Fair Credit but refused mortgage by Northern Rock? Please please give me some advice?

abi.marshall

My partner applied for a mortgage last night with Northern Rock and got all the way through the application, was granted the mortgage and then the lady on the phone said oops there seems to be a problem with the credit check (she'd checked it twice) and then couldnt wait to get him off the phone. When asked what the problem was she just kept saying "Im sorry I cant say"

He's checked his credit online, it absolutely fine - no debts/late payments/no CCJ's/long term emplyed AND we have a £20,000 deposit ready to put down. He has a "fair" rating of 880 out of 1000.

He's also had 2 mortgages granted in principle in 2 years from other lenders (cheltenham and gloucester and I forget the name of the other)

I have never had a credit check, never needed to as I've never had any type of debt, no credit card and never even had a bank charge or late payment on direct debit. I have to wait until 9am this morning to check my credit.

Can anyone help?? Im so upset - we've found our dream house, the offer has been accepted and now its just come to finding the best mortgage deal, and weve been turned away by the first one we tried..

So my question is.. Could it be my fault? Is no credit worse than bad credit?? And would it make any difference if he did the mortgage himself without adding me on it?? He's trying Vernon and Cheltenham and Gloucestre today but I'm worrying myself sick.

Im really thankful in advance for anyadvice you can give.x

Senior_Paper_Monitor

Recommendation - stop bashing in Decisions in Principal (DIPs)/Applications immediately .... these will only worsen your credit rating.

Go and find a good mortgage broker/ifa and provide them with your history of applications, all credit related paperwork including Experian/Equifax reports for you both. Ask family and friends for recommendations.

If nothing specific can be identified let the broker/ifa talk with an appropriate lender (one where they have a relationship and individual manual underwriting can be used) and try the process that way.

payless

to find out if a problem best to confirm which credit ref agency NR used... and search them yourselves .

we don't know what LTV.. guess its fairly high .. so tighter criteria

abi.marshall

Im sorry, I dont know what an LTV is? Sorry Im very new to the mortgage game!

payless

LTV - Loan to value

Value of mortgage divided by Property value x100 = LTV

the higher the figure, the more strict the lending criteria

herbiesjp

Also, what are your incomes?

Do you have any other debts?

Not having any/enough credit history can also go against you.

Depending on the LTV you are looking at, the problem of no/little credit history can be overcome with some lenders.

abi.marshall

hanks for that, the value of the house is 124,950 and the mortgage will be for 105,00 we have £20,000 deposit, could this be that northern rock are just being very particular about lending with them??

abi.marshall

Sorry no other debts at all, he earns around £30,000 a year and I earn £510 perm month

herbiesjp

It could well be you do not get a high enough score with NR.

That does not mean you will not get a good score with another lender though.

As stated above, you should stop running credit searches against yourselves, and get a broker to look at this for you, just to make sure there are no other reasons for your application to be declined.

Too many credit searches against you, and it will make getting a mortgage even more difficult.

abi.marshall

Ive got back in touch with a mortgage/broker/adviser who has previously had a mortgage in principle granted for us and shes going to look at it - does this mean there is light at the end of the tunnel? JUst because NR turned us down maybe its not a lost cause?? Im worrying myself sick over this

Thanks for replies so far, keep em coming!! xxx

scrounger_2

Abi, keep your chin up its a rougher world out there these days, where mortgages and loans are concerned I know its hard Ive been there!