Mortgage declined!!

TheChar

Hi guys I really hope someone can help me. I have applied for a mortgage with RBS today and was declined.

They went through the affordability checker and everything else in a process which took nearly 3 hours. They said everything looked to be absolutely fine affordability wise. Then when they did the credit check it came back declined. They couldn't give me a reason why.

My credit file seems fine to me with no late payments. I have the following on there:

EE mobile phone - Up to date
EE old contract - Settled
Credit card - £1k limit and £700 balance
Virgin media - Up to date
Old bank account - settled
Current account - up to date

None of the above show any late payments. However, I have the same middle name as my dads first name. After the decline earlier today I checked my file and can see an entry for an old virgin account my dad had. It shows settled now but it's in his name and not mine. (Example: pretend my name is John Robert Smith and his name is Robert Smith).

My Equifax report says near the entry that lenders can see it but should query this with you before taking into consideration. They didn't mention this. Does any of you think this could be the reason for the decline as otherwise my credit file seems fine.

Hope someone can help.

Thrugelmir

Have you been and are you currently registered on the electoral roll.

What's your LTV?

TheChar

I have 3 years on the electoral roll showing on my credit file. Before that I was not on there as my mum thought I was not going to be living back at home that long.

TheChar

It's the government help to buy scheme so I pay a 5% deposit and the government underwrite the loan.

ACG

Have they given you a reason for the decline?

RBS are underwriting those mortgages at 7% interest. So you may not be able to afford it at that rate according to them.

TheChar

No they said the affordability is fine but the credit check was the issue. They said they can't give me a reason why. I'm so puzzled as there are no problems on my credit file. The only thing is the entry of my dads and the fact I only have the last 3 years on the electoral roll on there.

TheChar

Could it be the entry on my file for my dad does anyone know? I'm really stumped as to why they have said no..

drdpj

Something daft like more than 50% of available credit used? (even though that's only £1,000?)

d.

TheChar

Well they asked me if I could pay the balance off if needed and I said yeah no problem. They said they would let me know if that was necessary. They didn't mention that so I assume it's not that causing the issue.

TheChar

Anyone? I am hoping to get this sorted tomorrow and I really need some ideas..

Kynthia

Are you looking at the same version of your credit file as them? For example are you looking at call credit while they are looking at Experian and there's something else on Experian?