Appeal letter impact?

Rob_Mogs

As some of you may have read in a previous topic, we are seriously considering changing our broker as he resemble a chocolate tea pot is seems!

Now my partner is in a blind panic regarding our situation.

Our current broker will be submitting an appeal letter tomorrow to halifax regarding our rejection. I think we're just gonna let him get on with that to give him something to do, however will it further impact on us in anyway? or will it not make a diference?

Should we tell him not to bother? or just let him do it?

Thrugelmir

You need establish the reasoning behind the decline of your application by the lender. While credit scores mean very little. Yours at 500 suggests that your file contains other factors which maybe impacting the application.

Rob_Mogs

Thrugelmir wrote: »

You need establish the reasoning behind the decline of your application by the lender. While credit scores mean very little. Yours at 500 suggests that your file contains other factors which maybe impacting the application.

Reasoning was 'credit scoring'

My credit file has been checked over by a couple of sources now and the only thing affecting is the default from May 25th 2010, which was with Black Horse and was paid off in April (once we'd been through the financial ombudsman to try and fight it - due to a problem with BH)

My credit score is 583 on noddle, which is the only place we can get it as its free, but i dont know what their scoring system goes up to.

My partners file is clean as a whistle and has also been checked.

ACG

Appealing the decision is unlikely to have a negative impact in terms of future lenders. So there should be no harm done, but I find appeals only get granted if the broker has a good relationship with the lender and the case is a borderline one.

Rob_Mogs

ACG wrote: »

Appealing the decision is unlikely to have a negative impact in terms of future lenders. So there should be no harm done, but I find appeals only get granted if the broker has a good relationship with the lender and the case is a borderline one.

Broker seems to have a good relationship with the lender as thats all he harped on about for bloody ages!

But what do you define as 'borderline'?

He had already spoken to Halifax who said they'd be happy to accept an application with such a default etc.

stephenni1971

Rob_Mogs wrote: »

Broker seems to have a good relationship with the lender as thats all he harped on about for bloody ages!

But what do you define as 'borderline'?

He had already spoken to Halifax who said they'd be happy to accept an application with such a default etc.

Sounds like they have found something on file beyond what the broker outlined.

Generally appeals have a better chance if you are bringing new information they were not aware of - and appeal just based on asking them to change their mind is a harder prospect.

Thrugelmir

Rob_Mogs wrote: »

Reasoning was 'credit scoring'

Lenders operate internal "scoring" systems that profile you as a potential borrower. Totally different to a meaningless score provider by the CRA's. If you don't meet the lenders criteria your application will be declined.