AIP given by Lloyds (C&G) but application declined - please help?

stanstan20

Hi

Please can somebody give me some advice?

I went to the mortgage advisor at Lloyds TSB last week to find out if I could get a C&G mortgage at 65% LTV. The loan was for £90,000 on a property value of £140,000 - we are first time buyers. She went through all our details: income, dependents, debts etc, then said she was doing a credit check, and finally said that we had been approved subject to proof of income etc. She also said that she could lend us up to £100,000.

We have found a house very cheap and need to move fast and show the vendor that we are proceeding quickly so decided to use the estate agents' recommended broker to make the application (still for C&G mortgage). We did this over the phone this evening with him giving exactly the same info as before for the Agreement In Principle, only for the application to be declined due to credit score!??

Does anybody know how this could be? Or what I should do?

The reason I did the AIP in the first place was because we had been late with a couple of credit card repayments recently and I wasn't sure about whether we could get a mortgage at all. So when Lloyds said the credit score was fine it got our hopes up and made me more confident - now feeling crushed - we will lose the house if we can't get this sorted soon.

Many thanks for any advice you can give us.

unite79

Probably due to having two searches done, thus lowering your credit score - armed with the original AIP - you should be able to get branch to over-ride computer.

stanstan20

unite79 wrote: »

Probably due to having two searches done, thus lowering your credit score - armed with the original AIP - you should be able to get branch to over-ride computer.

Do you really think it is something as easy and simple as that? How ridiculous - as you can see by the time I posted my original question I have been up all night worrying.
Fingers crossed - as soon as the clock hits 9am I'm calling Lloyds.
Many thanks

kieran1979

From your post... "because we had been late with a couple of credit card repayments recently"

Maybe that's why you were declined the mortgage?

It's the age old thing isn't it. I don't know your situation. But looking at it black and white, as a lender would do, why would I lend you money if you've missed credit card payments? In the market right now a less than squeaky clean credit report doesn't make it easy.

Good luck anyway.

feisty1

You appear to have 2 posts running, see my post on yr other one........

stanstan20

kieran1979 wrote: »

From your post... "because we had been late with a couple of credit card repayments recently"

Maybe that's why you were declined the mortgage?

Yes, but surely they would never have given me the Agreement in Principle based on the credit score if this was the case?
I don't understand why one day they say yes and the next say no.

Does anyone have any idea who I could go to for a mortgage - we have been late with a few payments but we have never missed any outright and I have always paid more than the minimum payment. We are totally up to date there is nothing outstanding.

Thanks again

feisty1

It could be the credit file hadn't been updated when the 1st score was done therefore the missed payments didn't show.

feisty1

stanstan20 wrote: »

kieran1979 wrote: »

From your post...


"because we had been late with a couple of credit card repayments recently" Maybe that's why you were declined the mortgage? YES


Didn't the mortgage adviser who received yr decline not offer you any further help? If not, you need to find another who is independent and more helpful

dunstonh

An agreement in principle is worth nothing legally and a lender can change their mind the next day if they want to.

The problem is that they are a bascially an assumption that if everything you have said so far is correct and there is nothing that comes up that could be classed as a negative then if your application was processed this minute under current criteria then we would lend you the money.

Credit score information on late payments can take some weeks to appear.

To be honest, its probably done you a favour. If you are having money problems and unable to make your payments on time, then it isnt really a good indicator when you are trying to get a mortgage.

Met_Bobby

Could it be that the second score was affected by the first one having been done by Lloyds? Can you go back to Lloyds?

stanstan20

Hi
I have been advised by another broker to go straight back to Lloyds and contest it. My experian Credit score is 936 good- which is higher than average with just one late payment which is actually paid in full.
Aaargghhh
I've got an estate agent coming at 11am to photograph our house to put it up for sale - the place is a skip.
Thank you to all of you for your help