Remortgage - Stumped by the stupid credit file rules

mcevoyc

Hi All,

I have just been going through the process of remortgaging to a new provider. Firstly to get a better deal and secondly or borrow a bit more. I was remortgaging for 160k and my LTV is only 57 %.

My credit file is pretty good. No adverse credit history apart from 1 late payment 4 years ago. My wife's to be honest we hadn't checked as she has very little in her name. Just a credit card that is paid off monthly and the dreaded store card!

My finances are good and our income was we'll in excess of what we could borrow.

All going smoothly until today and they said it had been rejected due to payment arrears on our credit check.

We have gone through mine which is fine and had to check my wife's which we hadn't done before purely because most things are in my name. We have discovered that on her file are 2 late payments of 20 Pound. Yes 20 pound!! during the early part of this year to simply be That's it!!! It was not through not affording but purely memory issues to logon and pay it!

What I am amazed at is we can get a mortgage refused at LTV of 57 %, have plenty of earnings to cover the mortgage required and have enough affordability to cover the mortgage payments, yet we are denied due to a couple of £20 late payments (within 1 month) due to mind being elsewhere!

It is absolutely ridiculous and baffles me somewhat.

The main question now is what do we do next? Try someone else? Maybe try just in my name? I am at a bit of a loose end now knowing what potentially to do next. And extremely frustrated.

There appears to be zero logic in their decisions

Thanks in advance of any help

Thrugelmir

mcevoyc wrote: »

There appears to be zero logic in their decisions

Logic is simple. Set hurdles which potential borrowers must pass. As it provides a way of thinning out applications and selecting customers to do with business with. Has to be dividing lines. Every lender has different hurdles.

mcevoyc

But how can it be logical to rule that someone is inadequate to borrow money when they can clearly see from income, from bank statements, from affordability that they are more than capable of carrying a mortgage. Even though I have paid numerous credit cards, loans, mortgages for over 30 years without default. Yet all these factors are ignored and are based on 2 yellow marks worth 20 pound over a 6 year period! That to me is not logical.

Anyway rant over, what does anyone recommend is the next best step. Try someone else? Apply in my name only? Mortgage advisor? Not sure if they would help??

amnblog

Without knowing your full case we cannot be sure, but it sounds like you have chosen a particularly tricky lender.

You could 'take a guess' again without another lender, but the same move would be to engage a competent mortgage broker to assist you.

There should be a number of alternate options out there for you.

Thrugelmir

mcevoyc wrote: »

But how can it be logical to rule that someone is inadequate to borrow money when they can clearly see from income, from bank statements, from affordability that they are more than capable of carrying a mortgage. Even though I have paid numerous credit cards, loans, mortgages for over 30 years without default. Yet all these factors are ignored and are based on 2 yellow marks worth 20 pound over a 6 year period! That to me is not logical.

Your response is perfectly normal. Borrowers take a different perspective to lenders, . Are you sure that the late payments alone were the real reason for the decline or just a contributory factor?

Newstart2014

We had the something similar with NatWest. Had been approved and then found I had gone into my OD twice, so to them showed reckless banking. Although bills etc were all good, and it was just after Christmas so down to the time of the year also. Had to wait 3mths of good banking, and then still refused. Broker was able to put us towards a more 'old school' lender, that looked at things a bit more independently. We completed two weeks ago. It was with Clydesdale.

mcevoyc

The reason the bank told me it was declined was due to a missed payment on either myself or wifes credit file. They dont seem top be able to give you any further detail. Not even which of us was the culprit. I therefore went through every account (of which there are many) on my credit file for every month for the last 6 years and there was one late payment 4 years ago. They said as this was so long ago it probably wouldnt be that so asked me to check my wifes file. We could see she had admittedly made 2 recent late payments on her simplybe account and thats it. £20 each time. They said that this was probably the reason but couldnt be any more definitive.

I just cant believe in this day and age that things are assessed in this way without any logical thought behind it. It baffles me.

Maybe I need to seek the help of a mortgage advisor who may be able to point in the right direction of a lender who has a bit more common sense and not just a robot!

Thanks for your comments to date

HCM

mcevoyc wrote: »

The reason the bank told me it was declined was due to a missed payment on either myself or wifes credit file. They dont seem top be able to give you any further detail. Not even which of us was the culprit. I therefore went through every account (of which there are many) on my credit file for every month for the last 6 years and there was one late payment 4 years ago. They said as this was so long ago it probably wouldnt be that so asked me to check my wifes file. We could see she had admittedly made 2 recent late payments on her simplybe account and thats it. £20 each time. They said that this was probably the reason but couldnt be any more definitive.

I just cant believe in this day and age that things are assessed in this way without any logical thought behind it. It baffles me.

Maybe I need to seek the help of a mortgage advisor who may be able to point in the right direction of a lender who has a bit more common sense and not just a robot!

Thanks for your comments to date

Lenders are unable to tell you exactly why you have been declined due to Data Protection laws, unless they have a copy of the credit file you have obtained personally in front of them.


I agree that a bit of common sense should be used. However, you have to agree not checking both of your credit files up front is a bit naïve and is something that annoys lenders when declining applications (your business sounds good from a commercial perspective).


As an underwriter, going by what you have mentioned I would look at your application. However, bear in mind that lenders do not only use 1 credit reference agency (CRA). Any lender I have worked with has used Experian as the main CRA with Call Credit in the background. The systems pick up data from both CRAs when making lending decisions. Maybe worthwhile checking other CRAs to be sure as some companies pick and choose which agencies they report credit data to.


Good luck.

mcevoyc

Before applying I checked all my credit files across Experian, Equifax and call credit. All very reasonable. Admittedly I never checked my wife but she has limited credit accounts against her name so thought nothing would be untoward.

To be honest even if I had checked my wife's before applying it would not have prevented me from continuing. Maybe the naive bit is not understanding that a couple of 'within 1 month' late payment of 20 quid would be your downfall. Irrespective of all the years I have borrowed and never ever failed to pay.

At the end of the day the reason for rejecting is purely down to this single matter. Affordability and financial situation all well within good grounds.

Harsh! Very Harsh indeed

Kimmykla66

We too have been stumped, and through no actual fault of our own!!!

According to Halifax, who we are already with and wanted to remortgage and borrow some more now we are out of our fixed term......We are not present on the electoral roll for our current home and wasn't on our previous!!
Now I am 100% sure we are and were as we have voted whilst at both addresses. So I paid for both of our Experian reports, we usually just use noddle to check once a month as its free....and guess what, oh yes- currently present at out current home and the dates show for the dates we were on it for our previous home.

Copies of the report sent...and underwriter has refused to change their answer! Stumped and very confused. Is there anyway I can rectify this without re-applying??

ferry

Have to agree with OP its all baffling. I often question why 6 years of squeaky clean credit history is required to obtain the best credit rates.
Seems a long time frame to prove yourself worthy.
Mortgage eligibility rules are costantly reviewed and changed with each provider having their own set of eligibility rules make you wonder how anyone gets a mortgage these days!