Mortgage declined - undisclosed debt

voodooqueen69

Hi, looking for some advice please.

We are FTB with a LTV rate of 79%. We were given a "mortgage promise" by Bank of Scotland" and subsequently applied. We have just heard we have been declined.

At the original meeting I explained I had a trust deed just short of 6 years ago and had defaults on my credit file from then also. These are due to drop of in November so was just getting things ready for then and wanted to see if they would accept someone like me once there off my credit file. They did a credit check which came back fine which was very surprising but assured it was all good. Again at the application I was told the new credit search was the same score as the first and not to worry.

One day with the underwriters was all it took to decline. They have said it was undisclosed debt. I have disclosed everything (I'm very honest, no point lying to be just be found out). My few credit account since the trust deed are fine with no late payments at all and balances are paid off each month.

Does it sound like the trust deed etc are the reason for decline and does this mean I was never going to get the mortgage in the first place?

I wasn't planning on going for the mortgage until November when the credit file is squeaky clean but was talked round by the bank. I know it doesn't go for much but my experian score is 935 so it's been in worse states.

Hope someone can help.

kingstreet

Another HBoS soft search - pass, full score decline.

What's a trust deed? Is that the Scots version of a CC,J or an IVA? I can never remember.

voodooqueen69

It's similar to an IVA. The credit search at application was a full search as showing as one on experian.

vuvuzela

A word of advice, don't pay for your 'credit score' again, it's an utter waste of money and bears no relevance to any lender's decision. Experian / Equifax hold records, but all lenders score differently.

voodooqueen69

I'm not actually paying for the credit score as such, I know lenders have their own scores. I've raised disputes through experian to get dates of defaults changed and this way I can keep an eye on it. Just paying for convenience which I'm happy to do for a short time. Thanks for the advice though.

kingstreet

An historic IVA or bankruptcy is an automatic decline by HBoS nowadays;-

Bankruptcies

We do not accept applications from customers who have ever been declared bankrupt or have made an IVA with creditors.

http://www.halifax-intermediaries.co.uk/criteria/mortgage/default.aspx?filter=B

voodooqueen69

I've asked the mortgage advisor this several times as was told this by a broker. She's told me its fine and never had a problem. The branch manager is also aware of my trust deed. It was also put on the application which was going through. I've just spoke to the mortgage advisor and apparently the only reason our application was reviewed was due to an audit. Something is not adding up.

Wh05apk

voodooqueen69 wrote: »

Something is not adding up.

Yes, inexperienced sales person, too keen to hit targets, without proper knowledge of their own lending criteria!

voodooqueen69

Surely as soon as they click that you have an IVA on the application it would automatically decline. If not, that's a pretty messed up system. I'm not so angry that I've been declined but that I've been worried about ths from the start and been reassured so many times. The mortgage advisor is currently doing an appeal as she can't fathom why it's been declined. If it turns out that I was never going to get this mortgage with them then there will be a hefty complaint and my £140k is out of there! Surely this is just leading someone on, meanwhile I can kiss my house goodbye!

GMS

Are you at a different address now than the one where the trust deed was registered? If so it is possible it wasn't picked up on initial search.

So called adviser is sadly a representation of branch staff. No regard for clients. more concerned with keeping up their targets. Often not knowing their own policy as seems to be the case here.

Get a proper broker on the case for you to explore the whole market and see if there is anything that can be done for you.

kingstreet

If the "Has any applicant ever been declared bankrupt or made an Individual Voluntary Agreement (IVA) with creditors?" box on the application is ticked, the system is supposed to kick the case out on policy.

Was the box ticked?

Interestingly, on the application summary which is returned after an online application, it is phrased "Have any applicant(s) ever been declared bankrupt or made arrangements with creditors?"

which is actually a different question, which is a bit of a concern.