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Declined for mortgage & links to credit rating

We applied for a mortgage online last night. When the application was completed the site ran some credit searches and came back to us with "referred to underwriter" which I thought may just be a precaution on the banks part based on the current economic climate.

When I checked the outcome this afternoon, it said that we had been declined and gave a brief and poorly worded description as to the reason for this decision. I phoned the bank to clarify the description and the lady I spoke to established that I had completed the form incorrectly (I have reviewed the form that I submitted and to be honest there was no way that I could have ever completed the form the way that they wanted due to the poor narrative of the requested fields).

I have now been informed of the correct way to complete the form but I am now concerned that the original declined application may have affected my credit rating (which I would consider to be good - and is confirmed by the mse credit checker) and seriously affect the success of a second application. I asked the lady whether the initial application would affect my credit rating and she replied that it would leave a "footprint" but was not able to elaborate.

I have applied to get my details from Equifax but I am not sure whether I would be able to get my details changed without the agreement of the mortgage company who are more likely to claim that I am incompetent of completing a basic form than admit that their website is unclear.

Am I worrying over nothing? The last thing that I want to do is resubmit the application and that to be declined also and in turn making the situation worse.

Any thoughts would be greatly appreciated.

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    One credit search is nothing to worry about. You'll be fine.
  • jawster
    jawster Posts: 22 Forumite
    The 'footprint' she's referring to will just show up as a credit search on your file - it doesn't elaborate whether or not it was accepted or declined.

    Unless you've been doing lots of applications for credit recently (hence credit searches) then this element at least should not have a significant impact on whether or not they accept you.
  • Thats a huge relief. Thank you.
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