Buy to Let mortgage refusal

nazzy_1

Hi,


I recently applied to post office mortgages for a buy to let mortgage. However, it was refused at the last minute by the underwriter who stated that the records don't match what I have told them in the application.
When I asked what information is incorrect or misleading the underwriter refused to tell me and said that I need to contact the credit rating agency. I have now purchased my report from Equifax and my credit scoring is excellent.
So I was wondering if there was anyway I can find out why they refused my application as it has cost me legal fees. Are they suppose to give you a reason at least for refusal?


Many Thanks

Thrugelmir

All mortgage applications are processed through an organisation called NHunter.

http://www.nhunter.co.uk/

Perhaps make an enquiry with them as well.

ACG

Its a bit difficult to answer based on the information you have given.

There could be any number of things but it doesnt sound like its your credit score that is the problem (the credit score on the credit reports is worthless btw).

Have you paid off any credit recently?
It could be that you have paid something off, you have not declared it but it has still been picked up the credit report - so it looks like you are not disclosing something?

It could be that you have defaults not disclosed or CCJs etc?

The only thing I can suggest is called up the post office telling them you have your reports and it all looks as disclosed (assuming it does) - sending them in and seeing if you can get a response?

Apart from that, I would say go and speak to a broker.

theartfullodger

I had something similar with TMW which eventually got sorted...

The application form asked various things (income etc etc ) & which bank account mortgage payments would be taken from - so I put in my "lettings" account which I use for those matters (ie not my main account). TMW eventually come back very very suspicious saying "Mr Artful you said your income was £xxk but the bank account doesn't show any of the claimed pensions you invented & so we are turning you down... "

I had applied via. a broker (RLA..) who, having got the full story from me, eventually sorted matters: Think it needed at least 6 months of ALL other bank statements & my last-years tax return...

This was made worse as the broker had originally miss-transcribed my post code, TMW could find no record of me living there & thought I was a right fraudster..

Good luck, keep plugging away, you may eventually get to the bottom of it & sort it..

PS I got a B2L mortgage at age 66 that expired age 80, and with no "salary", only pension, bank interest & property income: Don't believe what brokers and bank managers tell you about what is possible..

Propertyauthor

I have had problems with the Post Office recently of this nature, and that was just to open a savings account, followed all their advice and still no luck, they were terrible.

For Buy to Let I'd consider going to an experienced broker who can 'add value' by making sure the property stacks up now and into the future financially rather than just getting a mortgage.

It's important too if you haven't rented before to use a NALs, ARLA or RICs agent who insures your rent and are trained in letting legals, or join someone like the Residential Landlord's Association.

There are over 100 checks to make on a BTL property before you let it to make sure it's legal, so as well as sorting your mortgage checkout a new guide from the government: https://www.gov.uk/government/publications/how-to-rent and make sure your tenants get a copy so they are clear about their rights and responsibilities.

kingstreet

nazzy_1 wrote: »

I need to contact the credit rating agency. I have now purchased my report from Equifax and my credit scoring is excellent

Were you advised to contact Equifax for a credit file, or is that the one you chose?

If BoI takes date from another CRA, you may not be seeing what it can see.

Obtain all three versions of your credit file to check. Do not pay for "credit scores" as these are worthless. Lenders calculate their score from the raw data. Your £2 statutory credit file is adequate in each case.

nazzy_1

I was advised by the underwriter to view and amend the credit report. This was because it was a joint application and an association had been created between the two applicants that needed to be removed.


Seems like its going to be a long slow journey ahead but Im not going to give up.


Thanks for the advice guys.

nazzy_1

ACG wrote: »

Its a bit difficult to answer based on the information you have given.

There could be any number of things but it doesnt sound like its your credit score that is the problem (the credit score on the credit reports is worthless btw).

Have you paid off any credit recently?
It could be that you have paid something off, you have not declared it but it has still been picked up the credit report - so it looks like you are not disclosing something?

It could be that you have defaults not disclosed or CCJs etc?

The only thing I can suggest is called up the post office telling them you have your reports and it all looks as disclosed (assuming it does) - sending them in and seeing if you can get a response?

Apart from that, I would say go and speak to a broker.

Ive never defaulted, in fact my credit score is 502 which according the Equifax is excellent and above the UK average of 430. So it must be something else.


Just soo frustrating when they reject you and don't bother giving you a reason.

ACG

Ignore your score, as I have said its worthless. Im not joking when I say its worthless. That is the score the agency gives you, it has no baring on an application what so ever.

Lenders take the information on your credit report (ie, your commitments, your payment history and balances) and then combine it with the information on your application form (which credit agencies have no access to) and then come up with a score for your application.

Having worked for 2 banks, I know that they do not use the score provided by the agencies.

Speak to a broker. There could be any number of reasons but without seeing your report(s) and your information in more detail its impossible to give a reason.