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mortgage advice needed
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Beachview_2
Posts: 498 Forumite
I'm after some mortgage advice for a family member. Sorry its a long one.
He is on a low income so that's the reason for the small amount of mortgage. He has no debts. He has money from the sale of his last house.
He applied for a mortgage with Virgin Money. All went well, including the affordability questions. They did a credit search and that was ok. They offered him £18,600, and emailed out a decision in principle.
He found a property he wanted so rang Virgin to get the mortgage started. Virgin said he'd need an appointment with a mortgage adviser to do this. Virgin said they could extend the length of the mortgage til the age of 75, and could maybe borrow £23000.
When he spoke to the mortgage adviser, that's when everything changed. He was told that they wouldn't lend him anything, and that he didn't meet their criteria after all.
He rang Barclays/Woolwich, and went through the same process, all the affordability etc and said he could borrow around the same amount as Virgin. Everything was going well with Barclays / Woolwich til the credit search, and he was turned down. They wouldn't tell him what they found on the search. They just said it showed 'disclosed commitments' - whatever they are?
Is it because he got 2 credit searches very close together?
He rang Virgin again and got speaking to a manager who admitted they made a mistake in offering the mortgage, when he didn't meet their criteria. The manager said they would try to get their credit search removed. Bit late now.
Its a whole mess. He's scared to apply anywhere else. How long would he need to wait? What does disclosed commitment mean?
He is on a low income so that's the reason for the small amount of mortgage. He has no debts. He has money from the sale of his last house.
He applied for a mortgage with Virgin Money. All went well, including the affordability questions. They did a credit search and that was ok. They offered him £18,600, and emailed out a decision in principle.
He found a property he wanted so rang Virgin to get the mortgage started. Virgin said he'd need an appointment with a mortgage adviser to do this. Virgin said they could extend the length of the mortgage til the age of 75, and could maybe borrow £23000.
When he spoke to the mortgage adviser, that's when everything changed. He was told that they wouldn't lend him anything, and that he didn't meet their criteria after all.
He rang Barclays/Woolwich, and went through the same process, all the affordability etc and said he could borrow around the same amount as Virgin. Everything was going well with Barclays / Woolwich til the credit search, and he was turned down. They wouldn't tell him what they found on the search. They just said it showed 'disclosed commitments' - whatever they are?
Is it because he got 2 credit searches very close together?
He rang Virgin again and got speaking to a manager who admitted they made a mistake in offering the mortgage, when he didn't meet their criteria. The manager said they would try to get their credit search removed. Bit late now.
Its a whole mess. He's scared to apply anywhere else. How long would he need to wait? What does disclosed commitment mean?
0
Comments
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hi beachview
sounds like you have had a runaround - best for your son to obtain a copy of his credit file to see what is showing this will not effect his score further if he gets his own record. Some sites will give a free credit reportI am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, feel free to check our website for our registered number. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The applicant needs to engage a mortgage broker.
He is try to deal direct with lenders without any understanding at all.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
hi beachview
sounds like you have had a runaround - best for your son to obtain a copy of his credit file to see what is showing this will not effect his score further if he gets his own record. Some sites will give a free credit report
I've heard about people signing up to get a free report off Experain/Equifax, then not being able to cancel it before the free month is up. Is there any truth in this or is it just a rumour? The mortgage company said they used one of those companies.0 -
You can obtain statutory reports from the Credit Reference Agencies for £2.
That'll tell what you need to know.0 -
Thrugelmir wrote: »You can obtain statutory reports from the Credit Reference Agencies for £2.
That'll tell what you need to know.
Can these be got for a once off fee of £2 without getting tied into them trying to get monthly fees?0 -
Yes you can.
You clearly need to use a broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
He got a credit report from Equifax and they've made a mistake. No surprises there then
They've not got him down as being on the electoral register. He moved house at the start of this year and updated himself on the electoral register straight away. A couple of months after that he was sent a voting card, so the council have definitely updated their records, but of course Equifax are trying to blame the council.
He's going to get a letter from the council tomorrow, to confirm he's on the register, then email that to Equifax - to see if they can manage to sort it out.
He's waiting on some sort of code from Experian before he can check them out.
What's the name of the other agency, Noodle or Call Credit?0 -
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, feel free to check our website for our registered number. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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