Declined on credit score - why and alternative lenders?

abc871

Hi,

I am a First Time Buyer looking to buy in London. Am a self-employed professional with good earnings - 4 years' (accountant-approved) accounts, the last 2 of which are in excess of £100k. Looking for 80% LTV mortgage of circa £320k (purchase about £400k).

Had agreement in principle from barclays but have been declined on credit scoring. They won't give any further explanation. I have all 3 credit reports and none show any adverse credit. I have 2 credit cards - 1 for 6 years + no missed payments, 100% of balance paid every month and the other held for 4 months + no missed payments and 100% of balance cleared every month. No other loans or overdrafts. Shows several searches (for car insurance) but only 1 search for credit (for the card opened 4 months ago) and 1 identification search when I opened an ISA last summer with another bank.

Any ideas of any other lenders who may be softer on my circumstances? I do not want to risk applying to places who will just decline for fear of building a long record of searches.

Have tried a couple of brokers but they don't seem to have any sensible suggestions - they say this is just "pot luck".

Thanks!

GMS

Could be options for you.

Speak to a whole of market broker asap

kingstreet

How long at your current address? On electoral roll? How long with your bank? Did you complete all the telephone number boxes?

It could be anything.

The only thing from your opening post is the credit card you've had for only four months. Not enough to get a decline from most lenders but these days, you never know.

What did you want from Barclays? Give me the kind of deal you wanted and I'll see what comes up on Mortgage Brain.

abc871

Have moved once a year for last 3 years (current address for 11 months) as renting. On electoral roll at each and completed all telephone number boxes.

Looking for 2 year fixed ideally. Not overly bothered by rate (within reason!) just need a mortgage after this surprise refusal!

GMS

abc871 wrote: »

Have moved once a year for last 3 years (current address for 11 months) as renting. On electoral roll at each and completed all telephone number boxes.

Looking for 2 year fixed ideally. Not overly bothered by rate (within reason!) just need a mortgage after this surprise refusal!

Based on what you have said there should be a lender for you.

abc871

Any idea who are the "softer" lenders at the moment in this situation? HSBC? Nationwide (who I have an account with)? Santander?

Conrad

Credit score declines can result from a cocktail of factors, even down to the job title you use. Barclays tend to refer to your Bank account information to a greater degree than some non Bank lenders.

Fluctuating income can also have a baring.

Kensington have a softer score, but none the less an EXPERIENCED mortgage borker (not IFA) might be better placed to assist you.

All the best

kingstreet

In rate order, two year fixed deals stand as follows;-

Post Office
Woolwich/Barclays
Cambridge
Coventry
Progressive
Furness
Ipswich
Leeds.

Some will have restrictions on lending areas and other reasons why they won't lend to you. I'd have a look at the others. These are broker and direct products all mixed together.