Northern Rock decline on poor credit score excuse

cheshirelady_2

We have just found out (after a week of waiting for an AIP) that Northern Rock have declined us on credit score. We both have scores over 990 and are in the Excellent catagory. Any suggestions to why they have made this conclusion? Our broker says a decline on credit score means no appeal.

We are trying to buy a new build with 85% LTV, if anyone knows of another lender who might be a better bet and consider us I would be very grateful to hear! Thanks!

Thrugelmir

NR will have their own internal credit scoring system. When it comes to underwriting a mortgage application. Your public profile is worthless in this context.

[Deleted User]

No one's declined you on your credit score, because that's a made up number that only you can see. Rather like having your own personal fairy sitting on your shoulder.

You and your broker need to be looking at your credit report and seeing if there's something nasty lurking there. In conjunction with your deposit, salaries, etc, etc.

kingstreet

cheshirelady wrote: »

We both have scores over 990 and are in the Excellent catagory

Check out the "999 score and declined" thread. The scores are meaningless. You don't have to have an income to score 999 with Experian but it won't get you a mortgage.

https://forums.moneysavingexpert.com/discussion/3158508

Mr Herring's comments are particularly interesting.

Obtain credit reports from all three credit reference agencies to see if there's something you aren't aware of.

cheshirelady_2

I am not sure who all the credit reference agencies are, can someone please confirm?

Is it true that different banks use different agencies?

Thanks

Thrugelmir

cheshirelady wrote: »

Is it true that different banks use different agencies?

Lenders see different data stats from the credit agencies than the ones you can view.

kingstreet

cheshirelady wrote: »

I am not sure who all the credit reference agencies are, can someone please confirm?

Is it true that different banks use different agencies?

Thanks

The three are Equifax, Experian and Call Credit.

Lenders use one, perhaps even two of the agencies.

Getting your three files gives you an opportunity to get a full picture of your situation. Even if you do that, failing a lender's credit score may not be purely related to your previous credit conduct. The system may not like a combination of different things, perhaps your address history, short employment duration, length of time on voter's roll, loan to value, even the development you are buying on if they already have a large exposure to other mortgages/properties there.

The credit files are your first step in eliminating what it could be. As an example, check out SusieWoozy's posts in this thread;-

https://forums.moneysavingexpert.com/discussion/3504313

opinions4u

See a broker.

Lenders are scared of the new build market as it's invariably overpriced so when they come to repossess they lose money.

cankle

A good broker will be able to point you in the direction of a more suitable lender, I thought all was lost when Natwest declined me aparently due to my credit report, I eventually got a mortgage with Abbey. Best of luck, dont give up!!!

dlspttr

Lenders are exceptionally fussy nowadays - Natwest picked on £7 I owed to a "utility company" from 8 years ago while considering a loan application. I finally found out that it was Virgin who had raised a charge in error after service cancellation. But, I had to chase up Virgin and get the charge removed before Natwest could proceed with the disbursement.

cankle

dlspttr wrote: »

Lenders are exceptionally fussy nowadays - Natwest picked on £7 I owed to a "utility company" from 8 years ago while considering a loan application. I finally found out that it was Virgin who had raised a charge in error after service cancellation. But, I had to chase up Virgin and get the charge removed before Natwest could proceed with the disbursement.

Thats pretty much what happened to me! Except it was Orange that claimed late payments from 2008 (which was an error as I have always paid by DD!) had to fight for it to be removed thankfully it has now but too late for the Natwest application!