Aldermore declined us

georgia1993

So yesterday Aldermore declined us because the underwriter saw “credit churning” on my credit report. They also didn’t like the fact that I was living at home and my deposit was gifted and I hadn’t contributed towards it. I was not happy with this based on this decision but can’t do nothing about it, though they knew this from the very beginning. After speaking to many brokers most of them didn’t know was “credit churning” was and certainly didn’t think it was something that should have been declined.

we’ve now applied with Kensington and awaiting to hear 

ACG

I have never heard the phrase of credit churning, but I assume it means your are probably balance transferring cards and not really paying it down or something similar? 

To be fair, it is probably one of those things where you fit criteria but the case combined is one the underwriter did not like, it is hard to argue really as I can see their point. (I am not judging here) Look at it from the underwriters perspective, you have someone who is living at home with low outgoings, run up debt, not been able to pay it down whilst living with hardly any outgoings and relying on a gifted deposit. So when the bills start coming in for utilities, food, the mortgage, council tax, internet, tv license how will you manage... 

I assume there is an element of some unpaid bills also? Otherwise I am not sure why the broker has gone to Aldermore and Kensington? 

From experience, I dont think Aldermore were ever going to accept you, I would also expect a couple of other lenders to not be happy to lend, but you may find one or 2 who are.

georgia1993

There are no unpaid bills, no missed bills, credit is all paid up. The only adverse is my partners missed payments from 15 months ago 

ACG

georgia1993 said:

There are no unpaid bills, no missed bills, credit is all paid up. The only adverse is my partners missed payments from 15 months ago 

So there are missed payments then. It doesnt matter whether they were last month or last year. 

look at it from the underwriters position when you see a piece of paper and it says:
Lived at home and not saved up any deposit,
Has run up debt and is just juggling it around without paying it down despite presumably low outgoings, 
Has a history of missing payments.

It doesnt make a great read. They do not have an infinite amount of money, so they could lend that money to someone whose piece of paper look a little bit more appealing. I say this as a broker who specialises in adverse cases, if I judged people I would be out of business. But at the same time, I look at cases as if I were the underwriter and whether I would lend the money or not and from what you have said, I dont think I would - just being honest and trying to play devils advocate. 

RTC87

I imagine the credit card churn isn't the biggest factor here. It will be more you not having a credit history or proof o managing debt/bills and your partners missed payments. As someone else said, to an underwriter it doesn't look like a safe bet as you can't even evidence saving for the deposit as it is gifted. 

All you can do is try another lender but I would ask my broker why he went with Aldermore in the first place?

georgia1993

Hi, I have a credit history , my credit score is in good and my partners is in fair. Because our broker told us Aldermore are a specialist lender for adverse credit as my partner has missed payments from 15 months ago

georgia1993

ACG said:

georgia1993 said:

There are no unpaid bills, no missed bills, credit is all paid up. The only adverse is my partners missed payments from 15 months ago 

So there are missed payments then. It doesnt matter whether they were last month or last year. 

look at it from the underwriters position when you see a piece of paper and it says:
Lived at home and not saved up any deposit,
Has run up debt and is just juggling it around without paying it down despite presumably low outgoings, 
Has a history of missing payments.

It doesnt make a great read. They do not have an infinite amount of money, so they could lend that money to someone whose piece of paper look a little bit more appealing. I say this as a broker who specialises in adverse cases, if I judged people I would be out of business. But at the same time, I look at cases as if I were the underwriter and whether I would lend the money or not and from what you have said, I dont think I would - just being honest and trying to play devils advocate. 

Yes there are missed payments from 15 months ago from my partners credit file. My partner has his own home with 2 kids, since then they have been up to date. There are plenty of lenders who don’t see this as a issue aslong as it’s not within 12 months . There are no missed payments from my credit file, no late payments. 

And I asked for advice, not a lecture. There’s plenty of people who have made past mistakes that have CCJs, defaults, missed payments and live at home. 

MattMattMattUK

Credit scores and credit ratings are meaningless numbers created for marketing purposes, a bankrupt can have a maximum score and someone who has never missed a payment a low score. What counts is what is in the file, as others have said the issue is that you have missed payments, have not saved anything yourself and have debts, none of that indicates you are sensible and responsible financially.

You will probably need to knuckle down and clear your debts, save towards your deposit yourself and not miss any payments for at least another year to stand a reasonable chance.

georgia1993

I don’t have missed payments!. My credit file is in good. It’s my partners that has missed payments! Which is why we went with an adverse lender who specialises in adverse credit

mortgagetakingages

georgia1993 said:

Hi, I have a credit history , my credit score is in good and my partners is in fair. Because our broker told us Aldermore are a specialist lender for adverse credit as my partner has missed payments from 15 months ago

Good and fair means nothing. What matters is your history and it has already been explained why that would be a problem. 

Its not game over though but you need to be realistic that it's not all rosey.

MWT

georgia1993 said:

Hi, I have a credit history , my credit score is in good and my partners is in fair.

Nobody is trying to lecture you, just helping you understand how it looks from their perspective.

The credit scores mean nothing to the lenders, it is all about the story that your credit file tells.

Armed with that knowledge you can work on getting your file to tell a different story.