Declined after AIP and no CCJ (20k available credit) - help

Thrugelmir

miss_sparkle wrote: »

Doesn't the amount of credit cards / credit available have an impact on obtaining a mortgage?

Doesn't really matter. Someone could obtain further credit facilities after a mortgage. Lenders look at what is presented in front of them and the past 72 months of history.

splreece

yes apologies its my typing... i initially mistyped the debt.. it is 4k unsecured.


I have just been to my bank who has backed up exactly what was said here (in that i should have been advised that paying off debt first and having a smaller deposit will shoot the affordability calc up).

THey have booked an appt with inhouse nationwide person to see if there is anything they can do away from the broker.

thanks for all the replies... I see what you mean about the unsecured. I can't remember who, but someone advised me to have debt (i actually moved a car purchase loan to a cred card to get the 0%) but perhaps credit cards are seen as a riskier debt than loans.


If you were in my position, would you push for any other applications or just clear all unsecured debt and await the 6 -12 months for the searches to clear?

I am tempted to apply to coventry as i havent yet but have had an aip but no cred check. However i don't want any black marks on the file.. i checked today and am still 980 and would prefer to wait 6 months then reapply if the circumstances are better.

splreece

miss_sparkle wrote: »

Doesn't the amount of credit cards / credit available have an impact on obtaining a mortgage?
Surely if you only earn £30k and you could possibly get £20k of unsecured debt tomorrow that would have an impact on how a mortgage lender would look at it, what is to stop someone getting a mortgage and then if they had numerous credit cards available to them going out the day after they get their mortgage and getting 20k's worth of extra debt!

I'm not advising, just asking the question.

A relative of mine applied for a mortgage and was told by the lender to close all her credit cards ( she had 4 ) that didn't have any balances on them for the reason above, she could borrow what she wanted with them closed but not with the accounts open.

my logic behind the large available credit is that is shows i can handle big credit without the need to spend... i assumed it would be looked on favourably.... i.e only spending when necessary rather than spending lots and clearing lots.

ACG

Have you said anywhere how much your income is? I cant seem to see it.

Regardless, you have been declined by 3 lenders and havnt got a clue why on 2 of them.

First job - stop making applications and find out why you have been declined. It could be that you have available credit for £20k - some lenders do not like that, others prefer to see you with a lot of credit but not using it... there is no set answer. My personal preference would be to see someone with a manageable amount of available credit but only using a small proportion of it. £20k of available credit is not manageable for the average man in the street.

Second job - if your estate agent broker suggests anything more without getting to the bottom of why the others have declined, find a new broker. We can all apply blindly, but you dont need to pay for the advice they offer to do that, you may as well do it yourself.

Thirdly, get your reports if you have not already. Get all 3 as there can be times something shows on one but not another.

Personally I dont think your broker is helping you in any way. But I dont know the full story.

lonestarfan

ACG
In the op he said - " I earn just under 30k"

Thrugelmir

splreece wrote: »

my logic behind the large available credit is that is shows i can handle big credit without the need to spend...

As a lender I'd be asking why somebody feels the need to have this amount of credit available. The lender doesn't know you personally. So the mortgage application is processed on a subjective generic basis.

ACG

So he did, I must have read over that about 5 times! Saturday morning after a few (thats my excuse).

In that case, im surprised affordability is a problem.

Just to add, you dont necessarily need to appeal a decline. You just need to understand why its there. It could be a mistake on their side or something easily rectified on your side. This is why the broker needs to pull their finger out get on the phone and find out what the problem is.

splreece

Thanks for the advise...

I worked in sales for a number of years and just twigged that I have probably just met a great sales person that wanted to push a sale through or someone who didn't really know what they were doing and panicked.

EVeryone is told not to do multiple checks... but frustration set in and I auth'd her to do the others. GRR

I have all 3 reports... no entries or worries on any of the reports.. the only difference is callcredit have less account entries than experian or equifax but I assume that is because the credit company doesnt use callcredit.

splreece

ACG wrote: »

So he did, I must have read over that about 5 times! Saturday morning after a few (thats my excuse).

In that case, im surprised affordability is a problem.

Just to add, you dont necessarily need to appeal a decline. You just need to understand why its there. It could be a mistake on their side or something easily rectified on your side. This is why the broker needs to pull their finger out get on the phone and find out what the problem is.

ahh... i have no excuse.

Full of punctuation and spelling mistakes with no alcohol influence..


The only possible saving grace is they asked for my credit file and i've pdf'd it and sent it over. so hopefully that will show what they need.

But from the sounds of other posts, a decline is likely to be overturned unless its Halifax who have made a mistake.

ACG

Its impossible to say as we have no idea why its been declined.
See if your broker can get to the bottom of that. Also double check with virgin - I find it hard to believe you have been declined on affordability.

It might end up being a case of closing some of those accounts, giving them the letter confirming its closure and jobs a good'en (I doubt it, but again, without speaking to them its impossible to know).