Remortgage/Skipton

Rocket1971

Just wondering if anyone can advise:
We are coming to the end of our 2 year fixed rate deal with Santander and my FA is looking at our options.
Skipton currently offering 2.09% fixed rate.
My Credit Score is 927 with one credit showing as a default 18 months ago but was settled in full 2 months later.
It also shows that I am NOT on the Electoral register which I find odd as I signed up to the postal vote system last year and voted?
My Husband's score is 999 and all credit cards (2 of them totaling £3.8K satisfactory but not paid off) apart from this a perfect credit record.
When we moved into this property in January 2012 I owed £20K on credit cards which now stands at £10.5K we have £92K equity on a house valued at £330K.
The skipton declined us due to credit score but could it be due to the fact that only me is showing as not on electoral register?
Santander were throwing credit cards and all sorts at us so slightly confused and annoyed as the Skipton rate would have reduced our monthly payments by £140.00 per month :mad:
any advise or if you have had similar situation please do let me know.

Senior_Paper_Monitor

First lesson here is that Credit Agency (Experian ?) scores are worthless. The score that counts is the one that the lender calculates using the Credit Agency data and other information.

What is your bank overdraft history ( a big issue with Skipton) ?

Your level of credit card borrowing (against income ?) will have been an issue.

What is the size of the default (Skiptons critera inc max £500 limit on any default within 3 years) ?

Electoral role won't help (from memory quite a big score item on Skipton).

What LTV / what income multiple ?

Thrugelmir

Rocket1971 wrote: »

Santander were throwing credit cards and all sorts at us so slightly confused and annoyed as the Skipton rate would have reduced our monthly payments by £140.00 per month :mad:

Much as changed in the past 18 months. Underwriting criteria has tightened down and lenders are having to comply with responsible lending rules. To obtain a better mortgage you need to continue to get control of your debt with over £14k owing. Lenders have no need to take any risks. If anything they are looking to widen margins, so that the rate charged covers the potential risk.

Rocket1971

Senior_Paper_Monitor wrote: »

First lesson here is that Credit Agency (Experian ?) scores are worthless. The score that counts is the one that the lender calculates using the Credit Agency data and other information.

What is your bank overdraft history ( a big issue with Skipton) ?

Your level of credit card borrowing (against income ?) will have been an issue.

What is the size of the default (Skiptons critera inc max £500 limit on any default within 3 years) ?

Electoral role won't help (from memory quite a big score item on Skipton).

What LTV / what income multiple ?

We both have an overdraft facility that we use (separate accounts) but it is then cleared at month end


My earnings £35k + bonus of 19% of salary once a year


OH £21.5k per year


I asked natwest to reduce my monthly payment short term they automatically defaulted me but maintained payment plan and paid off in full. The amount owed at time of default was approx £1000 2 years ago
Not sure what income multiple used by FA
You say electoral roll won't help then quite a big score item do you mean I need to get that sorted or it does not really matter?


I am guessing we will have to go elsewhere

Thrugelmir

Rocket1971 wrote: »

We both have an overdraft facility that we use (separate accounts) but it is then cleared at month end


I asked natwest to reduce my monthly payment short term they automatically defaulted me but maintained payment plan and paid off in full. The amount owed at time of default was approx £1000 2 years ago
(

Both the above suggest that you are financially stretched, and at great risk of financial distress should your circumstances change.

Suggest you pay a visit to the Debt Free Wannabe Board. Lots of support and advice on there. As its up to you to tackle your problems head on. Lenders no longer give people any easy way out.

Senior_Paper_Monitor

£1000 default 2 years ago is outside Skipton criteria ....

DEFAULTS


No more than two defaults have been registered within the last 3 years, neither of them must exceed £500.


'Living in overdraft' is a big 'no no' with Skipton.

My recollection is that absence from voter's role is a fairly big score reducer with Skipton. Whatever you are doing going forward you should get this sorted out - with that default in particular, and a generally weak profile (level of borrowing etc), you cannot afford to 'throw a way points'.

Rocket1971

Thank you for all you comments.

I went back to experian updated my current address details and now this morning my score goes to 999 with my risk to creditors is deemed as low.

Should of added that I also receive a rental income from an inherited property which is £1050.00 but this is obviously not taken into account by potential lenders.

Senior_Paper_Monitor

That demonstrates why advisers don't offer advice on here (limited information available).

There are lenders who will take that income into account.

I repeat my initial comment ....

"First lesson here is that Credit Agency (Experian ?) scores are worthless. The score that counts is the one that the lender calculates using the Credit Agency data and other information."

As demonstrated by Experian apparently giving you a 999 score with a £1,000 default within 2 years, constant use of overdraft and high unsecured credit usage (and not on voters roll ?). No lender will score you that way.

ChopperST

Skipton turned me down recently for using a £250 free overdraft to "stooze" in a savings account.

Luckily we had a decent broker who appealed for us directly to the BDM / underwriters and we were asked to provide evidence of where the money was. We sent all our savings and investments in to prove we were living within our means and the decision was overturned on appeal but clearly Skipton have a very strict policy on being overdrawn...

Rocket1971

ChopperST wrote: »

Skipton turned me down recently for using a £250 free overdraft to "stooze" in a savings account.

Luckily we had a decent broker who appealed for us directly to the BDM / underwriters and we were asked to provide evidence of where the money was. We sent all our savings and investments in to prove we were living within our means and the decision was overturned on appeal but clearly Skipton have a very strict policy on being overdrawn...

thank you Chopper ST for the positive comments. At least I know it could be due to their strict policy and nothing more.
My FA is waiting now until next week as new rates are due to come out, he is then going to look at other rates and possibly go back to the skipton and ask for review.