Mortgage application failed at credit check - advice please

ACG

Assuming it was settled over 12 months ago, you should have a few more options than if it were settled more recently.

chanz4

need to also check the help to buy criteria some don't lie adverse

AS123

Thanks for your replies - will discuss with broker. Default is 4 years ago now so hopefully that on our side but as mentioned need to see how help to buy fares in lieu of new information.

Will post back to let know what happens.

amnblog

The broker should have picked this up before you went to Virgin Money.

Use an alternate broker and expect to pay for someone who knows what they are doing.

This lending is in all probability placeable if you use the right channels.

AS123

Update:

Have been to broker and explained the situation and asked his advice re: sorting this problem out. He has come back and stated that we should use Halifax (We had a decision in principle with them initially) My belief with the decision in principle was that it was little more than an ID and affordability check, he however assures me otherwise.

He states that he has applied for a decision in principle and informed them that there is a default in the credit history, he states that the decision in principle would hav ebeen made upon the basis of current experian reports and that this is likely the best opportunity for us. As such he recommended proceeding to full application. I have done a little reading about these Halifax decision in principles and they don't seem worth the paper they're written on. One extra thing to consider is that when we initially chose our first choice lender he stated that Halifax were a no-go due to the fact that they were over exposed on the development site - he states that he has now spoke to them and they are willing to take one more application. I hope that this advice is sound, am a little worried about the worth of the decision in principle as well as going to a high street lender after 2 knockbacks.

Any thoughts?

Another thing - advised there is a £3500 survey fee that is refundable upon completion, this seems incredibly excessive. The obvious concern here is that the mortgage gets knocked back but after the survey has occurred thus meaning the £3500 could be lost. I asked him about this and he sugggested it very unlikely due to the fact that decision would be back in a couple of days (he didn't have time to submit application until tomorrow morning) and survey wold require booking in. Anyone any experience of this sort of arrangement?

Any thoughts welcomed.

Thanks,

AS

ACG

£3500? Do you mean £350?
Unless the property is for £2m plus that seems very wrong - https://www.halifax.co.uk/mortgages/mortgage-information/valuation-schemes/

As for the over exposure - you would assume the broker has checked this. Why would he submit an application knowing it will get decilned due to over exposure? Presumably there are no upfront fees to the broker? ie you only pay based on results.

kingstreet

chanz4 wrote: »

need to also check the help to buy criteria some don't lie adverse

Some what don't like adverse?

HTB Equity Loan only has an affordability calculator. You can get a mortgage with Kensington, Aldermore or Precise on HTB Equity Loan due to adverse credit and provided you satisfy the Government's HTB Affordability calculator and get the mortgage, you get the loan.

AS123

Payment is only upon results however I am concerned at the survey fee, that it is refundable yet so high makes me question whether it is set up to take money from those that are not accepted for a mortgage. It is certainly out of line with those on the link you have sent. Property is £310k.

amnblog

Sounds like you are confusing your Broker's fees with the Halifax fees.

Halifax will charge £500 for standard valuation on a £310,000 value property assuming there is no free valuation offer on the product.

Is your Broker tacking on £3,000 to buy himself some sweeties?

SeagullFTB

We were initially rejected by Nationwide as we failed their credit check. Our broker then applied with Halifax and we received a full offer in less than two weeks, so there's still hope. It's also worth noting that different lenders use different credit agencies to carry out the checks, and different agencies show different results. My Experian rating is 'very good' but my Equifax one is 'poor', because it shows a couple of old accounts that don't appear on Experian. Halifax only use Experian I believe.


We paid a valuation fee of about £400 (cant remember exactly) to Halifax for a £270k property. Your figure of £3500 definitely doesn't sound right.