don't understand mortgage denial

matthewr

Hi all,

I have recently applied to remortgage my house so i can get some funds to build an extention so i went through the usual channels with an IFA who said with mine and my wife's income and ougoings there should be no problem finding a company to remortgage with.

However he has come back to us twice now saying that we have had our applications declined and the only reason he can see is that our credit score is bad...

So i signed up to noddle.co.uk for myself and then my wife to find our credit score is 615 and 621 respectively and that we should have little difficulty getting credit! The only things it says to improve our credit score is to be on the electoral role longer as we've only been registered since 2011.

Could anybody explain why an IFA says our books and balance sheets are fine and noddle.co.uk says our credit score is fine yet we cant seem to get a remortgage sorted?

Thanks, Matt

kingstreet

Order the other two versions of your credit file, as very few lenders take data from Call Credit alone.

CRA "scores" are worthless, so avoid paying from them. Lenders take the raw data and add it to the rest of your application and shake it up until they get their overall picture.

As well as this data, the purpose of the borrowing and the loan to value will also be important, as will choice of lender.

No other way of telling you the problem you have.

matthewr

OK, thanks for the advice. It's appreciated

dimbo61

You now have to get through the MMR ( mortgage market review )
It looks at everything !
Loans, credit cards, mortgage outstanding, LTV, income, credit score and history, any defaults or late payments.
The number of credit accounts you have
IE 2/3/4 credit cards, 1/2 car loans, direct debits ( most couples have 7/8/9)
For council tax, gas, electric, water, broadband & phone, dentist, furniture etc
They will look at your ages and plans for kids !
Why do you need extra funds ( clear debts because you spend £4,000 a month and earn £3,500) or want to build two storey extension for £50,000 to add £50,000 onto value.
It may well be time to speak to a whole of market mortgage broker

matthewr

Just been on the phone to a whole of market broker and gave him our info. He agrees it must be a credit score thing so he's got me to send him the files from experian. Crazy thing is I need £25k to add approximately £100k...i expected to have my arm bitten off!

dimbo61

" thing is I need £25k to add approximately £100k "
Maybe just maybe if you are a builder with a brother who is a plumber, sister who is an electrician and have plans already approved by the council and you live in London you might add £100K onto the value of a property by spending £25K on materials for an extension.
I spent £50K on an extension two years ago and it added £50K onto the value.
My brother is a RICS surveyor and we had plans approved after appeal by the council !
I had the work done in 8 weeks by a team of builders, plumber, electricians and other professionals.

You can add value but 4X Investment ?

matthewr

I'm not starting from scratch; the full plans have been accepted; architect, structural engineer and building control have all been paid; I'm a bricklayer ;father in law is a plumber ;one of my best friends is a sparky and I have some savings. So yep, 4x what I need from the bank is feasible

hounslowfish

Do check your other credit files. I had errors on my Experian file (in this case 90% of my records were missing!) which (probably) led to being declined two mortgages on credit score, even though my credit history is near perfect (after fixing the error, Experian now gives me 999/999 credit score...).