Mortgane declined - not sure what to do

missyp284

Hi, I'm a fist time buyer and have had my mortgage application declined.
I've checked my experian credit report and it all looks fine to me. I have a credit score of 961 and a rating of 'excellent'

All the lender would tell me was I failed the application due to a low credit scoring. I can;t understand this.

Can anyone give me any advise on what I can do now? :mad:

Conrad

What size deposit?

What is house price?

Your job title?

How long in job?

Income?

Debts?

How many address' in last 3 yrs and how long at each?

Did you give work and home landline numbers?

Your age?

Dave_Ham

Usually a low score would indicate hardly any credit lines to refer to, although they may just be being polite and may be a credit score fail.

Forget the credit "score" it is the content that is important the number is irrelevant.

Get your Experian, Equifax and Call Credit.

Which lender has declined you so far?

kingstreet

There are plenty of things which go into your lender's credit score which Experian knows nothing about, as it does not ask. Conrad has mentioned many of them by asking the questions the lender asks.

As Dave said, get copies of all three of your statutory credit files and stop paying good money for pointless "scores" which ultimately mean nothing;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/gb_consumerletter.ehtml

Experian

https://secure.wiseconsumer.uk.experian.com/wiseconsumer/secure_index.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=register_display&tpl=regPurchase

missyp284

Conrad wrote: »

What size deposit?

What is house price?

Your job title?

How long in job?

Income?

Debts?

How many address' in last 3 yrs and how long at each?

Did you give work and home landline numbers?

Your age?

Thanks for the replies everyone.

In answer to Conrads questions:-

What size deposit? - The house I was after was new build so I was going for the NewBuy scheme....5% deposit.

What is house price? - £173,000.00

Your job title? - I'm a Senior Buyer

How long in job? - I'm starting a new job 3rd December

Income? - £38k

Debts? - none

How many address' in last 3 yrs and how long at each? - 2, my current one oly 6 months, the one before 6 years.

Did you give work and home landline numbers? - yes

Your age? - 41

I've got my Experian and Equifax reports, CallCredit keeps craching so I can't get that at the moment. I haven't paid for any of them, so I'm certainly not wasting any money there.

I've been declined by Halifax, Woolwich and Nationwide. Aldermore did accept me, but only on condition that I had completed the probationary period in me new job, which would be February. The house they accepted me on had a completion date of December so that means I couldn't go through with that.
I found another house with a completion date of April, with a different developer but apparently I can't use Aldemore with this developer.

kingstreet

At 95% you'll need a perfect record. The demand for such products well outstrips supply, so the lenders turn up the score they require to ensure they get only the best possible borrowers.

The 4.3 x income, address, job situation and three credit searches won't be helping.

Did you tell these lenders you would be changing jobs, or are you trying to get a mortgage without a job at the moment, based on you starting a job in December?

missyp284

kingstreet wrote: »

At 95% you'll need a perfect record. The demand for such products well outstrips supply, so the lenders turn up the score they require to ensure they get only the best possible borrowers.

The 4.3 x income, address, job situation and three credit searches won't be helping.

Did you tell these lenders you would be changing jobs, or are you trying to get a mortgage without a job at the moment, based on you starting a job in December?

oh no, I have a job already I'm just starting a new job in December. I told them I was moving to a new job though, I had to as it's in a different area.

I relocated 6 months ago to the job I'm in now, and due to personal/family reasons I'm moving back home, and luckily straight into another job. So there is continuity of employment.

kingstreet

I can only suggest you put the purchase off until you've been in your new position for a few months. Any more speculative credit searches are going to be harmful if you aren't accepted and I have my doubts that you will be accepted.

You've worked your way through the bulk of the Newbuy lenders. Off the top of my head, there's only Santander and NatWest left and there are restrictions on the builders accepted by them.

missyp284

Thanks Kingstreet.

I bank with Natwest, and have a credit card with them. Would that work in my favour at all?

I think you're right about maybe waiting for a few months. I was just worried that it was something beyond my control which might not change in that time. If it's just going to be down to something like the time in my job then at least theres light at the end of the tunnnel.

kingstreet

TBH there's little way of establishing an exact reason. That means making speculative applications and risking further declines, with further wasted credit searches clogging your credit file.

Can't tell you if NatWest is any more likely to lend to you. AFAIK NatWest Newbuy isn't available via intermediaries, so no experience I'm afraid.

missyp284

I think thats whats so frustrating, you don't get to know why you're declined so you don't really know what you should, or could do to make it right. Or what in fact your best next move should be.
I've never been much of a gambler so this is like hell for me lol.

I've no idea what to do now as I've nowhere to live when I move back. The rental market is horrendous and I really want to avoid getting bogged down into that 6 month cycle again if I can help it. I'll be staying mith my mum initially (oh joy!!) so looks like I might have to suck it up and stay there for a few months, then if I've still no joy face facts and go back to renting.

How long do the credit searches usually stay on your file?