Rejected by C&G

TerryB_3

Hi All

I got an unexpected call from my broker today. My mortgage application with Cheltenham and Glocester was rejected due to a low credit rating.

Things going for me:
1) My credit record with Experian and Equifax is good.
2) I have been with the same employer and bank for ages
3) Am borrowing 70% of value of property
4) I am on my second mortgage, and applying for a remortgage.
5) Mortgage is 3x my salary

Things going against me:
1) Not UK citizen. I'm a NZ'er, been here nine years with Indefinite Leave to Remain.
2) The property is above a commercial premises.

Does anyone out there have any insider info on C&Gs current policies?
My broker (from London&Country -thanks to MSE) believes that C&G are being inundated with applications at the moment so have tightened their critieria and are cherry-picking.

Since one application has been rejected, I would like to choose my next step carefully as multiple rejections can make it much harder. So, I'm trying to figure out why I was rejected.

All advice and comments are welcome.

Kind regards,
Terry

herbiesjp

Have you checked your equifax or experian reports?This may shed some light on the situation.

I do not believe lenders cherry pick - they take all the business they can.

On the face of it I cannot see why a lender would refuse your application - all seems ok to me.

Again have a look at your credit files and post any information you can.

TerryB_3

I subscribe to Equifaxs service, and got a copy of my report today. It looks clean, except it's a little bare in places (my current mortgage is not on it).
I'm trying to get a copy of my Experian but need t wait for them to post it. I don't expect any issues.

I kept a copy of the mortgage application, and will send that over to my mortgage advisor to see if I ticked a wrong box somewhere.

I asked for an extra £16k on top of the existing mortgage amount of £139K. C&G said that my application was marginal and the extra £16k put it in the "computer says no" category.
The only other anomoly was I overstated my salary by £5,000 accidently (I added my bonus to my basic). Someoen from C&G phoned me to clarify and seemed to be happy with it.

Any other thoughts?

dunstonh

Shouldnt you be asking these questions to your broker? Also, you have to question why the broker didnt check first before submitting the application.

Jays

Have you asked C & G to clarify the rejection? Not sure they have to, or will, but worth a try I should think.

Jays

payless

There's failing credit score and there's not their lending criteria

The lender ( maybe via your broker) should been able to tell you which, and hopefully expand with more info...

AndrewSmith

Just been checking the C&G terms and conditions via sourcing software (Trigold)

Flat over a shop, will only lend a max of 80% of the purchase price, and it must only be the flat not the shop as well.

Will not lend to non-uk residents or foreign citizens

Taken straight from their T&C's

Hope this goes someway to clarifying it?

Andy

TerryB_3

payless wrote:

There's failing credit score and there's not their lending criteria

The lender ( maybe via your broker) should been able to tell you which, and hopefully expand with more info...

I failed their credit scoring. The broker said that C&G won't discuss it further due to DPA. So, I'll try to contact them and see if they can shed any light, but I'm not holding my breath:p

Thanks,
Terry

herbiesjp

Plenty of other lenders happy with properties over shops - did your broker not point out this may be a problem with C&G?

payless

AndrewSmith wrote:

Will not lend to non-uk residents or foreign citizens

yes I wondered if it was more criteria than credit score, although in fairness I have placed many foreigen citizens with them ( EU, Asian , US & Canadian) some as high as 95% & without guaranteed extensions on work permits )

TerryB_3

herbiesjp wrote:

Plenty of other lenders happy with properties over shops - did your broker not point out this may be a problem with C&G?

I made a point of asking him, and he said it should be fine. I'm only borrowing 70% LTV so he thought it would be ok.

Do you think this is the issue?