Loan rejections despite excellent credit rating

hoppersisters

I am looking to borrow c.£50k in order to complete renovations on our home. By completing the work we will be able to sell the house at a good profit thereby reducing the mortgage considerably and settling outstanding credit card debt and small loans. We have had the house valued as it stands and with the proposed work completed and have had confirmation that we are correct in above reasoning. I have tried to borrow c.£25K but been refused despite my credit score being excellent. I think this is because I have a large mortgage and lenders are deciding that I cannot afford extra borrowing. I run a small building business with a partner and was thinking about approaching the bank to see if they would finance the build costs, perhaps by a secured loan but on the agreement that as soon as the building work is finished the house would be sold and then the loan repaid. Can anybody offer any advice on my best way forward to secure this borrowing. I can't keep applying for loans as I think it will start to affect my credit rating. Many thanks.

BoGoF

Who told you you're credit score was 'excellent'. Don't tell me you paid for a credit reference agency 'score'. Pay me £6.95 and I'll tell you your score is 999 - that's what clout it has.

BugsyBrowne

hoppersisters wrote: »

I am looking to borrow c.£50k in order to complete renovations on our home. By completing the work we will be able to sell the house at a good profit thereby reducing the mortgage considerably and settling outstanding credit card debt and small loans. We have had the house valued as it stands and with the proposed work completed and have had confirmation that we are correct in above reasoning. I have tried to borrow c.£25K but been refused despite my credit score being excellent. I think this is because I have a large mortgage and lenders are deciding that I cannot afford extra borrowing. I run a small building business with a partner and was thinking about approaching the bank to see if they would finance the build costs, perhaps by a secured loan but on the agreement that as soon as the building work is finished the house would be sold and then the loan repaid. Can anybody offer any advice on my best way forward to secure this borrowing. I can't keep applying for loans as I think it will start to affect my credit rating. Many thanks.

Do you earn over 100k a year.

PNPSUKNET

building industry isnt that stable, maybe a reason?

serverking

Please join Credit Expert - you can get a genuine credit score for £5.95 (creditexpert.co.uk)

Credit Expert and Experian are the two main credit scoring companies used in the UK. You may be able to check your credit history, such as missed payments. And the more loans you search for, the more desperate you will appear to any lender (I know, it's happened to me recently) each search leaves a 'mark' on your credit score. Do not search for anything for the next 6 months, make sure all your payments are up to date, and you should be fine.

Please stick to the mainstream banks on the high street - avoid the backstreet lenders (Everyday Loans, Yes Loans, Wentworth, Toothfairy etc.) and I'm sure with the next application things will be fine. You can always ask a bank such as Barclays to put in an appeal on your behalf - they may need to see payslips and a statement (3 month's worth) to see if you can manage the loan before they make a decision

BoGoF

serverking wrote: »

Please join Credit Expert - you can get a genuine credit score for £5.95 (creditexpert.co.uk)

What twaddle, the score they give is a meaningless number. Stop encouraging people to waste money - do you work for them

Tixy

serverking wrote: »

Please join Credit Expert - you can get a genuine credit score for £5.95 (creditexpert.co.uk)

Credit Expert and Experian are the two main credit scoring companies used in the UK. You may be able to check your credit history, such as missed payments.

Creditexpert is experian.
The are 3 CRAs in the UK but you've only mentioned one of them. Please don't pay £5.95 to check a score files though - either use a free trial and cancel before you are paid or just buy the statutory report for £2 which has all the info you need.

BugsyBrowne

serverking wrote: »

Please join Credit Expert - you can get a genuine credit score for £5.95 (creditexpert.co.uk)

Credit Expert and Experian are the two main credit scoring companies used in the UK. You may be able to check your credit history, such as missed payments. And the more loans you search for, the more desperate you will appear to any lender (I know, it's happened to me recently) each search leaves a 'mark' on your credit score. Do not search for anything for the next 6 months, make sure all your payments are up to date, and you should be fine.

Please stick to the mainstream banks on the high street - avoid the backstreet lenders (Everyday Loans, Yes Loans, Wentworth, Toothfairy etc.) and I'm sure with the next application things will be fine. You can always ask a bank such as Barclays to put in an appeal on your behalf - they may need to see payslips and a statement (3 month's worth) to see if you can manage the loan before they make a decision

Join credit expert to get a genuine credit score, you are either james jones in disguise or you have just left the dippy club.

PNPSUKNET

i give creditcon scores for £2.99

redqueen_2

No-one will lend you £50,000 on an unsecured basis, £50k is the max you would get on a secured loan.

However, the combination of 'a large mortgage' would mean your equity level probably isn't sufficient to get a secured loan.

Your income level would have to be very high to ensure affordability on any large loan.

Also you mention other unsecured debts so your overall commitment to debt is also probably too high despite your good credit rating all the other factors mentioned above are used to assess you.

Experian_company_representative

I suspect redqueen is right. That's a large loan.

As others have said, CreditExpert is a service provided by Experian. The other two CRAs are Equifax and Callcredit. Serverking is certainly not an Experian employee as we are not allowed to recommend products like this.

As for the scores you can get from the CRAs - these show YOU how we rate your credit report information. Lenders' scores are based on a wider selection of data than this of course. But our appraisal of your credit report is not as irrelevant as some suggest. Whilst the Experian Credit Score is a little less sophisticated than the scores lenders work out, it is based on scorecards we have built for major UK lenders, so it is actually a useful insight. Incidentally, credit scores are now included in the CreditExpert free trial.

James Jones