First time buyer - help needed!

dustyspringboard

Any help here would be greatly appreciated
This morning I applied for a mortgage with Nationwide via a mortgage broker. Unfortunately, my application was declined and I was advised to check my credit score. I did that this afternoon with Experian and my credit score is 'good' with no negative indicators. I called Nationwide to find out why my application was declined and was told that it was due to a low credit score using their own internal scoring system. Also, as I had applied for a 90% mortgage (property value £105,000), they deemed me to be too high a risk.
There are other lenders offering 90% mortgages and so I would like to apply to one of them. Can anyone recommend one? Also, I'm concerned as to how long I should leave it before applying - would this declined application have an adverse effect on future applications?

Dave_Ham

Hi there,

Too many applications in a short period of time will affect your computerised credit score, although a couple will not make a huge dent.

Your credit files provided by Experian, Equifax and Call Credit are extremely important, although the scores and commentary they provide is worthless.

I would suggest you obtain a copy of your Experian, Equifax and Call Credit files and then get them to a recommended broker.

I suspect the use of Nationwide would suggest an Estate Agent broker, although a decent broker would certainly have asked for credit files before now.

There are 90% products out there, although whether they are attainable will depend upon the details of your situation.

Best of luck

ACG

Your advisor could help you.

To be able to recommend a product is a regulated industry, people on here can tell you who they have applied to but that will have no baring on your application.

I would go back to your broker and see what he suggests or find another if your not comfortable with him. At 90% it can be quite tough but if you have no missed/late payments it shouldnt be getting declined.

Are you on the electoral roll? Have you ever had any bad credit with nationwide (even if it was 10 years ago?).

Its difficult without knowing your circumstances but it could be that your just scraping through on affordability which combined with 90% and maybe an average score - is something theyre not happy to do.

I would speak to your/a broker with your credit reports (equifax, experian, call credit).

kingstreet

Has a search actually been done?

Sometimes, if Nationwide kick a case as being too risky, they do so before a credit search is carried out.

dustyspringboard

Thanks for your comments so far.
When the mortgage advisor spoke to Nationwide, she was told that the application wasn't declined on the basis of affordability. I then checked my credit report with Experian and double checked on the phone with one of their advisors - no problems with the electoral roll. Also, I have no late/missed payments and no outstanding debts. When I spoke to Nationwide, I was told I was 'high risk'. Although I pointed out that I'm a teacher at the top of the pay scale in a permanent post, the advisor explained that it was the 90% of the £105,000 property price that was the risk. Unfortunately, she was unable to give me an amount that would be considered less risky.
Anyway, it seems that there is a problem with Nationwide that I can't fix unless I can find more money for a deposit. I'll get back in touch with the broker and see if I can apply elsewhere.

BMW1981

Are you buying a new build property?

dustyspringboard

I was hoping to put in an offer for a new build property (built 2002) although I don't think the mortgage broker needed to put that on the initial application.

Bufger

Its not a new build if it was built 11 years ago.

Top of teachers salary being £34k? Then you're ok with affordability. Dont listen to what the credit scores actually are you need to look into the individual reports. Its worth ordering them from Experian, Equifax and Call Credit. When you have them circle any late payments, defaults, people you're financially tied with (even without you knowing sometimes). I found out last year I was financially linked to my mother still 10 years after I moved out of the family home, luckilly she's always been good with credit but being financially linked to someone with bad credit will hinder your chances.

dustyspringboard

Once again, thanks for your comments.
BMW1981 / Bufger: I thought you meant new build as in a new flat rather than the many old tenement flats here in Edinburgh.
Bufger: I have my report from Experian - my score is 999, which I think is the highest you can get. There are no late payments and no negative factors on the report. The only thing I can think of that would go against me is that I have a few credit cards, although all have a zero balance. I do use one at least once a month but always pay it off in full. However, one credit card which I haven't used for a long time has a credit limit of £14,000. After I paid it off, the credit card company just kept on increasing my limit, I think as an incentive to get me to use it again. I've now emailed them to get them to decrease this 'available' credit. To be honest, I am completely baffled as to why my application was declined. The mortgage broker I've been using is going to apply to a different lender, who carries out a 'soft search', and also appeal against Nationwide's decision so I guess I'll need to wait and see.