Mortgage with a Fair and Good Credit Rating

jrmcleod

Hi All,

First time poster so please bear with me.

My wife and I own our home. We have been informed that its worth £220,000 so selling it will leave us with around £45,000 of equity. My salary is £31,000 an dmy wifes is £21,500. Our mortgage at the moment is with Halifax. We have found the house we want to buy and the deal can be secured for £200,000. We would be looking to borrow £170,000 over 30 years (we are 31 and 28 respectively). We do have a credit card, personal loan and PCP deal but the loan and credit card would be settled on the sale of the house.

My credit score is 905 (good) and my wifes is 700ish (Fair). We have applied through Halifax and Nationwide and have been declined Agreements in Principle.

Our descision now is to go with a mortgage broker to find the best chance of being accepted. Could anyone offer an explaination as to why we have been declied? Is it simply my wifes credit rating?

csgohan4

more importantly what is the credit history for both. Credit ratings doesn't mean anything to lenders, it's an arbitrary number made up by the credit agencies.

kingstreet

Declined by DIP by Halifax when you're an existing borrower?

Are you sure there's nothing on any of your credit files such as recent missed/late payments?

It's the data that counts. The numbers are a made-up marketing ploy.

jrmcleod

The credit card and loan are in my name. I have no missed payments or late payments in the past 36 months at least since i have had them. I have 2 defaults on my credit file which go back to 2010 and will be off within the next year. Since these defaults occurred i have never missed any payments and all the debts were settled in full.

The PCP deal for our car is in my wifes name and that was only taken out 1 month ago. Before this, my wifes score was 890 (Good). The Halifax mortgage is in her name as 5 years ago is when the defaults occurred on my file so there was no point putting me on it at the time.

Including a new monthly mortgage payment of £700 per month (instead of our current £400) and all our regular bills we are left with £1600 a month spare. I dont believe it has much to do with our existing borrowing as that is managable and still leaves us the £1600 a month. It will also be settled on the sale of our house.

Is it the defaults from 5 years ago? If so, why would i be approved for a £6500 credit card from Barclaycard and a £7000 loan from RBS (for house improvements)?

My wife has never missed a mortgage payment in 5 years. The car payments only just started yesterday.