Good credit score but can't get a mortgage - is this why?

peterr

Hi all,

I have recently been saving up to get a mortgage, and finally have enough for a 15% deposit, but can't get a mortgage in principle from Santander, Halifax or Nationwide. To give context, I'm a first time buyer, never had a CCJ, been bankrupt, or defaulted on a payment on my credit cards (which I pay off in full each month). I'm in full time permanent employment. I fail the credit check every time.

After the initial panic of realising that I simply cannot get a mortgage, I signed up to Experian to get my credit report, my score is 886, "good", but from reading posts on this forum I get the feeling that the score is useless and banks will use the details of the report rather than just that number.

Until July last year, I was living with my parents, but after getting a job started renting a flat nearer to work. I informed my bank of new address at this time, and my credit report shows a "linked address" from my parents house to my flat being registered in July 2013, presumably from the bank telling the credit agencies that I changed address.

Back to the mortgages that I cannot get in principle, I notice on my credit report that I am not listed as being on the electoral roll at my new address (despite registering with the local council in September 2013). Is this why I can't get a mortgage in principle? Am I failing the credit check because the bank can't find me as existing at the address I have given? When I use my parents address (where Experian shows me as still being on the electoral roll), I still fail the credit check - but is this because of the linked address?

Back in June 2013 I asked Halifax and Nationwide for mortgages in principle, to get an idea of whether or not I could get a mortgage, and I passed the credit check and got offers in principle. Is it likely that the reason I am now failing is because of my move in July but me not being on the electoral roll?

Thanks for all your help,

Peter

lee111s

More than likely the electoral roll issue.

I tried to get a credit card not long after moving buy was rejected. As soon as I got the electoral roll updated I re-applied and was accepted with no problems!

hcb42

likely to be the issue

get registered asap and don't apply for anything else until confirmed

You could also appeal to your bank, we made same mistake, and we got mortgage approved (was only 33% LTV)

peterr

Thanks both. Will give the council and Experian a call tomorrow and see if anything has gone wrong at their end.

ethank

Note that Councils do not normally update the electoral roll between August and December, as this is 'Annual Electoral Register Canvassing Period' - they wait for all of the forms to be returned, and then are supposed to register everyone in December - however some councils are better than this than others.

I moved into my property in November 2013 and I have been chasing my council as I want to change credit card deal, however they have told me that they plan to update the register with the new registration details in February!

Experian have a good guide at http://www.experian.co.uk/consumer/questions/electoral-roll/electoral-roll-1.html

Dave_Ham

Whilst this will be a contributing factor, 15% deposit should mitigate this. You should not be getting this many AIP's, so please go easy and get some formal help.

The flat could be the issue not locating you as sometimes can be, although see a broker and so long as no adverse in there and proof of residency can be achieved; just get a broker to go to a non scoring lender..

FreddieFrugal

I'll share a problem I found. Tried to get decision in principle from Nationwide and was declined at credit check stage. Couldn't understand why so phoned to find out. Said it was to do with something I hadn't declared on form. Only thing I could think it could be would be credit card balances.

So redid form putting balances on and that time it worked.

Stupid things is it specifically stated 'Do not include balances if you pay full balance each month'. Which is exactly what I do. Obviously their system doesn't follow their rules.

webinteractions

My council (Torbay) has told me that records will be updated on around 17th February. I'd suggest contacting yours to ask when they will be updated.

amnblog

as is mentioned here every week, the credit 'score' shown on the front of Experian and Equifax is of no interest or relevance to lenders.

I had a client with 7 CCJ's totalling £20,000 who had an 'Excellent' score.

Lenders and brokers are interested in the detail in the back of the file.