Declined - Credit score and lending policy

Rob_Robertson

What does it all mean?

We've just been through the process twice with a lender via broker - we passed all initial checks and the usual affordability (we do well but have a bit on c cards but we found the house and had a deposit of 5% so went through and it was fine, lots of money in account each month.

The first time we've wasted a load of time messing about, documents, then another, then this, then that after sending a load in.... They then threw the application out as it went over the time period.....

It went back in last week, credit scored etc, affordability etc (though they didn't search us again) all ok through affordability - sent more proof of addresses and the usual figures and the like...fair enough..... We waited...

Decline today...... Doesn't meet current lending policy and failed on credit score, I've called broker, on hols but they're looking at it tomorrow and speaking to lender to find out specifics.

We have no adverse or anything like that, no overdrafts, no missed payments of any description, however we have credit cards (c. 75% of utilisation of limits on cards) which is higher than we thought...... Too high?

Does anyone have any idea re: what they'll want us to do? I have a fair amount of money to pay off the cards, I've just not done it as it costs to draw (£) out etc. But I can do it, higher deposit even.....

Any advice greatly received...

Contemptuous

You'll probably need at least a 10% deposit.
95% mortgages are a higher risk to the lender and so they want the applicants to have spotless credit scores in most instances.

Rob_Robertson

We suspected this also....

csgohan4

do you pay your credit cards in full every month? If not this will affect affordability also. Not to mention the eyewatering interest rates

MortgageMamma

Which lender is it? Do you know what part of the policy you failed on?


Hang in there and let your broker try to sort it out, sometimes brokers can appeal a case with a lender and it will go through. There is no point speculating on here until you have facts of why its not gone through. If its something that could have been prevented or the broker should have known get a second opinion.

Rob_Robertson

Bank - decline.

MortgageMamma

It would be wrong to make any assumptions based on that, so press the broker to get more information. We can't really ask you for too many details on this forum due to your own confidentiality/security, so best have it out with the broker/lender.


One thing I will say though is that Santander used to be a brilliant lender but I've fallen out of love with them recently, in my opinion they are just a little bit too up their own backsides and turn down quality cases for silly reasons. A friend of mine (broker) did 3 cases with them last month, they all met the published lending criteria and some of the reasons for declines that were given - well - lets just say you couldn't make it up. You may want to look at other lenders, its probably not your brokers fault.

Rob_Robertson

Thanks, I'm happy with the broker and they've done their bit. But they're going to be on the case today as they're both open to try and yield some info.

We have further cash available to pay down debt levels should that be an issue, and could also go to 90% LTV too if we had to.... It's just frustrating that we've been in the cycle for such a long time, only for this to happen at the last.......

Rob_Robertson

Is one able to increase the equity stake? We can put a bit more in, but does it have to be in 5% increments? Can you for example put another 2.5% in?