Mortgage - Credit Check Failed

PlatinumConsultant

I recently tried to carry out a transfer of equity on my Nationwide mortgage to get the property in my name only. However as part of the process they carried out a credit check which I failed. Apparently it wasn't to do with the amount of loans/credit card debt I have outstanding as this would have flagged up with a different message.

After checking my Experian credit report there were no obvious issues why I should fail, i.e. no missed payments cjj's or anything like that. So why would I have failed? How can I find out the reason why?

lee111s

You may be requesting to borrow too much?

How much are you wanting to borrow? How much do you earn? What other outstanding debts do you have? Any dependants?

Wh05apk

Try speaking to them, they should be able to at least give you an indication, although I suspect that this is purely down to the credit "score" system you use, maybe you just don't fit their desired client base this week!

I put one through a while ago with Nationwide, they kept coming bac for more and more info, in the end they declined it due to financial association with her Ex, as he would still be paying maintenance, I placed it with Halifax, although not such a good deal, it was offered within 3 hours of placing the application - no proof of income required, desktop survey done.

Experian_company_representative

As the previous moneysaver said, press the lender for an answer. They should at least be able to give you the principle reason for saying no. If they cite credit scoring then you can use your rights under the Data Protection Act and ask for a manual review. That should hopefully help you uncover the issue - if there is one. Sometimes it's simply down to the overall picture your credit score paints of your situation, rather than any one particular issue. Certainly worth exploring though.

James Jones

Simon_gloster

I have to say lenders do not have to give a reason for decline.

In some cases it's for fraud cases therefore tipping off why it's declined is kept with the lender.

Just failing an application is the norm. 000's of calculations and formulae are used to produce and overall score and lending amount. If brokers etc were given this info they would look at ways of getting around it....wouldn't you all? :-)

Most lenders have 3rd party architects to code the systems therefore I sympathise with people who are bullied into giving a reason for a decline when they genuinely have no idea why it hasn't gone through.

Admittedly answers can be given for those with adverse or less income, but those thinking it's a gimme as I have a £1m a year job and 999 score can think again.

Dave_Ham

The Nationwide credit profiling is currently coming down harder on clients with above average unsecured debt.

Sounds from your OP that you may have a fair bit and that will be the reason for the decline..

There are other lenders, depending what product and details you have of course.

Good luck

Thrugelmir

PlatinumConsultant wrote: »

However as part of the process they carried out a credit check which I failed.

A lender will "credit score" in terms of credit history, affordability etc etc. If you do not meet their criteria for a given product then you will be declined.