Mortgage declined on basis of not being on electoral roll

AlanG89

Hi all,

I am a first time house buyer who's had an offer accepted of £290,000 on a property and have been applying for 90% LTV mortgages through a broker.

Some background details:

- Good credit history (924/900 on Experian)
- No outstanding loans or credit card payments (never been in default)
- Limited company contractor with a gross income of £49,000 for year end 2015

My broker has looked around for a deal and insists that a company called Accord are the only lender on the market willing to lend me the required £260,000 mortgage I need.

I had an AIP agreed with them according to the broker and upon application have been referred. The broker seems to think this is likely to be solely because of me not being registered on the electoral roll at my current rented address.

I've put in an application to re-register with the local council at my parents address (to which I will soon be moving back to temporarily) however I was wondering whether anyone had experience with regards to being registered on the electoral roll making a make or break difference in getting an approved mortgage?

I understand it's required to verify your ID but find it quite frustrating that something so pedantic can act as a roadblock.

My broker has suggested waiting the month it will take to be fully registered with my local council and re-applying for the same deal.
He's commented there is still a chance they may not accept so I'm wary of that.

Is there any harm in me contacting the lender directly and asking them whether this was the sole reason for rejection? The broker seemed to suggest that there was very little they were willing to disclose.

Many thanks in advance.
Alan

heytoki

You have broken one of the goldens rules. You didnt do any research before deciding that you wanted to buy?

amnblog

AlanG89 wrote: »

My broker has suggested waiting the month it will take to be fully registered with my local council and re-applying for the same deal.

and how will the vendor feel about feel about hearing nothing for a month?

kingstreet

Declined in the title, referred in the text.

Which is it?

Are you using your gross contract value, or your SA302 earnings for 2014/15, £49,000? have you already submitted your 14/15 tax return?

If you fail credit score by not being on the electoral roll, but would pass by being on it, it seems necessary to go through registration. However, this won't benefit you until the CRAs have the updated information and the lender can actually see it. That may take more than a month.

AlanG89

kingstreet wrote: »

Declined in the title, referred in the text.

Which is it?

Are you using your gross contract value, or your SA302 earnings for 2014/15, £49,000? have you already submitted your 14/15 tax return?

If you fail credit score by not being on the electoral roll, but would pass by being on it, it seems necessary to go through registration. However, this won't benefit you until the CRAs have the updated information and the lender can actually see it. That may take more than a month.

My mistake, an application wasn't actually made but the broker has said that I've fallen short on Accord's initial credit score check program prior to application.

Apparently there's no measurable figure for this and the only 2 negative points I've been identified as having are not being on the electoral roll and not having a landline phone number. Just find it a bit frustrating how I'm now on the edge of my seat for a month or so waiting to see if the addition of me being registered on the electoral roll is enough to boost my credit score up to the lender's criteria and I can't have anything more concrete to suggest this will work.

£49,000 will be my SA302 earnings which isn't actually complete yet but my accountant has given me a draft calculation.

Yeah I am concerned that the CRAs may take longer to show this on their system.

The vendor hasn't expressed any great rush to sell so I'm hopeful I have some time to play with, if needs be and I'm forced to move quickly I may be able to increase my deposit to 15% and look at an alternative lender.

amnblog

What is your day rate?

AlanG89

amnblog wrote: »

What is your day rate?

£217.28 is my day rate (£28.97 p/h)

Thrugelmir

AlanG89 wrote: »

Apparently there's no measurable figure for this and the only 2 negative points I've been identified as having are not being on the electoral roll and not having a landline phone number.

Lenders don't release commercial information and often it's a little more complex than you are simplistically suggesting.

pmd123

Someone better informed may correct me on this, but I was under the impression that a lot of local authorities don't update electoral registration on a monthly basis, some only do it once or twice a year.

This would mean it could take a lot more than a month before this is picked up by a CRA.

westv

pmd123 wrote: »

Someone better informed may correct me on this, but I was under the impression that a lot of local authorities don't update electoral registration on a monthly basis, some only do it once or twice a year.

This would mean it could take a lot more than a month before this is picked up by a CRA.

I was under the impression that all councils updated monthly.

Thrugelmir

pmd123 wrote: »

Someone better informed may correct me on this, but I was under the impression that a lot of local authorities don't update electoral registration on a monthly basis, some only do it once or twice a year.

This would mean it could take a lot more than a month before this is picked up by a CRA.

If prior history is complete then recent changes should not pose an issue.