Mortgage Rejected...

mforcer

So I applied for a mortgage everything was going ok, got a call off the under writer today and after further checks on my credit report they wont be able to offer me a mortgage due to an outstanding debt from a previous address.

If I know what the debt is then it was from over 5 years a go and I've had credit since then no problems and i've never missed a payment on any bill since this debt i'm thinking of.

I asked if i get the debt paid will i be able to continue and she said it would stay on my report for a few years so no... so does this mean i'll never get a mortgage? is there any way at all to clear it off?

Where does this leave me? If i apply to other banks will this have an adverse affect on my credit rating? If i'm rejected from one bank does this mean i'll be rejected from all?

I've had credit with barclays finance twice with no issues.

Any suggestions? Do i have any hope?

We were originally going through the estate agents mortgage advisor but we cancelled and decided to apply alone to save money, when i called to cancel our appoint with the advisor i said i was worried we would lose too much money if we were declined and she said ''..but you have definitely been accepted".. is it worth going back to her? or was she just trying to keep.

mforcer

oh and it was with HSBC

opinions4u

See a broker.

But not a mortgage adviser working for an estate agent with a vested interest in the deal.

HSBC are just about the pickiest of all lenders.

Taadaa

Yes you probably could still get a mortgage with a broker. You need to explain the problem. However it is likely you will have a higher than average interest rate as a result of hte debt.

Thrugelmir

Have you determined what the debt is?

mforcer

Yeah after googling it looks like HSBC are one of the hardest which is just my luck.

What is a broker? So I shouldn't go back to the advisor in the estate agents?

Thrugelmir

mforcer wrote: »

Yeah after googling it looks like HSBC are one of the hardest which is just my luck.

The unpaid debt is your problem not the lender. As the account is in default. At worst a CCJ has been issued.

mforcer

Thrugelmir wrote: »

The unpaid debt is your problem not the lender. As the account is in default. At worst a CCJ has been issued.

I am aware of that, thanks.

mforcer

I've signed up to Experian and i can't see any debt 'from a previous address' as the under writer said. How can the bank see something that i can't?

My score is 'fair'

One point that confuses me is that it says since my credit card has a low limit (£1000) this tells lenders how much the bank has entrusted me with, and since it's so low i'm viewed as a high risk... this is confusing because i only got the credit card to boost my rating in the first place, i set the limit i could of had higher if i wanted.

Is it worth me increasing my CC limit or is this a bad idea when applying for a mortgage?

[edit] i've checked Equifax and there is nothing on there either, although it wants a fiver off me to see my score.

[edit] i paid the fee to Equifax and my score is in the green, all points are either good or excellent and there is no debt from a previous address, the only point that is fair is because i haven't been registered on the electoral role for more than 2 years at current address.

It does say i'm financially linked to my dad, im not sure if he's had a debt that could effect me?

Mishomeister

mforcer wrote: »

I've signed up to Experian and i can't see any debt 'from a previous address' as the under writer said. How can the bank see something that i can't?

My score is 'fair'

One point that confuses me is that it says since my credit card has a low limit (£1000) this tells lenders how much the bank has entrusted me with, and since it's so low i'm viewed as a high risk... this is confusing because i only got the credit card to boost my rating in the first place, i set the limit i could of had higher if i wanted.

Is it worth me increasing my CC limit or is this a bad idea when applying for a mortgage?

[edit] i've checked Equifax and there is nothing on there either, although it wants a fiver off me to see my score.

[edit] i paid the fee to Equifax and my score is in the green, all points are either good or excellent and there is no debt from a previous address, the only point that is fair is because i haven't been registered on the electoral role for more than 2 years at current address.

It does say i'm financially linked to my dad, im not sure if he's had a debt that could effect me?

So the last one for you to check now is CallCredit. Google the word noddle and you can get the report for free of them

pdej4

Ignore the credit scores. They are meaningless as each lender decides on its own scoring system as to how they rate you.

With regard to your outstanding debt, it could be something really simple, but until you check call it as well you won't know. About 6years ago we were trying to rent a new place and the agency said we'd failed the credit check. We were shocked as although we had car loans and a cc or two as far as we were aware we were clean as they come.

We later found found out my other half had a ccj incorrectly assigned to her by the dvla for not paying car tx on a car she had completed SORN details for. We resolved it and it was removed from her credit file. It just depends what it is.

A broker is the same as an advisor. You want to try to find an independent financial advisor or mortgage broker, and always one that will act with your best interest, not the estate agents. Same with your solicitor or conveyances. Trust me, see my recent post, if you can get a recommendation for one from people you know in the area you will likely get a better service too! Good luck.