what has suddeny changed.

hungary97_2

Spoke on the phone to big bank who i currently have 98000 mortgage with about getting new mortgage went through AIP and was turned down due to credit report (was told they deal with experian).

Downloaded credit report with Experian and only bad point on it is CCJ unsatified from 2002 left with £33 to pay and a default for £33. I was led to believe that i had already paid this but to clear up report have now paid this off today. Only other thing was that current address was not shown on report again have amended this.

What i dont currently understand is that this amount was present when i originally took mortgage with them so why is it an issue now. Have a meeting with branch on Friday as have been told they look at things differently. Can the fact that i have claimed back my cank charges of affected this!

Eqifax report does have new CCJ on for £875 which i am about to settle.

Any ideas or options would be handy Currently will have £20000 deposit looking to borrow between £130K to 150K earning 30K.

Thanks

MortgageMamma

Hi Hungary97

Dont waste anymore time with the bank that turned you down, branches have the same lending criteria as call centres and will just credit check you again which will damage your credit rating. which bank is it?

I dont think claiming back bank charges will have anything to do with it

With regards to what has changed, your bank/lender may well have just tightened their lending criteria from when you first took the mortgage, or they may have checked equifax and spotted the CCJ - if its a recent one that would explain the decline

My advice to you would be stop trying to get a mortgage direct, you have a small amount of adverse credit and as some is quite recent most high street lenders would reject you. Speak to a professional mortgage broker who will know which lender will accept you, find you the cheapest deal and get you back on the right tracks.

MortgageMamma

Mr_helpful

A new CCJ for 875 might be the bit thats changed

dunstonh

A new CCJ and one old one. Thats not a good record. Claiming back bank charges shouldnt make much of a difference but in reality, they are less likely to push their lending criteria out.

I have a few contacts with bank staff and one of them said that they know who has claimed charges back and they have tightened up their lending decisions with them. That was about overdrafts and non credit scored loans but it could apply to mortgages.

blisteringblue

dunstonh wrote: »

I have a few contacts with bank staff and one of them said that they know who has claimed charges back and they have tightened up their lending decisions with them. That was about overdrafts and non credit scored loans but it could apply to mortgages.

Are you hinting there is an unofficial scoring system between banks then about those reclaiming charges as that cannot be legal in any shape or form, or just they have tightened their own lending with their own customers that have reclaimed charges?

AndrewSmith

Either way it is not proveable.

A lender reserves the right to refuse or decline a mortgage or loan for any reason without explanation.

If you think about it, it is believable for them to only apply the basic standard underwriting criteria to a customer of theirs who has in the past reclaimed bank charges.

Exceeding criteria, indeed any loan or mortgage agreement is not a given right after all. They have no obligation to agree to lend anything at all.

absolutebounder

Good on them I say. Why would a bank want to deal with a moaning minnie who is likely to complain at every opportunity causing them hassle and extra cost. I wouldnt lend to someone if I had to watch my back for the next 25 yrs

dunstonh

If credit scored ok or criteria is within published information then there is no problems. However, if it requires a manager to overule a failed credit scored application or bend the criteria to allow lending to take place, then if you have reclaimed charges, they will not bend as far. The guy was saying that its typically people with poor quality lending histories that are reclaiming the charges and if they are after increased terms, they are less likely to get it.

There is nothing really new in that. I used to be a lending manager for a bank and if you had someone that was not a straight forward lending case and it required you to overule the credit score or give an overdraft facility, then the relationship between that person and the bank did come into play. Troublemakers would typically be more likely to be rejected.

There is nothing illegal in that. You wont hear anyone say "its because you claimed charges back" but expect to hear failed to meet criteria or failed credit score to be mentioned.

As the FSA says, the banks can choose whether they can lend you the money or not. It is not a right you have.

hungary97_2

I do object to being called a moaning minne

unfortunately in 2002 i managed to get myself into a lot of debt due to being made redundant and then being made homeless as my mother became terminally ill and the house had to be sold. I have worked hard to get myself clear of debt and this recent CCJ was due to the water board losing letters and then myself missing the defence deadline as i had to suddenly go away for a few weeks. this outstanding amount is being settled this week. The bank charges spiralled due to my situatation and the need to eat. Without the excessive charges applied i would not have got myself in so much debt and therefore would have been free of it for longer.

This large four letter bank has told me that they will probably lend me the required amount once the CCJ is settled does that seem feasiable with all your knowledge.

Thanks for the constructive replies.

blisteringblue

AndrewSmith wrote: »

Either way it is not proveable.

A lender reserves the right to refuse or decline a mortgage or loan for any reason without explanation.

If you think about it, it is believable for them to only apply the basic standard underwriting criteria to a customer of theirs who has in the past reclaimed bank charges.

Exceeding criteria, indeed any loan or mortgage agreement is not a given right after all. They have no obligation to agree to lend anything at all.

Makes you think though, and I guess you are right. I am split on reclaiming charges as I've always conducted my accounts properly and it is being exploited by too many people who knew exactly what they were doing and were very gung ho with their finances. I do though feel for those that only went slightly over their limits and got charges.

It is an interesting debate for another forum and I don't want to hijack the thread so will leave it there.

Rick62

Hi Hungary, you say your credit record is fine apart from the 2 CCJs, but then you talk about the debt you got into and the consequent charges. These too will impact on your credit record.

Unfortunately banks are not charities, however understandable your situation they are not really interested, what they are interested in is will they get their money back on time and without hassle.

If they have said they may lend once your CCJ is settled that is a good start. Also if you visit your local branch and can convince them your debt problems were a one off and everything is now under control that may help.