Mortgate application declined - advice needed please.

Svalbaard

Hi everyone. I'm sure this question has been raised before but I thought I'd ask it for advice:

Have just (two months or so ago) moved out of my current property which has a short consent to let in place with my current mortgage provider - and have just spent an hour on the phone to Northern Rock regarding switching the house to a BTL with them with a very favourable LTV and more than the required amount of rent coming in through the tenant via a managed rental agency - so no problems there apparently.

I have a very good income and work history, and a 999 credit score from Experian - which is the credit agency that Northern Rock say they use during the application / decision in principle process.

Low and behold then that they come back and tell me that the application has been declined - but apparently cannot divulge to me as to why. So I instantly logged onto Experian and yes - my credit score is still at 999 with no issues, so am now baffled as to why I would have been declined by them in this instance...

So was really just canvassing to see if (A) anyone else has been left in this position, (B) is there anything I can do to find out why I have been declined in more detail?

I'll give Experian a call regardless to discuss as I now may have a "declined" footprint on my credit record which might be annoying.

Anyway, many thanks in advance for any constructive responses.

antonic

Ignore the credit score, its as usefull as a chocolate fireguard.

You need to be checking your credit history to see if you have a ny defaults/late payment markers on there, if you do that could explain why it was declined.

Hope this helps.

Svalbaard

Thanks Antonic, done that. None whatsoever.

kingstreet

The lender's credit score relies on a lot more than the information lodged by credit reference agencies. That's why there's a thread on here titled "999 and declined."

Things like time in current job, time with bank, time at current address, loan to value, telephone numbers, in fact too many issues to mention all contribute to the score the lender sets as its minimum.

If they don't want your business, find a lender that does. In my experience, High Street lenders are often a poor source of BTL finance, with specialists being far better geared-up to understand that market.

Thrugelmir

Svalbaard wrote: »

is there anything I can do to find out why I have been declined in more detail?

Lenders do not have to give a reason for a decline. In essence they do not want your business.

Lenders use the data provided by the credit agencies along with information you provide on the application form to calculate their own rating. Each mortgage product they offer will have its own rating that applicants need to exceed to be considered.

The rating on the mortgage products can be changed at any time time. Depending on whether the lender is looking to underwrite this business at a given point of time. In essence highering or lowering the bar.

Dave_Ham

Lenders will tell you and NR definitely, so it was either a credit score fail or a policy decline.

If your credit score failed, you need to understand why. Associate or linked addresses, recent missed payments etc.

If it is policy, maybe you are not old enough, do not earn enough, the property itself is outside criteria etc.

If they will not tell you a reason and have declined it can only be one of 2 reasons (if not above)

1 Human error - this happens a lot, you get the new advisor who is inexperienced and made a boo boo.

2 You are on the very naughty list. Proceeds of crime, previous fraudulent activity, frozen assets

There will be a reason. NR are not the only ones doing competitive buy to lets though....