Refused an Agreement in Principle - how long to wait before reapplying?

Wh05apk

porkpie74 wrote: »

Thanks for the comments.

Can anyone answer my original question though of how long is the usual amount of time to wait before reapplying for an agreement in principle after having been declined?

There is no time as such, but no point re-applying until you know why, as you have had 2 declines, I suspect your broker does not what they are doing, and is either not checking affordability first or is missing something, I suspect a 3rd AIP will also be a decline unless something changes.

jimjames

porkpie74 wrote: »

I used a mortgage adviser to approach them (should have stated this) and yes, I understand what you mean by closing cards = increase in % used, but I was advised by the mortgage adviser that the total number of cards could have been an issue (I had 5 and my wife had a store card and 7 cards, including 2 with zero balances she hadn't closed).
So now having been refused, how long should we wait (as three will be "footprints" on our credit records now.)

As per previous replies I'm sure the cards isn't an issue.

Just had approval and with more cards than that although used credit was probably 5% not 50%. If you can clear the balances that quickly is there a reason why not before, or are they on 0% deals?

Thrugelmir

porkpie74 wrote: »

Thanks for the comments.

Can anyone answer my original question though of how long is the usual amount of time to wait before reapplying for an agreement in principle after having been declined?

Ignoring the issues behind the declines won't help. These need to be addressed first.

ACG

There is no definitive answer.

Just last week I had a client declined with one lender because they have had 12 credit searches in the last 12 months (none in the last 3 months), but a day later they were accepted by another lenders with 13 searches on their credit report - 1 of which was the day before.

So you can see just from that that lenders really do have different thought processes when it comes to searches on credit reports along with everything else on your credit report.

Personally I would give your broker a kick up the backside get the reason(s) for the declines and then find someone that is prepared to put in a bit of effort. It could be entirely possible to place this tomorrow, likewise it could be 3, 6, 12 months or even longer. Impossible to answer with so little info but I would be very surprised if there is not a lender for it if the only issues are what you have mentioned.

Thrugelmir

jimjames wrote: »

As per previous replies I'm sure the cards isn't an issue.

In the context of a 10% deposit my gut instinct is to say otherwise. In a broad context certainly doesn't sound as if the deposit has been saved.

porkpie74

We both ran Experian searches, mine came back as 978 and "excellent" and 4 positives and my wife's was "fair" with 2 negatives: 1) the borrowing on the regular installment credit hadn't reduced significantly over the last 12 months and the other was that 78% of her available credit was used. These were the only issues - and to answer a previous post- mos tof the cards are on 0% interest deals.

Thrugelmir

porkpie74 wrote: »

mos tof the cards are on 0% interest deals.

That's something that the lenders can now obtain and process. Along with a whole array of other data that show the usage and trends in credit usage. Lenders process the data through algorithms when determining whether it passes their lending criteria.

Experian scores and the like are totally worthless to a lender so aren't used at all.

porkpie74

Just spoke to my broker but she said she won't be able to get a definitive answer as to why I was refused, just that I received a low credit score

jimjames

porkpie74 wrote: »

mos tof the cards are on 0% interest deals.

If only "most" of the cards are on 0% then that must mean you are carrying balances on other cards not at 0% so the overall amount and paying at 20% for credit may be an issue not the numbers. There isn't any point paying at full credit card rates like 20% when you are getting 1% on savings.