Remortgage Refusal

RAT_TRAP_101

Hi to the rest of us Minions,
I have recently been turned down for a remortgage on the grounds that the company does not like the way i use my account ie using my overdraft! (so why offer them) I have always used my overdraft in and out for 20 years. initialy I was told it was my credit file but having been checking these for years I know this was untrue (unless there is hidden info we can't see?) and then the reason changed to not liking the use of account. So when I said I would like to appeal their decision, I was told I could not! Note; they are on your side.......unless they don't like you! so my questions are as follows, is not liking the way you run your account a good enough reason to refuse and can I appeal, also is this fair ? they also did 2 credit searches in the space of 2 months but they only had permission for 1, this lowered my credit rating! :mad: is this fair and allowed? thanks for any advice!

R_P_W

They don't need to give you a reason and they are under no obligation to lend to you.

Thrugelmir

RAT_TRAP_101 wrote: »

this lowered my credit rating! :mad: is this fair and allowed? thanks for any advice!

No they haven't. Credit agencies don't lend money. Lenders use datasets supplied by the Credit Agencies to arrive at their own decisions. CRA's scores are totally meaningless.

RAT_TRAP_101

thanks for that, I know about the CRA's and how lenders use them it just seems the lender (unamed high st etc) has not been fair. i thought they had a code? my CR file is ok so I can not understand the reason?

pathtofreedom

Did they say why exactly they turned you down? Are they saying because you use your overdraft so much it is unaffordable? Were you trying to remortgage with the same people you use now or another bank?

It might be worth going to a whole market broker to see if they can help. If you haven't remortgaged since mmr came in, it might be worth reading up on the afordability criteria and seeing what your outgoings are like.

chanz4

Over draft use on your credit file isn't good, this alone can be a decline if used often

lee111s

RAT_TRAP_101 wrote: »

thanks for that, I know about the CRA's and how lenders use them it just seems the lender (unamed high st etc) has not been fair. i thought they had a code? my CR file is ok so I can not understand the reason?

They don't have to be what you deem as fair. It's their money so they can lend to whoever they wish. They do have a code, but one of their lending criteria is obviously that they don't like overdraft usage.

Thrugelmir

RAT_TRAP_101 wrote: »

thanks for that, I know about the CRA's and how lenders use them it just seems the lender (unamed high st etc) has not been fair.

Overdraft usage suggests that your finances are weak. Any unexpected event could easily put you in financial distress. In the current climate lenders are required to act both responsibility and consider affordability. Fairness doesn't come into the equation.

MLSY

Hi Rattrap

There are plenty of lenders out there

Depending on the loan to value you require I am sure if this is the only reason there will be another lender that will look at your circumstances in a more favourable light