Credit Score, Declined

SirYamalot

Hi allIm at a current loss having been scored by a bank for a FTB mortgage the result came back as declined. Il add at this stage that it was a 95% mortgage so I know they will be very tough on you. However... my score on Experian and the missus is above 970 in the excellent category. I have viewed our reports many times and all is green!... there are however a couple of late mobile phone payments (due to unemployment 3 years ago). Surely these cannot be responsible? Our combined earnings are 69k, house value 215k.Im now of the opinion to save 10% and go to a mortgage broker but im stumped as to the credit score decline.ThanksSirYamalot

Dave_Ham

95% mortgages are unfortunately very hard and any small amount of adverse can throw them out.

I have had some success though so they are out there, albeit with building societies rather than a bank.

I have also seen a client where they did the Nationwide Save to buy for 95% and went through.

Good luck

SirYamalot

Dave_Ham wrote: »

95% mortgages are unfortunately very hard and any small amount of adverse can throw them out.

I have had some success though so they are out there, albeit with building societies rather than a bank.

I have also seen a client where they did the Nationwide Save to buy for 95% and went through.

Good luck

Thanks for the response Dave, unfortunatley the 95% mortgage was with Nationwide, Save to Buy account held for 7 months... im just stumped as to why it was declined! The Nationwide guy did say that sometimes the decision can be overturned by an underwriter but in our case that is not even possible. Ive asked for an explanation but was just told to obtain a copy of our credit reports.. which is all green, score -21 points lower because of recent search but thats it. :-/ I just cant think of what it could be.

kingstreet

Failing credit score doesn't necessarily mean the information from a credit reference agency is to blame. That's why the scores from the likes of Experian and Equifax are indicative at best.

You may not have lived at your current address as long as the perfect applicant, so you'll score fewer points. You may not have been employed as long. You may not have sufficient time with your bank... and so on.

The higher the loan to value, the closer you have to get to that "perfect borrower" score to pass.

The late payments won't have helped, but they may not be the only reason.

SirYamalot

Just got to the bottom of the problem, the missus has found an outstanding default of £600 from 2006 issued by Barclays due to her account with them being in arrears and not paid off. This came as a surprise to her as she closed the account in branch in 2003 with the balance at 0... although she thinks a montly charge for the account must have been still coming out, as if the account was actually closed by bank in 2006 then 3yrs of a account fee coming out would probably add up to around £600? We have requested more info from Equifax as it was on their credit file only, not on any of the others. She has contacted Barclays who state the matter closed and passed to a collectors, although they have no record of what collector?, sounds bit iffy to me!... basically so far it sounds like the default is an error on Barclays part.Im just looing for some advice on what impact this will have on us?, if the default is cleared because of Barcleys error, or in worse case... default amount paid off by us to close the matter. Where would that leave us with mortgage options? Both FTB's with combined earnings of 69k, 10% deposit for 220K property.ThanksSirYamalot

The_J

I would aim for 10% whilst complaining to Barclays to get that removed.

Conrad

SirYamalot wrote: »

Where would that leave us with mortgage options? Both FTB's with combined earnings of 69k, 10% deposit for 220K property.ThanksSirYamalot

I could only see a small regional Building Society doing this one unless the default is completely oblitorated from her credit file. They will take a view on a common sense basis.

Most of all they will want to gauge whether your partner is organised and responsible and likely to keep up payments and honour all matters going forward. They will request 3 months Bank statements and these will need to look good. No gambling debits for example.

Remember in law 'ignorance of contractual liability' is not a get out of gaol card. The Bank may argue she signed up to terms and needed to be fully able to discharge her respnsibilites under them.

Good luck

MagicCats

The default will drop off her file at the six year point anyway which will help. In the meantime you can SAR Barclays which basically involves writing to them with a £10 fee included and they will disclose all info held on your OH. I've never done it, but plenty of guides around to help.That info should help you contest the charges and therefore the default.

There are people who state that despite defaults dropping off your file(s) at the six year point the banks still know about them. Other that the bank who issued the default keeping note of it, I don't know how true this actually is.

Good luck.