Extra Borrowing advice

Hi All,

Had a mortage review with Halifax today to request additional borrowing. All the figures stacked up, but for some reason it was reffered to the under writer. I was told that this is likely due to me having taken out a personel loan within the last 6 months so my credit search was shoiwng up that this was the 2nd time that credit was being requested in the last 6 months and as such my application is likely to be turned down.

I've checked my experian credit report and I have a score in excess of 870 making me a 'fair' scoring applicant.

Is this likely to be the case with all lenders or is it as just to do with Halifax as I applied for a personel loan and now a mortgage increase ??

Thanks

Replies

  • happybrokerhappybroker Forumite
    1.3K Posts
    I think "likely to be turned down" is a bit strong, I assume they took details of why you borrowed the money on the personal loan?

    Certainly a recent application will affect your score but provided everything fits on income still I would be surprised it it gets "turned down".
    Happily an ex mortgage broker!
  • jstonejstone Forumite
    3 Posts
    Hi, thanks for that , Yes they asked me why I took the loan and I said it was for paying off credit cards in a structured manner.

    My concern is that this may be the case with all lenders. My credit score seems fine, there is plenty of equity in the house and my partner and I , having checked with other lenders free mortgage calculators, could obtain far more additional borrowing than we require. As such not sure what is going on and whether is is worth talking to other lenders ?

    Cheers
  • Halifax further advances are credit scored on an internal score aswell as your experian one.
    Was it within your maximum lending limit and LTV ?
    If yes to both of these, the only reason it would go to the unerwriters is if you got a C credit score with the Halifax. They rank customers as A - no further underwriting needed, B - some additional info required, or C - full underwriting is needed and this will be done by assessors that are not branch based.
    If you are within limits, and all of the info you gave your reviewer confirms your application info, then as long as a good business case is put thtough on your behalf, there shold be no reason for a decline decision.
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