Declined Lloyd's AIP, with credit score of 986

ilecko

I am very confused, please help with some ideas. I applied for a mortgage, I am with Lloyds for 8 years, they handle all my finances, had an AIP last year but did not need a mortgage that time. I just applied again yesterday, and it was declined, despite no loans, any kind of credit arrangement, I am a civil servant with an annual salary, have more than 50% deposit for the purchase price, it should be a very smooth process. I cannot think of any reasons why it was declined. I talked to the bank, they checked everything, they said it was my credit score. I checked that with Experian, it is excellent, 986. Apparently I am on some kind of blacklist, they would not confirm the reason.
One suggestion was that my current address is a "bad" rated residential area, or maybe because I am EU national (all paperwork is in order)? Any ideas would be greatly appreciated, maybe personal experience? Thank you

[Deleted User]

Your credit score isn't seen or used by lenders, so it doesn't matter what it is.  Lloyds are referring to how they've credit scored you, not Experian.

You need to check your three credit files - and possible also CIFAS, if they referred to a 'blacklist'.  However, it sounds as if you have a very thin credit file as you say you have 'no credit arrangements', which would be a problem.

dimbo61

Time to find a local mortgage broker who can download all the credit reports on you and look at the big picture.
Maybe your job, maybe the amount your trying to borrow, maybe your residential status in view of britex.
Maybe something on your credit report which is not on Experian.
Maybe your address or maybe Lloyds are not really lending in your area.
Time to find a broker 

pearsforlife

It won’t be your job, the most stable income in the country at the moment and one that lenders always get behind due to the security of employment. It could be your nationalisation if your residency is complicated? Or you could be on a fraud database such as CIFAS or NH which will blacklist you from most credit lines. You need to get to the bottom of it and also having a Lloyds credit card may help you.

haras_n0sirrah

A no with 1 lender doesn't mean a no with every lender. Lloyds is rarely the cheapest so may be able to save some money as well.
Speak to a broker. If you don't have one a couple of us who post here are independent mortgage advisors. We are not allowed to approach forumites but are happy to respond to pm's. We will all have a signature identifying ourselves as mortgage brokers. Read the boards and see who you feel gives good advice and send a pm

Hannimal

Don't worry about mortgage broker being local - I use one I'll never meet in person who has been absolutely amazing and doesn't charge me for his work. I recommend finding a broker who is an actual person (as opposed to something like L&C) and have them help you out. It sounds like you shouldn't have a problem getting a mortgage, just that Lloyds aren't the right one. In the meanwhile, check what each of the credit agencies have on file for you. you can do that for free.

ilecko

I appreciate all of your answers, they were very useful. I checked other agencies, it turned out that on Equifax my credit score is only 340, while on Experian it's 986, how is this even possible? I checked CIFAS, no record was found, I have a Lloyds credit card that is paid each month, and my credit files are an average of 42 months old, my residence is not complicated at all, I am settled and a key worker, I really assumed that this is all good. Hopefully, an adviser will be able to sort it out.. Thank you very much anyways 

dunstonh

I appreciate all of your answers, they were very useful. I checked other agencies, it turned out that on Equifax my credit score is only 340, while on Experian it's 986, how is this even possible?

The numbers dont mean anything when comparing.  The various companies dont even use the same scale and the lenders dont see them and wouldnt take notice of them even if they could.   It is the raw data that matters.

muhammad_minar

Go to "checkmyfile.com". It will give you access to all 4 credit file agencies in UK. Its £14.99 per month after - BUT you can do what I did which is cancel immediately after seeing the free report. The report is very detailed and will tell you the data from each agency. Best way to know what went wrong with Equifax. You also might want to change your current account - there is no point in building a relationship with Lloyds for 8 years to then find yourself in this position. And finally - Lloyds are generally not very good for interest rates so it was probably never the best option anyways - a broker can find a lender that will suit your circumstances. BUT first see whats on equifax to know what went wrong