Mortgage Application Declined

JoelsDad_2

Hi all,

I am currently in the process of part exchanging our home for a new build. We are looking at taking advantage of the Newbuy scheme.

We spotted the house and made preliminary enquires over Christmas.

I then spoke to the builders own mortgage advisor who punched our details into his calculator and confirmed that we should in theory be able to get a mortgage.

Our broker opted to apply with the Nationwide. I asked for something in paper but was assured we wouldn't need one. We'd be fine.

I had my own concerns about my experian report, nothing major but was worried about the timing. I've nothing to hide but did have an overdraft with Barclays for £600 that had been maxed out for a few months and £425 on my credit card. I paid both of these off plus a few other smaller things on the 12th Jan.

However my experian report updated on the 13th before the payments cleared. I wondered if this would be a problem and whether we should wait. At this point my score was good (I flick between excellent and good every month).

Anyway, the application went through and two weeks later we were declined.

I have spoken to experian and they told me that it is in fact the overdraft and the credit card that show as negatives. I reduced my credit card limit from £3k to £500 a few years back as I thought this was the right thing to do. Sensible management. Turns out it was a bad move.

I have spoken to the Nationwide and they said we were high risk, and they suggested it was my available credit, so again the credit card.

The Nationwide performed two searches on my file yesterday and my score dropped to fair. How experian can instantly update a negative but only update positives once a month is beyond me.

The Nationwide do use the experian score. I've been told this by them.

Where does this leave me now, realistically?.

The builders have now sold our house too.

Meeting with the Halifax on Monday.

Any help would be great.

droiderm

Are you sure they use that score ?
I doubt it. They may search that credit file.

Ignore that score its meaningless. But is there anything negative at all on there ?

JoelsDad_2

So I was told by two Nationwide employees.

I've sifted through my file over and over and it just looks out of date.

However, I have it in front of me again now and I have two 'one month late payments' on my file. One for O2 from October 2007 and another for something I don't recognise in 2009.

The O2 I remember was me cutting my direct debit a day before my contract ended.

Surely these couldn't be affecting me now, your talking two £20 payments.

droiderm

Do any of them have default dates ?

JoelsDad_2

I must also add that according to experian my total outstanding debt hasn't changed in eight months and I've only ever been using 20% of my available credit. This just isn't right.

Do lenders really base their research on these files? Like I said they only update once a month.

I pay £15 a month at the minute to monitor my file but it only updates with negative information.

It just isn't right.

JoelsDad_2

No dates given, just highlighted orange. Up to one month late.

They were certainly paid as soon as I was aware.

Thrugelmir

JoelsDad wrote: »

I pay £15 a month at the minute to monitor my file but it only updates with negative information.

Waste of money. Save it instead.

JoelsDad_2

No public record information records on file.
No CIFAS records on file.
No GAIN records on file.

Could it be a case of bad timing for me when the application went in?

droiderm

I personally think that having 1000 of debt on the file , out of date or not on there will make no difference. Any pay day loans ? Cash advances on credit cards ?

JoelsDad_2

Thrugelmir wrote: »

Waste of money. Save it instead.

Is it really a waste?.

I feel like I need something like this just to keep a check on things. Although it should update daily :mad:

JoelsDad_2

No pay day loans, no cash advances. Nothing like that.

I have steadily paid all of my debts off sensibly and have managed my money well IMO with no charges applied to any of my accounts.

How much will decreasing my credit card limit affect me?