Mortgage denial

cam269

Hi,
My husband and I applied for a joint mortgage with Yorkshire Building Society online in Dec 2016 and we're accepted, so the application got rolling. Throughout the application, we have been dealing with a named person who has, quite rightly, wanted our details of salary, work etc. The process has taken 6-8 weeks so far.
Last week, we were contacted by a senior member from YBS stating that the application could not be processed as the type of mortgage we wanted, which was a combination of combining our debts plus having some money to spend on the house, could not continue as it was an online application and not face to face. She apologised that the person who was in charge of our application did not realise this could not be done as she was junior!!
We are obviously cross about this - not only has our time and effort been wasted but our credit search has been affected because YBS did a search back in Dec.
Do we have any grounds for redress?
We would like to apply elsewhere but now find our score has gone down and as a consequence we may get refused - through no fault of our own.
Thanks in advance
cam269

sultanabran

Ignore the score that the credit reference agency gives you. The lender doesn't see it. While too many searches in a short period of time can affect your ability to get credit, one search on your file won't be an issue. Not all lenders use the same credit reference agencies so they may not even see your Yorkshire BS search.

I would suggest though that you speak to a mortgage broker who can steer you towards the best lender for your circumstances.

You could file a complaint, it depends if you have the appetite for it or would rather concentrate your efforts on finding a mortgage. Have you been financially affected by the YBS mistake?

ACG

I agree with everything above.
Far too many people get caught up with the score. Every lender scores your application based on their own scoring system. The way I explain it to my customers is that the credit report only forms part of your score.

The credit report does not show how much you earn, what you do for a living (ie a professional may score higher than a shop worker with some lenders), how many kids you have etc. The lender takes the information from the credit agency and then combines it with the information on your application to score you.

xyz123

cam269 wrote: »

Hi,
My husband and I applied for a joint mortgage with Yorkshire Building Society online in Dec 2016 and we're accepted, so the application got rolling. Throughout the application, we have been dealing with a named person who has, quite rightly, wanted our details of salary, work etc. The process has taken 6-8 weeks so far.
Last week, we were contacted by a senior member from YBS stating that the application could not be processed as the type of mortgage we wanted, which was a combination of combining our debts plus having some money to spend on the house, could not continue as it was an online application and not face to face. She apologised that the person who was in charge of our application did not realise this could not be done as she was junior!!
We are obviously cross about this - not only has our time and effort been wasted but our credit search has been affected because YBS did a search back in Dec.
Do we have any grounds for redress?
We would like to apply elsewhere but now find our score has gone down and as a consequence we may get refused - through no fault of our own.
Thanks in advance
cam269

Are you not able to do a face to face application then?

cam269

Thank you all - you've put my mind at ease but I am wondering would it be classed too soon to reapply now? Or should I wait a bit longer?
Online application seemed easier and quicker (and cheaper) at the time - obviously not in our case!

kingstreet

This will tell you more;-

http://www.moneysavingexpert.com/loans/what-credit-scores-mean?_ga=1.201015214.1037400457.1461057248

and no, there is little point in waiting.

cam269

Thank you - I am also looking at switching current accounts as I have been with mine for several years and note there are some good deals out there. Would it be wise to wait until a mortgage has been agreed or does this not affect credit rating?

Royster82

Hi cam, yes I'd wait on changing the current account until it's all been agreed, I'm guessing there is no rush needed in changing current accounts, I'd just wait until you've moved in and first payment has come out, that's what I'm doing anyway.

AnotherJoe

Royster82 wrote: »

Hi cam, yes I'd wait on changing the current account until it's all been agreed, I'm guessing there is no rush needed in changing current accounts, I'd just wait until you've moved in and first payment has come out, that's what I'm doing anyway.

+1
Absolutely do not change your main account until you are moved and have made the first months payment.