Mortgage declined - help

Daybyday

Hi all

We've had an offer accepted on a lovely houses which we are buying with a 5% deposit. The mortgage application has been declined because of something on our credit report... A credit card which the report says wasn't paid five years ago. We have a good income and can afford the mortgage and our credit rating is approx 1750 out of 1998 between the two of us so it seems pretty harsh that we've been declined.

It's going to take up to 2 weeks for the bank to look in to the issue to find out if its a mistake. They won't even let us pay it off yet....

My question is, what do I tell the seller? There's no chain so we were hoping to move fast. Have a solicitor instructed but haven't paid the fees yet. Should I tell the solicitor and seek advice from them?

I'm so lost 😞

Mortgage_Adviser

Don't tell anything to the seller or the ages. It is nit in your benefit to tell them anythibg is wrong in your application.
Your credit ratings are irrelevant. Especially combined.


When one person has adverse credit history the lender will go with the situation of the worse credit applcant.


Have you show your broker your credit report prior to making the application? What is he saying?

Thrugelmir

How did you end up with an old unsettled credit card debt?

haras_nosirrah

have you gone direct or have you gone via a broker?

csgohan4

A good lesson for those reading in the future, always get copies of ALL your credit reports before applying for a mortgage to ensure nothing comes in later as a problem

[Deleted User]

Why didn't this come up on the Dip? Presumably that was done prior to ffering on the property?

Daybyday

Hi all

Thanks for the replies. We are first time buyers and have saved so hard and made so many sacrifices to get here. We are quite upset about it so please be kind.

The mortgage advisor didn't tell us to check our credit file before. It was a dip that he did which was refused. He's trying another lender.

We think the bank might have made a mistake but it's going to take them two weeks to look in to it, which feels like a life time.

Thanks for the advice about not telling the seller or the estate agents yet.

If anyone has any more helpful advice or can provide some comfort with their own successes all would be gratefully received. And yes, I know just because one person managed it with a default doesn't mean we will...

Daybyday

Yeah the broker asked to see it after contacting the bank...

Yes saying our options are limited but is trying another lender.

Daybyday

We aren't sure. The bank initially couldn't find it on their system so perhaps its a mistake on their part. We are responsible with money so it seems strange

MovingForwards

Who did the broker try a DIP with?

There are mainstream lenders who will disregard some aged adverse issues.

Is your broker an independent broker? As brokers usually ask to see credit reports as part of their factfind and to ensure they place you with the right lender.

BTW, you haven't been declined for a mortgage as a DIP isn't a mortgage application.

murrays2

Change broker, someone who has past dealings with adverse credit.

There are banks who will ignore one adverse account. Doesn't bode well for this broker, particularly when he didn't advise you to check your reports beforehand. If you can't get the basics correct...