AIP accepted then rejected

Chicane1992

Hi everyone,

My partner and I had an AIP with nationwide accepted 2 months ago. However we now have decided to up our price range by about 18k. This is still 60k below what we can borrow according to the in depth calculator. However the AIP was declined out right. Our credit file hasn't changed except for paying the usual monthly out goings. Ive had a pay rise as well since the first AIP. Could there be a reason for this? Its still well in our affordability. I got all 3 credit reference agencies and had a look at them. My partner had about 6 months of marks against her in 2016 by o2. Up to 4 on experian. This was o2 fault as they didn't close her account down. Would this cause the decline? It seems odd that the same lender would decline when they had already accepted. Will experian remove the markers? We have written evidence of o2 admitting the problem.

Thanks.

Richard_Pia

Has the LTV increased since the original application? If so, this would likely be the reason for the decline. The adverse may have been acceptable at a lower LTV, as the lender treats you as lower risk in lower LTV brackets.

It could also be that Nationwide have since tweaked their credit scoring system, but I have not heard of anything on this.

Some lenders can ignore mobile communications arrears, so even if Nationwide won't lend, there should still be alternatives. You could ask for the arrears to be removed, but it can take up to a couple of months for your credit reports to be updated.

Chicane1992

Thanks for the reply, the ltv has actually gone down slightly. Nationwide did originally give us an AIP 2 months ago. Seems strange that they would decline the second one, especially since they in theory would lend alot more.

Richard_Pia

Did you do the AIP online, or through a branch or broker? If you are set on using Nationwide it may be worth asking for an appeal. If you have evidence of the original AIP agreement - a certificate or such like - then this could strengthen your case. Providing a copy of your Experian report with the written evidence of O2 admitting fault could help as well.

Chicane1992

Thanks Richard, im not fussed who we go with if im honest, as long as the rates arent too had. The broker is a local independent. They were just as surprised as us. I have all 3 reference agencies and all 3 say the same about the late payments 2 years ago. Everything else is perfect. The late payment actually ran for 15 months! We had no notification that we had late payments until we had a letter about a debt collection agency possibly getting involved. Im guessing if its reading 3 and 4s on experian etc that its late payments rather than default? If that makes a difference. Its just abit of a shambles really? Of course im assuming here that it was the late payments that caused a rejection.

Richard_Pia

Yes, 3s and 4s wouldn't be considered a default. If your account was in default it would clearly state this on the report.

I can't imagine what else would have caused the decline given the information you have provided. It's certainly a strange one. I wouldn't be too disheartened though, as there should certainly be other options.

Chicane1992

Thanks Richard, just going to wait and see

Chicane1992

Just bumping the thread to ask a question. The o2 account was in areas for 15 months. Unknown to my partner until she had 10 odd letters dated a year previous turn up. The amount went up and down for some reason on the report, then was wiped off. Was only 40 quid to start with and peaked at 200. Would having lots of 4s and 5s be any better to a lender than an out right default? Question was on my mind and couldn't find the answer. Thank you