • 5Posts
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    Gottobeabetterway1975
    Lender stalling on remortgage due to credit score
    • #1
    • 17th Jul 17, 9:32 PM
    Lender stalling on remortgage due to credit score 17th Jul 17 at 9:32 PM
    We were offered a good deal remortgaging with our existing lender, but they are now reviewing it due to credit rating being 'poor' with Equifax. This is apparently as high credit cards (hence the remortgage application), yet with Experian credit rating with exact same data is 'excellent'.
    We only took out the credit card debt as we needed to renovate our property to a certain standard as a condition of the mortgage (who ironically wouldn't lend us the extra cash at the time)
    Taking the remortgage would save us a whopping £2.5k a month in interest and release enough funds to finish our home and thus be in a position to sell at a healthy profit and consider a down size / mortgage free life which is why we took it on). It would also free up income to make over payments and or save to pay off early. We would be at about 75% Ltv if the additional borrowing is accepted. We are self employed but have 3 years+ books, have never missed a payment or had poor credit in the past.
    We tried a broker (SPF) but they couldn't help and suggested citizens advice! We surely don't need to go down this route, we just want to reduce our sky high short term interest payments.
    Appreciate we are deemed as 'high risk' despite high income, equity, never been declined credit previously or ever missed payments etc. We seem to be a credit card companies dream customer and they are doing very well out of us. Be good to know if this is a possibility with specialist lenders or if we just drop it and work on a plan B?
    Also do guarantor mortgages / secured lenders exist?
    Thanks in advance.
Page 1
    • zx81
    • By zx81 17th Jul 17, 9:33 PM
    • 12,714 Posts
    • 12,958 Thanks
    zx81
    • #2
    • 17th Jul 17, 9:33 PM
    • #2
    • 17th Jul 17, 9:33 PM
    As per your other thread - it's really really really not your credit score that is the issue...
    • Thrugelmir
    • By Thrugelmir 17th Jul 17, 10:41 PM
    • 54,866 Posts
    • 47,737 Thanks
    Thrugelmir
    • #3
    • 17th Jul 17, 10:41 PM
    • #3
    • 17th Jul 17, 10:41 PM
    We were offered a good deal remortgaging with our existing lender, but they are now reviewing it due to credit rating being 'poor' with Equifax.
    Originally posted by Gottobeabetterway1975
    The lender will obtain data from the CRA's that will form part of their internal scoring of you both as applicants. Whatever rating you are viewing is irrelevant.
    “ “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
    • hunt85
    • By hunt85 18th Jul 17, 9:21 AM
    • 326 Posts
    • 161 Thanks
    hunt85
    • #4
    • 18th Jul 17, 9:21 AM
    • #4
    • 18th Jul 17, 9:21 AM
    Its not your score its the fact you're self employed with high credit card debt. High risk because self employed = no sick pay, no guarenteed income etc etc and credit card debt = yes you may be borrowing to pay it off BUT they have to account for the fact you can run the debt back up and they can't stop you i.e make you close down your credit cards.
    • ACG
    • By ACG 18th Jul 17, 9:25 AM
    • 15,243 Posts
    • 7,707 Thanks
    ACG
    • #5
    • 18th Jul 17, 9:25 AM
    • #5
    • 18th Jul 17, 9:25 AM
    Who is the lender?
    Are you just switching products? No extra money needed and remaining with the same lender?

    Also - £2,500 in INTEREST a month? Your current rate must be very very high or your Mortgage must be massive.
    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.
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