Mortgage Declined

JOJOSHOES

Hi
I am hoping someone can offer some good advice; my partner and I recently applied for a joint mortgage. We both earn a good salary and are only applying for a relatively small amount compared with what we are 'allowed' to borrow. We will have a 15% deposit from the sale of my current house. However - we have now been declined by both HSBC and Santander. We believe that although we have good and excellent credit ratings; it may possibly be because we both missed a credit card payment about 5 years ago and I had a dispute with Orange about 6 years ago. Since then nothing has been late / outstanding however there are notes on the Experian file.
Does anyone know of any mortgage lenders that would offer?
Thanks:)

holly_hobby

IMHO you wouldn't have just been declined because you missed 1 payment 5 yrs ago - unless the creditor registered a default against you.

You say you had a dispue with orange 6 yrs ago -did this end up as a default or CCJ?

Did they indicate that the rejection was due to adverse data?

Have you a copy of your credit report?

Are the missed payment and dispute with Orange justified or easily explanable?

Did you disclose this data at the time of application? (as a rejection can sometimes be on something small such as one missed payment, but if the app asks and the applicant doesn't give details, with it later appearing on credit check -the lender can take this to be non-disclosure and then be a bit tetchy on the whole app - especially when you are going up the LTVs).

Hope this helps

Holly

Experian_company_representative

Ask the mortgage providers to specify their reasons for refusing your applications. They should be able to tell you the general problem eg adverse CRA data, low overall credit score etc.

If you've checked your credit report through Experian's free trial and you've not cancelled yet you can consider using the free lowermybills tool that suggests deals based on your actual credit report.

But you should investigate the credit refusals first before making any further applications. Although credit refusals aren't recorded on credit rpeorts, lots of credit applicaitons in a short space of time can affect credit scoring.

James Jones

kingstreet

JOJOSHOES wrote: »

however there are notes on the Experian file

Could you kindly elaborate on the "notes" you are describing?

JOJOSHOES

The Orange problem shows up as a default. Basically my bill was logged as over £500 just for one month - after much dispute I paid the balance off so no CCJ just late payments where I refused to pay for 3 months. This was in 2008. My partners late c.card was 1 month only and 6 years ago.
I have a few store cards - all low in amount so I can pay off and they are all paid on time too. My mortgage payments are always on time and I have 1k on a credit card which is being paid off. I asked HSBC for more details when we were refused but they said they couldnt be any more specific. We now have 3 Lender searches that have shown up and I am wary of trying somewhere else!

kingstreet

Find a whole of market broker and go through the files with them. They should come away with a much better idea of the best likely lender.

Smaller building societies can be more flexible and not credit score. Other specialist lenders can be good for "near prime" business.

betmunch

JOJOSHOES wrote: »

late payments where I refused to pay for 3 months. This was in 2008.

If you was a mortgage lender and you had two applications, but only enough money to lend to one person would you choose:

a) The person with a history of refusing to pay a bill because he was in dispute with a creditor

b) The person with a history of paying everything come what may.

I think you will see their logic. However, I agree with Kingstreet speak to a whole of market broker, there are lenders out there who would probably take you on with what you have posted.

Good luck

funky1471

Did you even get past a decision in principle with these applications? Or do not all lenders do one before a full application?

Also what's the value of the house etc?