High experian score but mortgage refused

Bidges

Hi all,

My partner has a high credit score 950 on experian but was refused any mortgage from his bank, LloydsTSB.
The guy he saw didn't do a full credit check, just went on to experian to get an initial view.
The bank said he could have a loan of repayments up to £490 per month but wouldn't offer a mortgage?!?
He was only looking for a 75% mortgage on a £120k house.
He has no bad credit and is registered on the electoral roll.

The bank has advised that on their risk scale of 1-9 he is a 1 (lowest risk) but can't advise why he has been rejected. The guys exact words were "I have no idea why you can't get a mortgage with us".

He is self employed, has been for over 5 years and his books show healthy profit year on year and his salary is £20k. His business also banks with LloydsTSB.

What would you suggest?

dotdash79

Maybe because he is trying to borrow 4.5 times his income and thats outside Llodys lending criteria

Experian_company_representative

The credit report (and score) is just part of the picture. Sounds like your partner has an excellent credit history but other factors are coming into play here. See this Q&A. They really should be able to tell him what the issue is.

James

Bidges

Ah right, it's surprising that the bank wouldn't inform him of that.

Would you suggest using an independent mortgage advisor to assess options?

Road_Hog

Bidges wrote: »

Ah right, it's surprising that the bank wouldn't inform him of that.

Would you suggest using an independent mortgage advisor to assess options?

Yes.......

dotdash79

Have a play around on the mortgage calculator, but remember self employed are treated differently

http://www.lloydstsb.com/mortgages/borrowing-calculator.asp?WT.ac=PSMBC1

ValHaller

Bidges wrote: »

Ah right, it's surprising that the bank wouldn't inform him of that.

Would you suggest using an independent mortgage advisor to assess options?

Something slightly odd here. He is good for a loan with a repayment of £490/month. But he cannot get a mortgage which at 4% over 25 years comes in at £480/month. Nor any mortgage at all. Perhaps being selfemployed on £20,000 he is not eligible for a Lloyd's mortgage?

I suggest seeing a broker

Thrugelmir

Bidges wrote: »

Ah right, it's surprising that the bank wouldn't inform him of that.

The individual processing the application won't know the precise reason. As the system itself is progrmammed with certain parameters.

wannahouse

dotdash79 wrote: »

Maybe because he is trying to borrow 4.5 times his income and thats outside Llodys lending criteria

Lloyd's lend up to 5x for people with an excellent credit score, so i don't think thats true!
I know, because we also bank with lloyd's ,and have been offered a mortgage of 5x income in our circumstances (but my dh earns alot more than £20,000,so don't know whether thats a factor, as there's more disposable income)

mandyy

lloyds tsb is my bank. they said i had the best credit rating you could get but, would only lend me half of my mortgage. was only borrowing 47% of the value. the mortgage would only be 1.5x my income. went to nationwide and got one at a better rate than my own bank had i got a mortgage with them. try nationwide. there system is a bit screwed up but, seem to be good