mortgage jitters

emmahane

my partner and I have just been through a telephone appointment with hsbc who i bank with, they have rejected our mortgage because of me but have said that because i bank with them they get to see more into my bank account than another lender would. I have my experian report and although i have some late payments (in orange) MY CREDIT SCORE IS 999 which comes under the excellent categorey, we are in the process of applying to yorkshire bank with a 10% deposit, our income is 90 grand between us, do you think i will have a problem with them as they have said they use experian to credit check, any advice would be great

emmahane

any feedback would be appreciated

herbiesjp

Without seeing a copy of yuor credit report it is difficult to say.

However there should be other options to look at.

What is the actual mortgage amount needed?

At 90% lending underwriting is extremely tight, so even the slightest thing could trigger a decline i.e. late payments

opinions4u

emmahane wrote: »

my partner and I have just been through a telephone appointment with hsbc who i bank with, they have rejected our mortgage because of me but have said that because i bank with them they get to see more into my bank account than another lender would.

HSBC have had some excellent deals in recent months but have been (wisely) selective in who they lend to. Cherry picking the best quality customers to minimise arrears risk.

I have my experian report and although i have some late payments (in orange) MY CREDIT SCORE IS 999 which comes under the excellent categorey,

But a lender can interpret the information on the credit report in the way they choose to. Look at it from their point of view - if you don't pay your phone bill on time what hope is there for meeting a much bigger commitment? Have you had any direct debits or cheques bounce on your current account?

we are in the process of applying to yorkshire bank with a 10% deposit, our income is 90 grand between us, do you think i will have a problem with them as they have said they use experian to credit check, any advice would be great

As I said before, different lenders will interpret the credit reference information in different ways. I don't know how much your purchase price is, but given your income is there any way that you could up your deposit to 15%?

I don't know how friendly the Yorkshire's policy is at the moment, but you don't want to get yourself in a position where you are approaching multiple lenders and having multiple credit checks registered against you.

Possibly time to visit a whole of market broker who has a better feel for which lenders are less likely to say "no" on the back of a small deposit and a being a few days later with a phone bill.

emmahane

thanks for the reply, the mortage amount is £261,000, we have been told in principle by yorkshire that they weill lend that amount but its all down to the credit check now, i thought it would go on my credit score which i did 3 days ago and like i said was 999

emmahane

we were told by hsbc that their search didnt go asd far as to show up on my credit file

emmahane

i should say as well for the past 6 moths i havnt had any late payments

herbiesjp

But you have to pass the lenders credit scoring system - the score you get on your credit report is irrelevant in that respect.

So if their system says, decline applicants with late payments, then that is what will happen.

You need to speak to a true whole of marlet adviser, who can research deals that are offered direct to customers such as the ones you have gone for, along with any broker exclusives.

emmahane

is there any way to find out their criteria before we go through the whole process with them, also it would be good to hear from anyone who has been through the mortgage process with yorkshire bank

emmahane

if they said no would a guarantor help?

herbiesjp

You would need to ask the lender - however they are likely to say that you will only find out by doing the credit check