Looking for advice please re credit status

ClaireMC

My husband and I both have really fantastic credit ratings we each earn a good wage, albeit from our own companies. We have never missed payments or been in huge debt. We ahve credit cards which we regularlu pay each month. Our mortgage is around 50% of the value of the house. I have been with the same bank since 1994 etc etc- so all looks good.

I applied to my mortgage lender (Halifax) to increase my mortgage by £20K for home improvements and was declined due to our credit ratings. So I went on all 3 of the main credit reference agencies and downloaded our files, which were all excellent with nothing negative at all, and forwarded them to the lender asking them to reconsider and explain what the issue was. They called me and said that it was nothing to do with the reports from the agencies but to do with their own automated system which rejected us but they can't tell us why as they don't know due to it being automated!!!! I don't understand this. I realise no one has the right to credit but why are they refusing to lend money to us when we seem such a good bet?

I also spoke to my bank to change my mortgage to them and they declined saying that they didn't think that we could afford the payments. I have never missed a payment ever in all the time I have been with them and £20K would not be a huge increase over the 15yr life of the mortgage and also payments to the car that I bought 3 years agoi have now stopped so I have that money extra too!

I'm so confused as to what we have done that is causing an issue here. We have discussed moving home in the next year or so but I am worried that if there is some invisible issue that I can't see we won't be able to - we can't get a £20K extension let alone applying for a new mortgage!!

Can anyone shed any light/thoughts on this? Is it simply that these people don't think that they will make enough out of us or is there something I am not aware of?

betmunch

There could be any number of issues, although the good credit files is a good point.

Lenders are generally being a pain in the !!!!! right now.

I would suggest you get a good Independent Mortgage Advisor on the case, although I am clearly biased.

Stop applying until you find out what the issue is as the credit searches are startign to add up and may become an issue on their own.

Dave_Ham

There will be a reason, for sure. Halifax are amongst the most flexible lenders and to credit score a mortgage client who has paid on time then there will be a serious size issue I am afraid.

So; have either of you been declared bankrupt or IVA previously?
Have you done both credit reports for all 3 agencies? and you physically seen all the reports and not just been told mine is ok thanks..
Any criminal proceedings - frozen assets etc.?
Have you been late on a very recent piece of credit - even by a few days?
Anyone else financially linked in the picture?


Do you bank with Halifax business wise and they can see what you have put through your accounts?
How have your self employed accounts been structured?

Now this is a personal request from me, quite often lately myself and others have tried to help people and after about 15 posts something comes out of the woodwork that has not been mentioned (quite often deliberately) and wastes our time.

I will happily help you try and find this yourself, but the last one I recall was an OP saying perfect credit ratings etc. and then saying it could be that OH was bankrupt 7 years ago, but that does not show on the credit report...!

Any further ideas from above list?

The_J

If I had a pound for every time someone said they had a good wage from their own company... I'd probably have £100.

What is your net profit from your companies for the last 2 years? If they are limited companies, how much is the salary + dividends for the last 2 years?

How much is outstanding on your current mortgage?

Have you got any outstanding commitments (loans, credit cards, hire purchases, childcare etc.)?

For Halifax to reject on credit score at 50% LTV suggests something bad but they could just have been fobbing you off.

betmunch

The_J wrote: »

If I had a pound for every time someone said they had a good wage from their own company... I'd probably have £100.

I'd have way more than that!

Could be a problem showing up on the Hunter system? Halifax are very keen on that arnt they?

ClaireMC

Seriously neither of us has been declared bankrupt or IVA. I have the physical copies of the reports for both of us for all three agencies. No criminal proceedings - frozen assets etc ever. Never been late on any credit as all DD or SO. Ther is just the 2 of us no one else in the picture.

My net profit is around £110 - 120K each year for the last 3 years taken as salary & dividends - my husband much less as his business has stagnated recently. Outstanding mortgage around £250K.

Yes we have school fees, credit cards & HP all set up as DD or SO and never once missed.

I don't know what the hunter system is so can't comment. I am just trying to find where the block is. I do owe the £9k to HMRC but I am paying that in installments & that has only just been agreed over the last two weeks so before this issue.

betmunch

They could have asked HMRC to confirm your income and HMRC came back with a £9K unpaid bill.

This could be the issue, although I have to admit I've not heard of it before. The option to confirm income like this is relatively new so cant be sure what it will or wont do for them

The_J

ClaireMC wrote: »

My net profit is around £110 - 120K each year for the last 3 years taken as salary & dividends - my husband much less as his business has stagnated recently. Outstanding mortgage around £250K.

Can you fill this out to as near as you know is accurate for both of you?

2010/2011 - Net profit - Salary + dividends
2009/2010 - Net profit - Salary + dividends
2008/2009 - Net profit - Salary + dividends

Yes we have school fees, credit cards & HP all set up as DD or SO and never once missed.

How much are these specifically a month? Forget that they've never been missed, that's irrelevant. They aren't supposed to be missed.

I don't know what the hunter system is so can't comment. I am just trying to find where the block is. I do owe the £9k to HMRC but I am paying that in installments & that has only just been agreed over the last two weeks so before this issue.

Unlikely to be the issue. More likely is the income.

Who is your bank? You really need to speak to a broker.

ClaireMC

Thanks The J I will dig this out this evening and post as I don't have it to hand. Appreciate all guidance here thanks,

Thrugelmir

ClaireMC wrote: »

I am just trying to find where the block is. I do owe the £9k to HMRC but I am paying that in installments & that has only just been agreed over the last two weeks so before this issue.

If your business is generating an income of over £100k a year. Then something doesn't stack up. As you should have the cash to settle HMRC liabilities as they arise. Also suggests a total lack of savings.

How much do you owe on credit cards, unsecured loans and HP ?