Our Mortgage Application Was Refused - Advice Please

Completely_Confused_2

Hello everyone, I'm new here and quite desperate and confused.

On Tuesday my fiance and I applied for a mortgage and it was refused. They say that I had undisclosed credit on my credit file - but I declared everything I have. I also have my Experian report and it shows nothing, in fact my score is 934!

I'm completely confused (like my name!). The only thing I can think of is a 2-year credit agreement for sofas which finished last month and I wonder if it's not shown as settled under another credit reference agency (it doesn't show at all on my Experian report!).

I've tried getting a copy of my report from Equifax but it's not bloody working!

On top of this, we went for mortgage advice last September and, without our knowledge, there have been 3 credit searches from mortgage lenders on my file! We didn't even complete an application form!

This is so frustrating because we have found a house that will pay our deposit and put in carpets - we are first time buyers.

Are we going to be able to apply to another lender?

I'm so worried about this - I can't sleep.

Many thanks to anyone that can reassure.

CC x

AndrewSmith

Have you also checked and seen your fiancee's credit report to see if the outstanding credit is in their name?

Completely_Confused_2

AndrewSmith wrote:

Have you also checked and seen your fiancee's credit report to see if the outstanding credit is in their name?

Hello, thanks for your reply. All I've been told is that the undisclosed credit is in 'the lady's name'. That's me!

The only thing I can think of is that the sofa credit I had and that the haven't updated my credit file.

This is just awful.

CC x

MortgageMamma

Its likely its the sofa. when did you get your credit report? is it recent?

Who was the lender? Did you not explain to them the sofa has been paid off were you a bit too shocked?

Sometimes it can take up to 28 days for your credit report to be amended following clearance of a debt so that could be a factor

Completely_Confused_2

Thank you MM!

I last spoke to the mortgage adviser on Friday afternoon and it only occurred to me it could be the sofas on Friday night. Of course I will tell them about it on Monday when I speak to them.

I never mentioned the sofas at all because I knew the agreement had ended. I have a credit report from Experian which doesn't show the sofas at all! So I'm assuming the lender has checked Equifax. I've been trying all weekend to get my report from them online but it isn't working.

The lender is Newbury BS.

My mortgage adviser told me not to let this ruin my weekend and that they will try another lender but I'm afraid it has ruined my weekend! I can't help but worry.

My Fiance is going spare with me because I won't let it drop. I've never been refused credit before and this has come as a real shock, together with the unauthorised mortgage searches from September I feel like it's all doomed.

CC xx

MortgageMamma

I would be tempted to write a letter of complaint regarding the unauthorised mortgage searches. thats out of order and I'd want to know why so many?

You are right in that equifax and experian hold different info about you, so check the other one.

Don't let it bother you though, seriously, there's much better lenders to go to than newbury BS. BTW, why did your advisor recommend them?

Completely_Confused_2

I'm so glad I found you!

Well, the mortgage adviser pulled them up on his screen (along with a few others that I didn't really take much notice of).

I think he went along with them because a) they were multiplying our joint salary by 4.5 and b) there was no MIP.

Although he did say it was the first time he had used them.

Do you think we will have trouble applying to a different lender now that we have been refused?

MortgageMamma

no not at all, but I do think you better check your other credit report for the sofa finance. like i say sometimes it can take a while for it to be removed. Are you on a tight income stretch for your mortgage? is it a 100% mortgage you are wanting or lower? if so, there are lenders which could potentially lend you much more than newbury without a MIP. Was your advisor very young? (am not critisising his advice just wondering why he recommended newbury, but it would be the most suitable yet!)

Completely_Confused_2

No he's not particularly young to be honest.

We have a builders deposit of 5%. We earn £54,400 between us plus OH gets £6k per year in bonuses.

If your mortgage application is declined, can you go back to them with an explanation of what they have found, or is that the end of the matter as far as Newbury are concerned?

MortgageMamma

You could try getting your broker to speak to the underwriters at newbury to put your case forward. Abbey accept builders deposits, so do royal bank, cheltenham and gloucester (although they can be picky about builders) nationwide accept them too. Nationwides income mutliples/affordability is better than newbury's.

Completely_Confused_2

Nationwide? Gosh really?

I do recall him saying that Newbury were quite new also! Don't know what that might mean though.

Do you have experience of Newbury at all?

One other question, my OH has a satisfied CCJ from 2001. He also has a certificate of satisfaction. Is that necessarily a problem?

I can't wait for Monday now to tell my mortgage adviser about the sofa thing. My other thought is that they could have got the info from my bank statement because the last payment was in June showing as 'Black Horse'.

Now I know I can explain it I feel a bit happier. Just the excess mortgage searches to worry about now.

Can you tell I'm a worrier???

CC xx