Refused Mortgage even though credit history is good

Cucullan

My wife and I have been trying for 10 years to get a better rate mortgage and got refused a couple of times on hard searches, however, we are reluctant to allow any hard searches for fear it will go against us but the soft searches are still getting us refused. I have checked the usual credit reference agencies and these suggest we have good-excellent rating, we have over 60% equity and both work full time and have never defaulted on our mortgage. We feel we are being held to ransom and cannot get a reason as to why. Is this something the Financial Ombudsman could help with?

haras_nosirrah

Are you going direct to lender or have you got a broker working on this. A broker should be able to look at your credit file and place this

[Deleted User]

Cucullan wrote: »

Is this something the Financial Ombudsman could help with?

No. The Ombudsman doesn't get involved with lending criteria and can't get you a mortgage.

As above - use a broker. It's about your credit files and circumstances, not the CRA ratings.

ACG

Have you had a look at your credit reports?
As above, is a broker helping you with it or are you going direct? Presumably you are being declined at DIP stage rather than at application stage?

Who are you currently with?
Who have you been declined with?
Have you ever had any bad credit?

I am just wondering whether you had defaults say 10 years ago with say Mint credit cards and you are now being declined by Natwest and RBS for example - they are all part of the same group and may have internal markers against you.

Neutrinno

Cucullan wrote: »

I have checked the usual credit reference agencies and these suggest we have good-excellent rating,

Ignore the credit score, it means absolutely nothing. Have a look into your financial history on the reports; do you have any missed or late payments? CCJ's? Defaults? Payday loans?

As others have already said,you will benefit from using a broker. Get a copy of your up to date credit reports and let them have a look at your options.

Thrugelmir

Cucullan wrote: »

cannot get a reason as to why.

The reason is in your own credit profiles. Without knowing the full facts impossible to comment.

lookstraightahead

Could be absolutely anything from not having up to date addresses to not being on the electoral register to having too many credit cards / not enough financial history, debt, late payment, wrong info, financial links to other people, affordability, incorrect spelling, too many searches, what type of spaghetti you like (sorry not the last one although I'm sure if it could be added it would). You need to really look at the records held on you very closely and try to ensure that you meet the lending criteria.

foxy-stoat

Cucullan wrote: »

My wife and I have been trying for 10 years to get a better rate mortgage and got refused a couple of times on hard searches, however, we are reluctant to allow any hard searches for fear it will go against us

It hasnt helped so far....not sure why you would not allow the lender to carry out a hard search.

If you have not managed to get a better rate for 10 years then your either on a very good rate or you are not asking the right lender. Go to a broker for advice.

Cucullan

This is the most likely reason, as yes, we have had bad credit in the past but nothing that should be visible, however, one individual made a few calls and suggested it was an underwriter that was linked to multiple providers that were causing this issue. I bank with Natwest and our mortgage is with Santander. Affordability is not an issue as the value of the house is well over double that of the mortgage and we are both in full time employment. Our credit reports are clean.

Thrugelmir

Cucullan wrote: »

Affordability is not an issue as the value of the house is well over double that of the mortgage

That's not affordability. Security for the debt is taken as a given.

Affordability basically.

Multiple of Income vs Borrowing required
Interest only or repayment mortgage

Impacted by:-

Number of Dependents
Financial committments - credit cards, loans, child maintenance
Nature of employment

Prior credit history. Slate might be wiped after 6 years. Finance houses may not forget ever though.

amnblog

Most likely:

Your details are not being pulled up correctly by the Lender's systems for credit score.

Because of confusion with names/spelling or address/address format

Sounds like a job for a Broker to me.