Can I get a building society to tell me way I present a credit risk?

bdd198

I have several buy to let properties and my own residential property. This year I have already re-mortgaged two of my properties (both required a credit check). The most recent was a buy to let mortgage with Leeds Building Society which went through fine and completed last month. Since then nothing in my personal circumstances has changed.

Last week I came to re-mortgage another of my buy to let properties and went again to Leeds. However this time they have come back to me and said I do not meet their minimum credit score. I have asked them what has resulted in me failing to meet their credit score and they can't tell me (simply, computer says 'no').They have suggested I obtain my own Equifax report to see what shows up.

Now, my problem is two fold. Firstly, if I get my own report from Equifax it will not tell me why I failed THEIR (Leeds) credit check. Every lender has slightly different criteria as to what they deem a risk. Secondly, even if I get my own copy of the report it will leave a further 'credit footprint' which, in light of my credit searches earlier this year, will start to mount up. Consequently, if I then make another mortgage application there will be at least four credit searches on my record in the last year.

My question is; is there any way of getting Leeds to tell me why their 'computer says no' so I can at least know what it is about my credit history that is causing concern? It's not actually their computer saying no, but their underwriters who I've been told don't talk to customers.

My concern is that I can't think of any reason why my credit score has failed, particularly when Leeds completed another mortgage for me only a month ago. If there is an error on my credit record I need to know so I can address it, but if the problem is simply that I have had too many credit footprints this year then I don't want to compound the situation by making more.

Any suggestions as to how I can get Leeds to be more open with me about what they deem my risk to be would be appreciated.

YorkshireBoy

bdd198 wrote: »

...if I get my own copy of the report it will leave a further 'credit footprint'

No it won't, so that's one less thing to worry about.

meer53

No lender will tell you what their criteria is for lending so you wouldn't be able to find out.

If they started telling people then people could manipulate it for their benefit,

bargainbetty

Each lender/underwriter has its own criteria that is commercially sensitive and highly protected. They have no legal requirement to advise you of anything further than the fact that you do not meet their current criteria.

Perhaps it is because you have done so much so recently. They may wish to reduce their liability against your property portfolio, or at least not increase it until they have seen you can meet your recently amended commitments for six months or so.

thebritishbloke

Lenders only legally have to give you a reason. That can be as vague as credit score or you were wearing the wrong colour underwear that day.

Checking your own credit report doesn't add another search to your file. I'd check your file to make sure no defaults on an old forgotten debt have popped up or something. It could also be your LTV against your total income. If you owe £300,000 on mortgages and only earn £20k a year, they're going to turn you down. If you only owe £20k and earn £300k a year, they're much less likely to turn you down.

bdd198

If searching my own credit record won't leave a 'footprint' then that does help.

I've looked on the Equifax website and they say I can get my credit report and score free. However, when I try to they start asking me for my credit card details and tell me I am signing up for a 30 day free trial followed by monthly payments of £14.95!

I don't want a subscription to Equifax, just a copy of my record (including my personal data) which they have been selling to mortgage brokers!

Is there any obligation/requirement under the Data Protection Act or associated legislation that would mean Equifax would be obliged to give me my report and score free without having to become a subscriber?

meer53

Just sign up and then cancel the free trial within the 30 days to avoid the monthly fee.

Lenders use more than credit file data to make lending decisions, if they've said you don't meet their criteria then getting your credit file probably won't help.

From what you've said, it sounds as though they've decided your lending to income ratio may be at their maximum limits. But only they know why you were declined.

maas

You can either get a free trial or if you've already claimed the free trial you can check your file for £2 (from each of the 3 credit reference agencies).

Equifax (instantly)
Experian (up to 4 days)
Callcredit (instantly)

Thrugelmir

bdd198 wrote: »

The most recent was a buy to let mortgage with Leeds Building Society which went through fine and completed last month. Since then nothing in my personal circumstances has changed.

This would be sufficient for an underwriter to be cautious. Too much recent activity.