Declined AIP - advice please.

Savannahh

I've been renting since April and am now looking to buy.

My situation is:

- Trading for 2 years. Need to base mortgage on last year which was profitable

- Previous homeowner. Mortgage paid off.

- Car Lease Agreement (£260 per month)

- 2 credit cards - paid in full each month

- 3 current accounts - 2 are with Santander 123 due to interest rate. The other one is for my DDs.

I am actually on the Electoral Register, but, I moved in April and apparently the Council only updates this information with the credit agencies once a year! Why??

I obtained a letter from the council confirming I am on the register and also confirmation from Equifax that their records will be updated next week.

I approached a mortgage broker who said that Coventary would accept my 1 year accounts and based on the figures would lend me £396,000.

I have a deposit of £80,000.

I submitted the info he requested (Proof of ID, Address, last 2 SA302, 3 months personal and business accounts, proof of deposit).

He was happy with info and submitted to Coventary but they declined the DIP on 29/12 as I failed on credit score.

The broker has now asked for my credit reports and asked me to add the score on them.

I've checked my Equifax, Experian and Noddle and everything is clear other than that I'm not appearing on the Electoral Register! This seems to have affected my score which is: 400/Fair with Equifax (was over 500/excellent when I appeared on ER), 911/999 with Experian and 4/5 with Noddle.

The broker has mentioned: appealing to Coventary (on basis of letter from Council confirming I'm on ER - he did submit this to them initially though), applying with them again once I'm appearing on ER with credit agencies or looking for another lender.

Bit unsure what to do now. It would help if I could know why they say my score is too low as everything looks fine on credit reports other than not appearing on ER, which has impacted my score. The only debt I have is £260 per month car lease and credit cards paid in full each month. Current accounts in credit. 3 Searches on credit report in last 12 months.

The broker said that Coventary couldn't shed any light as to why the score was low.

I've asked the broker if it would help if I closed 2 of the current accounts and stopped using the credit card (use debit card instead).

I'm scratching my head as there are also no issues with affordability.

I don't want to put through too many applications.

Savannahh

Forgot to mention that I'm a sole trader.

Pixie5740

I'd be worried about using a broker who asked for the pointless credit scores. I also think it's odd your broker didn't ask to see your credit files (not scores) before submitting an application. Perhaps it's time to change brokers.

amnblog

Your broker should be checking your credit file before submitting your case to a Lender, and asking about the 'scores' on your file demonstrates a total lack of knowledge.

Change your broker.

Savannahh

Great, thanks! Pity there's now that declined search on my file!

Not sure, if I'm allowed to ask on here, but any recommendations for a self-employed broker who could help with sourcing a mortgage with 1 years accounts?

amnblog

You can find brokers on here but they are not allowed to approach you for business.

Other posters may have a recommendation

ACG

As has been suggested, your broker appears to be letting the side down here.
The score is worthless, however the information contained in the report is important. The broker should be going through those with a fine toothcomb before applying or doing credit checks anywhere.

There are a few lenders who will work of the latest years figures although your options will be limited as the majority do want to average the last 2 years. Im sure relatively normal rates will be available.

Thrugelmir

- Trading for 2 years. Need to base mortgage on last year which was profitable

So year 1 wasn't? Lenders will decide for themselves what is acceptable. When asking for a £316k mortgage such information may have a considerable bearing.