Loan application affected credit score help me urgently !!!!

wolvesbruza

Could anyone help me. I have just had my mortgage offer accepted which is pleasing. i have a 10k deposit to put down but need 16k for a 90% mortgage. now the 6k differenc i was going to generate from having a unsecured loan.... still with me!! Now i had up until 2 days ago a maximum credit score.. my loan application was turned down yesterday and has since knowcked my score down by 150 points.... i dont have credit cards dont have any loans. The loan i had i paid off 3 years ago have previously owed my own house i dont make credit applications often as i save and by or pay on my debit card... I am baffled as to why it got rejected as i am very low risk. But more to the point really annoyed that i have now a crappy credit score which i have been punished for no reason as i have never had 'debt' or all payments made on time..... could someone advise me please on ways i can get this back up to what it was as. If i don't get the unsecured loan i need i will have to sacrefice the house i have saved long and hard for. Im very confused angry at the moment and want to complain to someone. PLease help

crazyfj

can you appeal? did you ask for a reason?

Tassotti

To get a good credit rating, you need to actually have credit (and never miss a payment)

As you have a mortgage offer, then it shows you can get credit.

Go to a different lender for the 6K (or write a credit card cheque and transfer the balance to a 0% deal)

One refusal doesn't make you have a 'crappy credit score'

I have an immaculate credit score but still get turned down by Capital One for a lousy 10K...Strange but true.

~Beanie~

You shouldn't really be using a loan as deposit on a house anyway. You obviously haven't saved long or hard enough if you cant afford the deposit without borrowing it.

Maybe the lenders who turned you down were concerned about your ability to repay their loan along with a new mortgage?

Also, lenders don't tend to use the 'points' score that you can see, most have their own internal scoring system. Unfortunately you have no cause for complaint, lenders are under no obligation to lend you money even if you have an immaculate credit record and an income of £1m per year.

_Andy_

wolvesbruza wrote: »

If i don't get the unsecured loan i need i will have to sacrefice the house..

Why would you want to buy in a falling market with minimal deposit and risk negative equity?

...i have saved long and hard for.

Demonstrably you haven't saved enough, otherwise you wouldn't be thinking of getting a loan for a deposit.

Im very confused angry at the moment and want to complain to someone. PLease help

You have no valid complaint - no lender is obliged to lend you anything whatsoever.

crazyfj

I can mind when this place was helpful and not full of people talking down or putting people down.

As a previous poster has said try a different lender (your own bank?)

Is it a brand new build; the builder may offer a cash desposit if you query with them to help (many in my area offer £1000 to £5000 for a new home)

Good luck

spammylou

_Andy_ wrote: »

Why would you want to buy in a falling market with minimal deposit and risk negative equity?




Demonstrably you haven't saved enough, otherwise you wouldn't be thinking of getting a loan for a deposit.



You have no valid complaint - no lender is obliged to lend you anything whatsoever.

Why should she not want to buy in a falling market? You'd be a fool not to. What goes down must go up!!

~Beanie~

spammylou wrote: »

Why should she not want to buy in a falling market? You'd be a fool not to. What goes down must go up!!

I agree with that sentiment - surely buying now is a good idea, prices may go down a little more intially but eventually must go up!!

If you have found the house of your dreams and intend on staying there for many years to come then I would rather buy it now rather than wait hoping the price will drop further and potentially miss out if someone snaps it up before I do.

(I still think that the OP can't afford it though if they need to take out a loan for the deposit!!)

spammylou

~Beanie~ wrote: »

I agree with that sentiment - surely buying now is a good idea, prices may go down a little more intially but eventually must go up!!

If you have found the house of your dreams and intend on staying there for many years to come then I would rather buy it now rather than wait hoping the price will drop further and potentially miss out if someone snaps it up before I do.

(I still think that the OP can't afford it though if they need to take out a loan for the deposit!!)

Well, we are in a similar position. Can afford the mortgage and have a deposit but not quite enough, but can afford a loan as well. No-one in their right mind would overstretch themselves, well I wouldn't anyway lol! The problem is that most lenders now are looking at min 5% deposit but some insist on 10% and at this rate people will not save enough deposit until another year or so! Can lenders seriously afford to wait this long?

The other good thing is that with some of these Banks going bust, it will mean that only the strong survive, and clearly HBOS and Lehman were not looking after things too well. I hope the OP has success and gets the house of her dreams.

~Beanie~

I was lucky (in one way!) - I was made redundant and therefore had a 5% deposit (5 years ago). If the redundancy hadn't happened or if I had needed 10% deposit I would still be renting as there is seriously NO WAY that I could have paid rent/bills and save for a deposit as well. So I do understand where people are coming from when they can't afford a deposit.

bathgatebuyer

Can a knockback on a loan have such an impact as 150 points?! Wow - I knew it recorded applications, but not rejections. I know that when I settled a loan account, my credit score went up by about 100 points when that information was recorded. Pretty horrendous if settling a 5 year loan is wiped out by a rejection :eek:

Can I ask which credit reference agency you used? Or what it one of those, "Guesstimate" type websites?

Although I agree with a large part of what was said on here, I had the benefit of 102.5% mortgage when I bought my first flat 9 years ago. It was very different times back then though.