Mortgage Declined Bank of Ireland

leighlad86

Hi all, long time lurker first time poster. We currently have a mortgage with the Halifax and are looking to move to a bigger home. We have gone through a broker (l&c) who recommended an app with BoI. Today however we found out it was declined. Had an AIP with l&c and I think it went as a full app to BoI. It was declined due to credit file. My partners file is classed as very poor on Experian. She had a couple of missed payments a few years ago but nothing recent and no defaults, ccjs etc. My credit file is excellent but I have some unsecured debts. We have about 30% deposit. We were looking to use some of the equity from the sale to clear most of the unsecured debts but I'm worried now we have been declined we won't be able to get a mortgage at all. We had no issues when we remortgaged 2 years ago with Halifax she we just go back through them or trust l&c to do the right thing?

Thanks in advance

ACG

Being declined by one lender will not prevent you getting a Mortgage elsewhere, but it is important to find out why it was declined - is there a specific reason or was it declined because of credit score (ie as soon as the submit button was pressed) - before you apply elsewhere.

Im not sure BoI are really the best lender when there are late payments. They offer good rates but they are quite strict when it comes credit scoring.

leighlad86

From what l&c said it was submitted on Friday and declined today as it didn't meet the criteria. They said specifically credit scoring and the late payments on my partners file. L&c now have a copy of mine and my partners Experian report so hopefully they can recommend the right product but I don't want another decline if they get the wrong provider. I have never been in this position before and it's nerve racking as everything else is in place bar the mortgage.

leighlad86

Just to add, the missed payments were on the mortgage 3-4 years ago and it went to 3 months behind. This and all other missed payments were caught up straight away and there have been no missed payments within the past couple of years. My wife still has a large overdraft from her student days as well as a loan and a small cc all unsecured totaling 10k. We were looking to use some equity from the sale to clear her debts completely. I still haven't heard back from L&C and i am wondering if its time to consider adverse mortgages from precise, kensington etc? or if there is a possibility of getting a prime/near prime mortgage?

Thanks for reading

ACG

There was no way Bank of Ireland were going to accept it.
But I think that is a good thing, at least you know where the problem is and it was the brokers poor choice of lender which is why you were declined (in my opinion).

I would suggest finding another broker, one who is not just going to choose the cheapest deal but will actually do their job.

leighlad86

i have asked for local recommendations via friends so hopefully i can find a good one. Based on our circs would you think high street isn't an option?

ACG

I would not rule it out, but I think the options are a little on the slim side so there is a strong possibility the rate would be a little higher than normal for 2-3 years.

csgohan4

this is what happens when you use free services based on commission. I am surprised they didn't even request a copy of your credit reports from all the CRA's BEFORE application.

A competent broker would have done this and matched you to the appropriate lender. Schoolboy errors it seems and wasted a credit search on your file.

leighlad86

Lesson learnt and wont be making that mistake again. Thanks for all your advice so far. Its not a position we have been in before as i we always gone direct through Halifax for the mortgage and never used a broker. I went to L&C thinking it would be better but in reality as you say its resulted in a wasted search on our files.

ACG

I have some first hand experience of L&C with a bloke who is buying my house. I am not impressed, they are so slow - it makes me realise how much I actually do. Literally nothing happened for the person buying my house for 3 weeks. I had to jump on the phone and give them a rocket before they actually pulled his finger out and chased for updates.

They also convinced him to use their solicitors (presumably some kick back there?) so the person buying my house has one solicitor for the buyer of his house and a different solicitor for buying mine...all so they can earn a few extra quid.

I never had anything against L&C personally, they are what they are. If they are happy to work for peanuts thats their problem but I have now seen first hand they are slow and they make up for their lack of fees elsewhere.

Thrugelmir

leighlad86 wrote: »

My wife still has a large overdraft from her student days as well as a loan and a small cc all unsecured totaling 10k.

You said that you also have some unsecured debts. Lender may have detected that the total balance you are both owing is progressively increasing. Suggesting that you are spending beyond your means. Consolidating debt in such circumstances if it is the case. Poses a risk from the lenders perspective.