Skiptons

richcoleuk

Hi,

Just been through a mortage application with Skiptons for their 95% LTV. Out joint income is ~= £100K before bonuses etc.

We got declined due to adverse credit, to which I was told to phone Call Credit. Speaking to them and viewing my report on their website I don't have any bad points and according to them have 5/5 for my history. They also told me if I spoke to Skiptons (ask to speak to a manager apparently) they should be able to tell me what exactly they didn't like about my credit report.

I'm really concerned I've gone and messed up any further applications we may go on to do.

Just looking for some help!

Rich

Senior_Paper_Monitor

At 95% it doesn't need to be anything wrong - just doesn't fit their financial profile (spend patterns etc).

I seem to recall a well informed source telling me recently they had been rejecting 80% of these applications.

richcoleuk

Ok - is it something that's worth chasing? Is trying to get it resolved only going to make things worse?

Also does anyone know what kind of impact this rejection has on your scoring history?

Sorry just a bit worried, as if being a FTB buyer isn't hard enough at the moment

Rich

kingstreet

I suspect with the cosy ownership arrangement of Call Credit & Skipton BS you'll go round in circles with CC saying "ask Skipton" and Skipton saying "ask CC."

It's difficult enough to get a 90% mortgage these days, let alone a 95% deal from practically the only lender currently offering them.

The required score will be set remarkably high and there's no way of knowing which bit of your financial make-up is stopping you short of the finish line.

Could be address history
Could be employment history
Could be where you wish to buy
Could be anything.

A single search should have no impact on your credit worthiness. Just don't run around having searches done indiscriminately.

richcoleuk

Thanks for the advice. Our other option, other than letting go of the house we've fallen in love with, is with the Nationwide. We've been part of their "Save to Buy£ mortgage scheme which will become available to us in November.

Guess we'll have to hang on and see if the regular savings we've made with them makes a difference

Thanks again

Richard

kingstreet

If you haven't already, get in touch with a whole market or independent broker. How much do you need?

New today;-

Hanley Economic Building Society is now offering its 95% LTV mortgage via brokers.

The three-year discount product has a rate of 4.75% and a fee of £499, while it comes with £250 cashback and a free valuation.

For direct customers the product is only available in Staffordshire and has a maximum loan size of £150,000, but via brokers it is available nationwide and has a maximum loan size of £250,000.

richcoleuk

The application was made at 95% of £290k. Potentially we could make a few things happen to reduce the loan value, but it'd still be below 10%. Is it ever cut a dry 5/10%, or can you improving your chances with anything in between?

Not getting hopes up but just rang Skiptons as the Call Credit report didn't show anything at all. They checked my report and couldn't see anything, they then called through to lending support and they had no idea why I'd been rejected, it's been passed to a manager to look at. Like I said could be wasting my time, but I guess the worst that will come out of it will be understanding why I've been rejected.

Also if I re-apply with the same company, do they run another credit check?

Rich

kingstreet

Think of credit scoring as a food mixer. If you throw the right ingredients in, you'll get out something which can be useful. If you throw in the wrong ones, the end result may not be what you want, or expect. Problem is, the cook book doesn't tell you how much of each you need.

If, as SPM has suggested, Skipton is declining 80% of these 95% applications they are turning down some really good quality applications because they have only limited funds and right now, the entire UK is applying to Skipton as there's no-one else out there. The Skipton is in a position where it can cherry-pick only the best cases.

There may be no visible reason for the decline, just a frustrating "computer says no."

richcoleuk

Thanks for all the information kingstreet, and I like the analogy!

I'm going to flog this horse with Skiptons until I know it's dead and then will follow up the Save to Buy with Nationwide in a months time

Rich

AskMeAnother

Just to try and give you some hope (hopefully not falsely) - I have dealt a lot with Skipton recently on 90 and 95% applications and have to say that so far everyone that was referred ended up being accepted.

They do have an appetite for lending (else why offer such deals in the first place) - but they also look carefully at things like bank statements and account conduct etc can be a factor. The probably haven't seen your bank statements yet but I would say if you are not "well behaved" in that department it may not be worth fighting the credit score issue.

For what's worth, if I were you I would also fight with Skipton until it's 100% dead - like I say, I have defo seen several deals turned around in the last 3 months.

Good luck!!

richcoleuk

Ok - got as far as this.

Basically they called me back and told me they wouldn't be able to say any more but would need to speak to my Fiancee. Turns our she has some kind of issue back in 2006 and that was the only thing that stopped us. As my income makes up 80% of our money, I asked them if I could apply on my own. The affordability came back at well over our loan but for the final check they'd need to run another credit score against an application on my own.

Now in a bit of a quandry around applying again on my own and potentially leaving another foot print on my record.

Any help greatly appreciated

Rich