Turned Down

fizzscone

Hi Folks


Myself and girlfriend have just been turned down for a joint mortgage by Nationwide.


The amounts we wished to borrow were more than fine, the payments were perfect but when it came to the all important credit check a big fat red cross appeared


I currently own my house but we wanted to sell and buy a property of our own.


I have just joined Experian and have a score of 898 (I know this means jack s...) I have 3 positive factors & 2 negative factors according to Experian. One of them being I pretty much only pay off the recommended amount of my cr card each month (which I can change) and secondly I had a default for £10 from years ago from 02 which I only found out about 2 years ago, needless to say I paid it however it seems to have made a big dent on my cr score and how lenders would view me.


My question is, when applying for a mortgage through lenders and the computer says no (sorry!!) do I get the chance to explain to a person that everything is "satisfied"? would that make any sort of difference? It's only £10!!!


Thanks

dunstonh

One of them being I pretty much only pay off the recommended amount of my cr card each month (which I can change)

That indicates one of two things. Poor financial management (keeping debt on one of the most expensive methods) or struggling to meet current commitments.

I had a default for £10 from years ago from 02 which I only found out about 2 years ago, needless to say I paid it however it seems to have made a big dent on my cr score and how lenders would view me.

These things can come back to bite you but the significance is time. If it was years ago then as long as you are not pushing other limits then just one from years ago should be ok.

My question is, when applying for a mortgage through lenders and the computer says no (sorry!!) do I get the chance to explain to a person that everything is "satisfied"? would that make any sort of difference? It's only £10!!!

Its more to do with financial responsibility than the amount. If you cant handle a mobile phone bill then how are you expected to handle a mortgage. Decisions are not really computerised. There is an element to it but declined cases usually see human checks to see if its borderline and maybe something the underwriters may consider. Different lenders also have different criteria. So, it may be less of an impact at one but more at another. Have you spoken with a broker?

fizzscone

Hi Dunstonh and thanks for your response!


Yeah re cc poor credit management on my behalf but one which is an easy fix I guess.


I currently have a mortgage and not missed a payment for more than 5 years The 02 phone bill was when I was young and invincible, or so I thought! Didn't pay it because I felt they had over charged me.


When I divorced I took on full ownership and mortgage of my current property and that's when I found out about this default from 02. RBS were fine for me to send them the letter from 02 advising that everything had been satisfied.


Yes we were at a mortgage advisor today so just doing some checks to find out why we were declined

ACG

The credit card... its not a recommended amount, its the minimum amount. I dont think anyone recommends paying the minimum unless its interest free.

How much is the purchase price?
How much is your deposit?

Paying the minimum on a credit card and a £10 default on a mobile phone from a few years back should not be a reason to not get a mortgage. Obviously some lenders (as you have seen) are not going to like it but I would be very surprised if those 2 things are enough to prevent you getting a mortgage full stop.

It could be worth a chat with a broker. Id be pretty confident (based on what you have said) that this can be done.

kingstreet

Order the other versions of your credit file and speak to an independent broker.

fizzscone

Cheers guys, will do.


I'm still waiting on my mrs checking her score. She only finished uni a couple of years ago and I suspect that she may have a few cobwebs needing dusted off before we can go any further.

kingstreet

Forget the score. Your £2 statutory files are all you need to establish of you have any other credit problems and to establish on which version of your file(s) your default is visible.

jamesd

A lender is supposed to tell you the main reasons for a decline decision and the relevant guidance from the Information Commissioner is that merely telling you to check a credit report is not sufficient. They should at least tell you the main things that concerned them. That will at least help you to know what you have to check from where and correct the information if anything is incorrect.

That can be a little problematic for a joint application because they can't tell you about something on the other applicant's report. They would have to tell each of you individually or breach data protection requirements.

If the information is correct then it's entirely up to Nationwide whether they want to lend or not.