Mortgage declined due to old credit score ???

Tomb89

Hi . New to all this .
Me and my gf sold our house April the 5th . We had some debts 2 cards 2 loans. We payed them off on the 8th April. We moved in with parents . Applied for a new mortgage on the 11th April. Passed first checks . Credit search . Had to wait till 1 week ago for relevant documents bank statements etc with new address on . It went to final check on Friday the 17th of May and declined due to (Hidden) debt . They have classed it as hidden because it wasn't on the application form . They are using the credit search thay is 5 weeks old to underwrite my documents ???? I've checked my score and the cards and 1 loan have gone but I've still got one loan of 7k on there . Mortgage advisor has asked me to send him up to date credit score for me and my partner and the closing letter for the loan . I sent all that last night . We are near to exchange and the only thing holding us up was the change of address but now there's this ??? Has anyone had anything similar .??? They won't wait for us to re apply .

BoGoF

When you say score you mean report - the lender isn't interested in your credit reference agency score.

As you have discovered it takes some time for credit files to update, it was optimistic to think debt paid on 8th April would have updated your file.

Tomb89

Yes I know that but we went with a lender that doesn't take into account old debt as it is payed off ?? It's been nearly 5 weeks now and my report has updated ??

BoGoF

It's not updated if the £7k loan is still showing?

And they may use a different CRA from the one you checked. It can take up to 8 weeks for your files to uodate.

Tomb89

Sorry what I mean is I have the proof in the closing statement sent to my house that the last thing left on my credit report has been payed . What I don't understand is why they say not to include any old debt on the application form and then Flag it up on the final stage . They haven't said no your not having it now but I just think it's a bit strange they didn't ask about any debt payed off that still mite be on the credit report.

BoGoF

As far as they are concerned 'old debt' will be debts that don't show on your credit report it's unfortunately a timing issue for you but as I said it was highly unlikely that all of them would have been updated in time.

Tomb89

Ok thanks . I'm guessing with the document I've sent them that will be enough evidence for them ? It's the mortgage broker that hasn't put it down. ?

BoGoF

I would think so. Hopefully goes through soon for you.

Tomb89

They choose there time to call tho . 4.10 on a Friday afternoon . Where the start of the chain aswell . Would hate to let people down . We would of waited if we'd of known this .

ACG

There are a few lenders who are more anal about this than others, I think Nationwide, Santander and Platform are the worst for it.

Follow your brokers guide, he/she will be liaising with the lender and will tell you what they want or need to get it over the line.

Blackbeard_of_Perranporth

I moved after uni twenty years ago. First mortgage said was refused, and some shyster from Ken offered an extortionate rate.

On the high street there were about ten building societies. I avoided the first one, hit the second and got a decent rate. I had to turn down applications at three others.

So I suggest you use your legs and Knick on doors to get your mortgage.