Declined for a mortgage due to financial association

sacha1dog

Hi,

Looking at all 3 CRF's, my credit "rating" is showing as between excellent down to 3/5 with noodle.

the main factor seems to be a late payment to a small credit card balance 5 months ago, fair enough. all other credit histories are fully up to date and clear. I am also using a reasonable amount of my available credit.

Natwest have used Equifax, which is showing as excellent. However, my mortgage applicationwas declined, they say, due to a "serious/CCJ type" issue on my file. The only thing that I can think of, is that an ex partner, who moved out 3 years ago, defaulted on all of her credit after moving out. She is shown as a linked financial associate, even though we never had any joint credit.

Could this be it?

ACG

Its very difficult to answer that. It is possible it could be declined due to financial associates, more so if any of those credit commitments were joint as you would be seen as jointly liable.

But we only have your post to go off so it is difficult to say what it is or is not.

DracoNoir

Very possibly, I had similar issues with a previous tenant at my current property with no actual connection - she was just the last person to live here - and our broker apparently had to work very hard to disassociate us with her in the eyes of the lender. You need to get onto any and all CRF's and get them to remove the associations with your ex-partner.

I'm not sure what proofs you will need to offer (assuming no divorce) and it will likely take a while after that to get the records updated.

sacha1dog

Thanks. I also notice that the last date that the associations were updated was in 2005/2006. Shouldn't these automatically drop off the file anyway?

phillw

sacha1dog wrote: »

Thanks. I also notice that the last date that the associations were updated was in 2005/2006. Shouldn't these automatically drop off the file anyway?

I'm not sure if they ever do automatically drop off. You can ask for them to be removed. You shouldn't have ever become financially linked unless you had joint credit.

https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml?forward=gb_elearning_credit43
http://www.experian.co.uk/consumer/faq/AR3.html#q1016

I'd ask for written proof of the serious/CCJ issue from Natwest. Including the date, who it was to and the value. If it was really nothing to do with you then they have to help you figure out why you have been declined. It could be due to identify theft for instance.

MortgageMamma

Natwest won't provide you with details of a third parties credit glitches whether you are associated or not its a breach of data protection.


You have to apply to each credit reference agency to manually disassociate yourself from the problematic person and you can only do that if you are genuinely no longer associated with them.

All may not be lost on your mortgage though, speak to a broker to get professional advice.