Halp! Mortgage application rejected at credit score stage!

mrpang0

Hi there,

Advice needed please - went through an in depth credit score thing over the phone with HSBC, and I didn't quite catch why my wife and I was rejected - all I know is that it was a rejection, and the customer services rep said 'contact us again when your circumstances change'...

What does that mean exactly? Its like some alien language

Is it worth trying another lender or do I now have to 'wait' before trying another lender?

Sad.

Thanks!

Dan_1976

Get a credit report and check the info and score.

Also what is you situation, are you employed etc?

Mrs_Bumble

Hi

Each lender will set a credit score that they require for an application, they all set their own scenario.

Have you had any problems in the past with missed payments or anything? Could just be a case that you haven't had enough credit in the past for them to establish a credit score. Or have you recently been shopping around for credit, could you have been searched several times as this can bring the score down as well.

You can obtain a copy of your credit file from Equifax and Experian and you can check to make sure that there is nothing untoward showing on there.

Now that HSBC have carried out a credit check and scored you will mean that you will either have a full search or a soft search showing on the credit file, if you go around lots of lenders now that could mean that you have lots of searches showing which could also bring your credit score down.

mrpang0

I have never missed payments, and I think this may be the 2nd time I've done credit scoring this year - first was in February on a much lower amount for a mortgage (though that probably doesn't make any difference).

There's a sneaky suspicion it may be from my wife's side - she's not British, and we moved back to the UK June last year, and HSBC probably use a UK based credit scoring system? I think I called Abbey before and they use a different type of scoring depending on circumstances.

Maybe it could be the fact I was away from the UK from 2005-2008? Anyway, I'm going to get a copy of my credit report... Maybe it could be as you said - I don't have enough information available on their 'systems' to get an accurate credit score.

Completely silly way of scoring - we both have full time jobs, got a 25% deposit - I've been banking with HSBC for about 15 years, and the mrs 5 years...

danielanthony

Are you both registered to vote? Also, as you were out of the country from 2008 you cant give the last 3 years of UK addresses, due to you not being resident. For security clearance you need to have lived in the UK for the last 5 years, I presume there will be some sort of similar requirement from companies lending you £1000's.

Mrs_Bumble

Lenders usually require 2-3 years credit history in this country as they can't check anything outside of the UK.

luckyfool

The fact that you do not have 3 yrs UK credit history will impact greatly on your score, and HSBC are pretty tough/conservative. Definitely check your credit reports to make sure it is just that, and that there is no derogatory information.

If it is just a low credit score issue, then there are lenders who will look more favorably on you than HSBC, might be worth speaking to a whole of market broker.

Also - Your wife, what is her nationality, and residency status in the UK? Does she have permanent right to reside or is she on a spousal visa? Depending on that information some lenders might not be willing to lend with her on the mortgage.

Conrad

I've noticed some adviser aften advise people check thier credit files, which is fine, but just to add for general interest it is worth keeping in mind an applicants credit file only plays a partial role when it comes to scoring.

Just as important is the general stability of the client - small things like not giving a work landline for example have an adverse affect. This is because the people that wrote scoring systems more than 10 years ago did a massive study into the types of traits defaulters tended to exhibit. Using the work phone factor - it was found people who did not give a work land line statistically had a much higher propensity to financial difficulties.
The same was true of smokers, non voters, address / job hoppers and many other facotrs.

Just thought I'd mention this - your experien file is not the be all and end all.

grogdog

any idea ,how many points getting on the voters roll adds to your score.?

luckyfool

grogdog wrote: »

any idea ,how many points getting on the voters roll adds to your score.?

Meaningless. With lender a) it might be 10 points, with lender b( it might be 100 points. All the lenders use their own scoring systems, but I would say that being on the voters roll is up there with not moving house regularly as being a large factor in the scoring with most lenders.

mrpang0

My Wife is on a Spouse Visa - We tried for a mortgage back in January with First Direct, and this was an issue with them (it isn't permanent residence, so there is no guarantee that she can 'stay after the visa expires')

Although I spoke with post-office mortgages, or someone else, I can't remember exactly, and they said for non uk citizens, they will use a different scoring system because the credit history aspect.

Will try another lender... I'm pretty sure in January we went through a detailed check with Lloyds TSB, and that came out positive.