FTB mortgage problem - urgent advice pls

1399steve

My partner and I are trying to buy our first home and have run into problems with our mortgage. Our combined salary is £58k and we both have clean credit histories.

We found a house in July and had a mortgage agreed for £148k with Bank of Ireland. This purchase fell through because of significant issues with the survey.

We have recently found another property, cheaper than the first one and had an offer accepted. We applied for a mortgage of £136k (95% LTV) with Co-operative Bank, assuming that as we had no issues getting a mortgage for a higher amount that we would have no problems this time. The application has been declined.

My GF has checked her credit rating with Experian and when she rung them was told that Bank of Ireland had done 7 searches on her file for our previous mortgage application which has left a big footprint on her file. I am assuming this is also true for me. We have also recently opened a joint bank account which left a search on our files.

Co-operative Bank have told us to send in details of our credit files and they will review their decision.

Is it usual for such a large number of searches to be done?

Is there anything I can do to help get a positive outcome here?

If the Co-op Bank don't reverse their decision we will have another footprint on our file and will have to tell future lenders that we have had an application declined. How long will it take for our credit files to have recovered sufficiently to get a mortgage in the future?

Thanks!

17Dave

Hi Steve
Sorry to hear about your problem.
It is unusual for more than one search per person to be done unless the timescale is extended for any reason, even then 2 should be the max.

I have come across this with some advisers who submit Decision in Principal requests to several lenders. Silly as this can effect your credit rating - as you now know.

If you explain the situation to the Co-op they may review their decision if this was the only reason for the decline. I have done this in the past for clients successfully.

If you do go elsewhere in the near future you are required to disclose a declined application. Generally searches can be a problem for up to 6 months. [A company looking at your record will wonder if any searches resulted in a new credit account somewhere.]

Hope this clarifies the situation.
Do post back with the Co-op decision.

Good Luck

1399steve

Thanks Dave,

Is there any mileage in speaking to Bank of Ireland or Experian with a view to getting the searches removed from our files if they have been done wrongly?

herbiesjp

Have you got copies of both your files? What was the score on the file?

Having had those searches done may have impacted a little, but they are now 5 months old, or nearly, and should not really be troubling you.

You can try and get some of them removed - but I'm not sure why Co-op are being this picky (maybe credit cruncg scenario) as they should be able to tell it is from one lender as opposed to 7 searches from 7 different lenders which I think would be more of a concern to them

poppy10_2

Why should a search lower your credit rating anyway?

1399steve

Just spoke with Bank of Ireland and they say that they would only ever do one search for a mortgage application, which is not the case according to Experian. When I asked BOI if they could remove the excess searches they essentially said 'nothing to do with us - you need to speak to Experian!'

This is really bothering me now as my credit rating which has been fine for my whole life appears to have been severely damaged through no fault of my own. Plus it looks like I might lose the property I have offered on.

Anyone else been in this position or got any advice?