Mortgage and loan refusal

Libbee49 · 18 July 2017 at 9:45PM

My husband applied for a mortgage with HSBC. The advisor said he couldn't see a problem with it. He was refused on the basis of his Experian report stating that he has had too many searches on his account. On checking he has 3 since June, 2 by HSBC and I by Sainsburys who also refused him with a joint application with his sister in law for the same reason. There is nothing before that. His score is over 900 and his report is good. We have 100% equity in the house and about £10000 in debts which we want to clear but just cannot get a loan or a remortgage. I have a CCJ on my report which is totally annoying because I stood as a guarantor for someone who didn't make the payments so we don't use me on an application. We are at a loss of what to do. Going through a broker or any of those advertised about helping is a no no. Their APRs are scandalous. The bank has said to try again in a months time but the situation will still be the same. Has anyone got any ideas please. All we want to do is clear our debts.

glosoli · 18 July 2017 at 9:58PM

I don't know what you mean about going through a broker is a no no as the APR's are scandalous, they don't provide finance, they apply to lenders and often the rate is actually lower than what you get if you were to approach a bank directly (in reference to mortgages). So rather than waste any more time on applying to lenders directly, you really should try and use a mortgage broker and provide them with the full information of your histories and what you are looking to achieve.

HSBC / First Direct for example are a relatively choosy lender, and if you had been provided with proper guidance would know that that was one probably to avoid.

cjmillsnun · 18 July 2017 at 10:33PM

You want to clear debt by taking on more debt. Lenders may not like this.

Is the debt on a card and the card maxed out? It will count against him.

Do you have a credit association with him (a previous mortgage or loan in joint names or even some utility accounts in joint names will provide this - I have an association with my wife because our electricity and gas bills are in joint names and the company involved records the account information on both of our credit files. Any association will mean that the credit scoring will take your credit file into account as well. Which may well have highlighted the CCJ.

glosoli mentioned HSBC are a choosy lender, and this is true. I bank with First Direct and won't approach them for a mortgage as I know I'll be declined.

I won't recommend another lender, however having recently gone through an application there are others on the High Street that may be able to help. Perhaps it is worth doing an agreement in principle on other lender's websites (make sure they do a soft search that won't show up as a search to lenders)

Not all brokers are bad. I've personally had a bad experience with one, but one bad apple does not represent them all. I'm sure a good whole of market broker can find something very competitive.