Low credit score but no adverse history

onyx911

Hi all, I am in the processing of moving house and applying for a mortgage. We last moved 11 years ago. The broker told us my husband has a low credit score and we don’t qualify for the Halifax mortgage she is recommending. She checked the credit files and said there is nothing adverse and no missed payments. She thinks it is to do with his available credit being very high, even if not being utilised (apparently £90k!). Had we known, he would have closed the accounts. I have been waiting to hear from her all day about other lending options. We are currently with Woolwich and never missed a payment and never took a payment holiday. 

I’ve heard some lenders will lend to people with adverse history so hoping our issue is not too problematic? We have a 55% deposit. 

Anyone experienced this? We will close the credit card accounts but currently have an offer accepted and don’t want to lose the house. We don’t mind paying a slightly higher rate for 2 years then switching. Do we have hope? 

[Deleted User]

You need a new credit broker. Your credit scores aren't a factor in lending and it's very worrying that she doesn't know this.  Lenders will only be looking at the data on your files.

You need a broker who will match your circumstances against the lender criteria.  High credit limits are very unlikely to be a significant factor in that.

haras_n0sirrah

The lenders look at the information on the credit report not the score. I would definitely speak to another broker. 

Thrugelmir

onyx911 said:

She thinks it is to do with his available credit being very high, even if not being utilised (apparently £90k!). 

How much is being utilised? Why does he have such a high amount of credit available? 

onyx911

Thrugelmir said:

onyx911 said:

She thinks it is to do with his available credit being very high, even if not being utilised (apparently £90k!). 

How much is being utilised? Why does he have such a high amount of credit available? 

None of it is being utilised. She said his score was low but there was nothing adverse on his file and said it must be the credit cards. He used cards a lot for personal expenses which he billed to employer and then paid off. Credit card companies increase limits over time. The Amex alone is £60k with no balance. 

FLB2796

I had exactly this with 2 brokers in July, they said that we had low credit score. My partner had an incorrect default removed from him credit file so we thought it might of been that not cleared off yet but once this had totally gone we was still getting the same outcome from the brokers. I did an AIP direct with Halifax and it was absolutely fine, our mortgage has been approved with no issues pending our valuation on Friday.
I had a month of non stop stress, we was quite limited to Halifax because of the way my partner is paid. I told our broker the truth and they understood we needed to do the best thing for us. 

I was also looking at all the things it could of been and started thinking it was out credit card balances or the utilisation being over 40% but then going direct we never got questioned about anything once I’d told them everything we had. 

onyx911

FLB2796 said:

I had exactly this with 2 brokers in July, they said that we had low credit score. My partner had an incorrect default removed from him credit file so we thought it might of been that not cleared off yet but once this had totally gone we was still getting the same outcome from the brokers. I did an AIP direct with Halifax and it was absolutely fine, our mortgage has been approved with no issues pending our valuation on Friday.
I had a month of non stop stress, we was quite limited to Halifax because of the way my partner is paid. I told our broker the truth and they understood we needed to do the best thing for us. 

I was also looking at all the things it could of been and started thinking it was out credit card balances or the utilisation being over 40% but then going direct we never got questioned about anything once I’d told them everything we had. 

Wow that’s very interesting. We were thinking of doing this direct with our existing lender but our situation is unique too as we are both self employed (seperately) And without even one guaranteed income it can be a lot more difficult hence trusting a broker.