Declined by Halifax

vicedemon80

Hi everyone, I'm new to this so please go easy on me.

Husband and I would like to move house, we have approx £50k equity in our present home, a mortgage of £110 outstanding and would like to purchase a house at approx £220. This works out as somewhere between 15% and 20% deposit. Household income of £50k. We went through a broker who suggested we go to the Halifax - he organised it all for us and then phioned to say we had been declined, just computer said no. He now suggests we try Natwest but if they decline us he can't do anything more. We've checked our credit on Experian I rate 999 and hubby rates 990. We do have two negative due to mobile phone problems but these were satisfied in 2007 so are due to drop off this year. I suppose my problem is that I just don't know what to do for the best. Should I go to a different broker - we are in Scotland - or do I try Natwest with him, or should I go to Halifax direct to ask why as this might help with future applications, or do I try my own bank as they know my financial history better? Thank you for any advice. All greatly received.

Thrugelmir

Do you owe much unsecured debt currently ? i.e. credit cards, personal loans, overdrafts.

vicedemon80

Hi, I don't believe so. We currently have a loan which is for just under £10k which was used to clear the credit card and another loan.

Experian_company_representative

Don't accept 'computer says no'. The lender should be able to give you the principle reason for refusing your application, which should give you some clues.

I would warn against applying to another lender until you have done this as you could inadvertently make the situation worse by collecting several credit application footprints. While these don't show the outcome, so won't say 'declined' or anything like that, they still don't look good.

James Jones

Thrugelmir

£10k is a significant enough sum. Particularly if it was to consolidate other debts. Also would wipe 20% off your available equity.

Were your total debts are a higher level than this in the past 6 years.

vicedemon80

Yes debts have been higher in the past but never missed a payment and have been working hard to reduce what we owe so we could get a bigger mortgage. According to credit report I'm only using 1% of my available credit.

Thrugelmir

Experian_company_representative wrote: »

Don't accept 'computer says no'. The lender should be able to give you the principle reason for refusing your application, which should give you some clues.

Lenders are under no obligation to disclose.

They will merely refer the borrower back to the CRA's who collect the data they score on.

Problem for borrowers is that Experian's consumer score has little to no commercial value. In fact it is misleading. A case for mis-selling perhaps?

vicedemon80

We've now found out what the problem is. There is a CCJ on my hubbies credit report, which we belive shouldn't be there, we owed the factoring agency money but we paid up before going to court and it has been settled. So need to make contact with various peeps to have this removed. Does anyone know how long it can take for is report to be cleaned. For note the amount was under £200 and dates back to 2011.

Cheers

holly_hobby

No, T.s has it correct, the lender DOES NOT have to give you any reason for their decline.

You need to contact the registering court to get the CCJ issue addressed.

How long will it take ... depends how long the court takes to check the incorrect registration and administer the change, and how quickly the likes of experian et al, actually up date their records. (although confirmation from the court should suffice for lenders (whilst you await CRA to correct their records. Although some lenders despite the court confirmation, will want a revised credit check to come back clean.

Hope this helps

Holly

Thrugelmir

vicedemon80 wrote: »

We've now found out what the problem is. There is a CCJ on my hubbies credit report, which we belive shouldn't be there, we owed the factoring agency money but we paid up before going to court and it has been settled. So need to make contact with various peeps to have this removed. Does anyone know how long it can take for is report to be cleaned. For note the amount was under £200 and dates back to 2011.

Cheers

What action did you take take when you received the court papers. Did you file a defence?

Failure to respond will mean that the Court has no alternative other than to issue the CCJ if it is satisfied that the correct procedures have been followed.

There's no turning the clock back after the event.

holly_hobby

If you didn't file a defence, then the petitioner can ask for judgement in its absence - when you received the POC what did you do ?

Did you acknowledge and defend.

Did you acknowledge but submitted no defence

Did you do neither of the above ?

Holly