Mortgage refused, credit scoring, help.

RobHolyhead

Hi all,

Me and my wife have just had a mortgage refused despite passing all affordability tests, the reason is stared as credit score failure and offers some examples as to why, none of which apply to me or my wife!

I know companies don't give a real reason but it creates a catch 22 situation where me and my wife have no idea whats wrong and as such cannot rectify the issue before we appeal or re apply in a few months time, if we re apply and are turned down again it will reek havoc on our credit files.

My wife has no late payment or blemishes what so ever on her credit file and I only have one in the past 12 months which was for a returned direct debit not a late payment.

Can we request an in depth explanation of our refusal under the freedom of information act?

Thanks

Rob

Thrugelmir

RobHolyhead wrote: »

Can we request an in depth explanation of our refusal under the freedom of information act?

No, as lending is a commercial decision. Many times there's no single one reason for a decline. Other than you don't meet the lenders criteria at that point in time.

RobHolyhead

Thanks,

Is there anything we can do?

Thrugelmir

RobHolyhead wrote: »

Thanks,

Is there anything we can do?

Speak to a local broker. Discuss with them your personal information and allow them to peruse your credit reports' Then they might be able to suggest possible lenders and options.

ACG

Have you actually checked your credit report with the agency your chosen lender uses?
There is experian, equifax and call credit. Different lenders use different agencies.
What LTV are we talking? If its 90-95% then 1 late payment/refused payment may be all it takes... effectively you didnt have enough money in your bank to cover a payment (in the eyes of the lender).

Might be worth going via a broker though.

RobHolyhead

We both have access to our credit reports, and its the 95% mortgage that Newcastle Building Society are offering, we were sent their by a broker as he felt it would be out best opportunity only having a small deposit.

As we use a "service account" for our bills there is always enough money in there to cover our monthly bills, i get paid weekly and put so much of my wages in to the account every week.

as for the late payment it was unfortunate timing as the TV Licensing tried to take their direct debit the a few days earlier than normal and the money wasn't there (if they took it on the date agreed it would have been) because i put the required amount in per month I never considered there being a problem. I have since considered an overdraft on the account to make sure the problem doesn't arise again.

are the past 12 months more vital than past history as the late mark for this transaction is only a month or so away from dropping off my 12 month record. obviously it will stick around for another 4 years on my older records.

bigadaj

The answer is to keep saving, higher deposit means that credit file is less critical.

Thrugelmir

RobHolyhead wrote: »

I have since considered an overdraft on the account to make sure the problem doesn't arise again.

Leave an amount to act as a buffer in the account.

ACG

95% mortgages you have to be whiter than white. Any sort of missed or late payment is going to make it bery difficult.

samtoby

Go to a broker before you do anymore searches.