Mortgages - hard credit searches

pepperpop

Hi

Was declined remortgage for debt consolidation with accord (hard credit search done), I think its because we are close to our limits on credit cards that we plan to consolidate. My broker says not to worry he's put an application in elsewhere now and we are waiting a decision. I'm worried that if another hard search is carried out and we are declined again that totally stumps us because it will show 2 hard searches on our credit file. Can anyone offer advice on this please I searched the internet endlessly and just keep getting conflicting advice (also no hard search showing up on noodle only soft but credit score shows hard search). Thanks

kingstreet

We can't answer this.

It's impossible to say as we have no way of judging the overall strength of your application.

It would appear to be time to trust your broker's judgment.

pepperpop

Thanks yes understand I probably need to put trust in our broker. Its dragging on a bit and we are really just trying to work out what are options are should we be declined again.

cooltt

pepperpop wrote: »

Thanks yes understand I probably need to put trust in our broker. Its dragging on a bit and we are really just trying to work out what are options are should we be declined again.

You are entitled to know exactly what the lending criteria is of any lender before you submit an application to them. This information is usually buried on their website but it is there.

It will talk about how much existing credit they will consider, how long they like to you to on the electrol role, what they think about deposits from here or there, what product they are likely to offer higher risk applicants etc. It's a great piece of information, always hidden but must be legally provided. Doesn't tell you everything but when you apply it to your circumstances it gives you a good idea if you are the type of customer they want.

pepperpop

cooltt wrote: »

You are entitled to know exactly what the lending criteria is of any lender before you submit an application to them. This information is usually buried on their website but it is there.

It will talk about how much existing credit they will consider, how long they like to you to on the electrol role, what they think about deposits from here or there, what product they are likely to offer higher risk applicants etc. It's a great piece of information, always hidden but must be legally provided. Doesn't tell you everything but when you apply it to your circumstances it gives you a good idea if you are the type of customer they want.

Thank you I have been looking at them there appear to be some that lend to people with CCJs and DMPS - we have none of that but we have high credit card balances which are all paid and up to date - just not reducing due to high interest- the lender the broker is currently trying underwrites each case individually - I've read so much now I'm so confused. We are just trying to put a plan of action together in case we are declined again.

DW74

Accord seem to be picking and choosing who they approve mortgages for so I wouldn't let this dishearten you. Generally most mortgage providers will do a soft check to get an AIP and only do a hard check at full application stage. It doesn't matter how high your credit card limit is if you are paying it each month and have no late or missed payments your credit score will be decent it will come down to being able to afford the mortgage and credit card payments as long as they think there is a low risk you would default on any you should have no problem. Have you tried Halifax? We were declined by Accord through a broker who was very slow so I went online myself and got an agreement in principle from Halifax two weeks later got a full offer through and we now have our keys all within 8 weeks. My partner and I both have defaults but got accepted due to affordability..may be worth a try, Best of luck anyway I am sure it will work out fine.

pepperpop

Interesting... The credit card debt is close to the limit on our cards and combined with the loan we have basically is equal to our annual income total. The plan is to repay all of this from the debt consolidation mortgage, freeing up around £1000 pm then we can overpay on the mortgage too. All payments on the credit cards and loan are up to date no arrears or late payments. Out current ltv is 59% additional borrowing would take us to 78%. We did do an affordability check with our current lender last year but didn't meet affordability - since then our product ended and we got a better rate with our existing lender reducing our repayments by £150pm and also we are doing a voluntary termination of our PCP car which will free up another £300pm.
We approached a broker to find the best lender for us, will have to wait and see what the decision is. He said there is 1 other lender he could try (I was surprised not more options for us?) but I've checked the lending criteria of that lender and is says "if our total unsecured debt is equal to or more than our annual salary you would be declined" so I'm surprised he has said he would try this lender next and its the only one as after doing some research I think there might be others?

amnblog

Are you saying your debt is equal to, or surpasses your income?

pepperpop

Hi we have £12000 joint loan, £9800 on 1 credit card (in hubbys name me cardholder too but comes up under hubby) other credit card debt of £28000 (comes up as in my name and we are both cardholders). so basically about equal to our annual income - yes i know its a lot! Being crippled by high interest on cards not sure in anyone else will lend to us if we are declined this time. Any advise much appreciated

fewcloudy

pepperpop wrote: »

Hi we have £12000 joint loan, £9800 on 1 credit card (in hubbys name me cardholder too but comes up under hubby) other credit card debt of £28000 (comes up as in my name and we are both cardholders). so basically about equal to our annual income - yes i know its a lot! Being crippled by high interest on cards not sure in anyone else will lend to us if we are declined this time. Any advise much appreciated

Did you mean £28000, or £2800?

pepperpop

£28000 - you read it right