Mortgage Declined...

CrossyX

A bit of a saga really but was after some advice please.

I seen a house i liked that needed some work doing to it so i made a offer which got accpeted. I applied for a mortgage on my own using a mortgage broker. It was a 90% LTV on 115k. I earn just over 25k a year and live at home with the parents im 27 and in no debt .When going through the credit check it failed which was a suprise because i have never paid anything late. I have had things on credit before standard things like mobiles phones, car insurance and a brand new Ford Focus i bought about 3 years ago which is fully paid up and a couple of smaller Direct debits. The broker asked me to get a credit report from Experian which i did, after looking through it there was a late/non payment outstanding from Orange. To cut a long story short it was a error on there part and after days of arguing to get it removed quicker they removed it yesterday. I checked the credit report online today and it was clear. So I rang the broker and explained and he went through the automated check again and it came back refused.

The broker could not understand with my credit history why i would get refused on the amount i was asking for. He did say that getting refused the first time played a part in getting refused the second (both times are with Cheltenham & Gloucester). One of my concerns is why did he not go through the underwriters the second time? rather than try and go through the automated approach as we could have explained why the first time was declined to the underwriters.

So as it stands i have no idea where to go from here, i am worried if i apply somewhere else after getting refused 2 times already within a week that it will have a serious affect on my credit, but applying again is the only way i am going to get a chance to get the house i want.

Any help or ideas where i go from here would be appreciated.

Thanks.

unite79

Have you asked your broker to appeal the decision with C+G - Given the error, which you could try to get Orange to put in writing - this may help!

herbiesjp

C&G have changed their scoring systems and criteria a few times over the past year - so I have had clients accepted one week with an agreement in principel and then declined a few weeks later whena full application submitted

C&G were not very helpful, and the cases were placed with other lenders.

It would have been wise for the broker to discuss the BDM first to find the best course of action if trying to put the case back to them - it would be good to find out the exact reason for the decline and look to appeal if possible.

If all else fails, you may want to try a different lender, and a different broker.

CrossyX

Thanks for the advice.

Orange have actually send a letter out which should be here this week, (would this make a difference now anyways that it has been removed from the credit report?)

I have just got off the phone to the broker (before i read the replies). He has appealed against it and is going to contact them again later this afternoon. C+G have sent a automated fax saying we could have been declined for any number of reasons.

Do they actually have to give a reason or can they just say it is one of the reasons on the fax they sent?

Would applying to a different lender so quickly after getting 2 declines affect my chances of getting declined for the mortgage with the new lender?

Thanks for the quick replys.

CrossyX

There was no joy with C&G they would not give me a reason. I went with the postoffice and got accpeted for the mortgage lucky really as they have a much better rate (currently 6.02%) on a 3 year fixed rate. C & G were 6.52% fixed for a minimum of 5 years.

Thanks for the advice.

Crossy

herbiesjp

Glad it worked out for you