Mortgage declined due to many searches - how long to re apply?

88stevo

Hi,

Credit history is good lots of settled accounts. 1 missed payment to studio 24 in june 2013 was settled same month.

Almost 3 months ago back in october 2013 i applied for a mortgage online with nationwide who kept declining me even though on experian my credit file was 'excellent' having a slow moment i thought there must be something wrong with how im entering the application a tried about 5 times before eventually contacting a advisor who looked at my file and said it was due to having a wonga back in march 2013. He told me how bad it is having wonga etc and that most lenders wouldnt look at it, he tried with a couple of others who both declined. I then tried another advisor who basically said the same but tried with natwest, they declined and he then informed me that i should wait 3 month before doing anything else..

3 months on and that house has gone and i am now trying to get a mortgage on a different house and im in contact with a different advisor, he today suggested i apply with a rbs as they use equifax for credit searches and believe it or not the wonga is not there!

However...he said the missed payment shouldnt be a problem as everything else is good but was a little concerned as natwest had declined me twice once on 24 october and again on 4th november as they are the same as rbs. Now if its not the wonga im pretty sure it has to be because of the searches so if i go ahead and apply on say the 5th february is that leaving it enough time?


Already lost 1 house i wanted and had a great offer accepted here so dont wanna let this 1 slip too..

Any input much appreciated.

Thanks!

ethank

Have you got your credit reports from all three providers Equifax, Experian and Callcredit?

Does your current address match 100% the Royal Mail address?

Are you on voters roll?

Thrugelmir

Payday loans are a no no. Suggest that you are financially stretched. Not the way to enter a 25 year commitment.

88stevo

Got reports from equifax and experian. Was at same address for 4 years untill late november 2013 when house sold, had a mortgage for the period and never missed. Now living with parents untill got this sorted. Pay day loan was because i lost my card and couldnt access online banking so transferred to another card, paid it back 3 days later, doesnt matter to them i know but so frustrating!

Wh05apk

What LTV are you after, at 90% with pay day loan and missed payments then little chance, 60% then should be no problem.


Multiple searches will not help, but are a bit of an urban myth, they will not have a dramatic impact.


With some lenders, payday loans are an instant decline, as imply that you cannot manage day to day finances.

88stevo

Yeah well thats why i am going to try rbs next because they dont use experian for credit check they use equifax and on equifax the pay day loan does not show.

Worrying though as natwest use this same method and declined me last time.

trying to get 90% because its all the deposit i have for the home im looking at.

Gordon_Hose

RBS and Natwest are the same group, so expect another decline.

88stevo

thats why im hoping the decline was just due to the high mount of applications prior to applying with them, it will have been 3 months next week

Gordon_Hose

Thing is you've had a PDL in the last 12 months, at 90% that is going to be a huge negative factor.

amnblog

Do not get a search redone with a lender who has already declined you if nothing has changed.

It sounds like you are chasing a 90% or 95% LTV - is this the case?

88stevo

yes that is correct amnbolg.

when i have the search do wi natwest i had around 7000 in over drafts and credit cards which have now all been paid off.

here is a qucik view of my cicumstances

gross employed income 26000 year (4 years in job)
self employed income - year 1 3000. year 2 10000 (6500 average)
total 32500 per year gross income.

debts loans payments per month-

260pm car finance

the house i am looking at is 120,000 and i am looking at a 5%-15% deposit (lower the better so more money for changes to the house)