Mortgage Declined - credit rating agencies discrepancy

umkskl

Hi All,
Looking for some advise on a weird case.
Halifax recently declined my mortgage application and via/broker asked us to look at checkmyfile. 
Apparently checkmyfile gets data from all different credit agencies. So I went ahead, and checked report on checkmyfile and found a discrepancy between experian and equifax reporting. A credit card which was paid off and showing as Settled in 2018 (by experian) still shows as un-settled with a balance of few hundred quid on it (by equifax). 
Now here is the interesting bit, equifax is returning status for this un-settled account as NR (Not reported) each month. So apparently, this is still not like a missed payment or a default. Could this still be counted as the reason for decline ? 
I have now raised a case/dispute with equifax on incorrect reporting of a credit account. And they have said they will contact the data supplier. But this process can take few weeks. 
Other details are:
I was putting 20% plus deposit and earns over 75K. All other markers on credit report all OK. total credit card utilization all below 25%. no new credit account opened in last 3 months.
Please do share your experiences/opinions. Many thanks for looking into this.

K_S

@umkskl NR is not usually an adverse marker. I'm assuming you've sent a copy of the checkmyfile report to your broker. Was it a decline at DIP stage or after submitting a full mortgage application? What was the reason given by Halifax for the decline as per the broker?

umkskl

K_S said:

@umkskl NR is not usually an adverse marker. I'm assuming you've sent a copy of the checkmyfile report to your broker. Was it a decline at DIP stage or after submitting a full mortgage application? What was the reason given by Halifax for the decline as per the broker?

Yes I have sent copy of checkmyfile to broker and he was also surprised since otherwise I have a very clean credit report. It was at DIP stage. According to broker, the lender is not disclosing any further info/reason why it got declined. And looking at the report this is the only discrepancy I can think of that may have caused underwriting software to decline application. 

K_S

@umkskl If it's at DIP stage then it's quite likely to be credit history or other beureau related.

Any previous history of adverse with Halifax or other lenders in the LBG group, any business adverse history, any CIFAS markers etc?

So the broker said the DIP decline didn't give any reason at all and did they try to find out more information from the BDM/lender? That's a bit unusual. Not even a generic 'credit score' fail?

Any other properties in the background, etc?

If the old closed account is showing an unsettled balance, that could well be a contributing factor.

I had a similar case recently with an incorrect address format on one credit agency file which was taking ages to resolve and causing a 'credit-score' DIP fail any lender that used that agency. It isn't ideal but had to go down the route of placing with a lender that doesn't use them to get it over the line.

Thrugelmir

Lenders don't actually use the credit reports you see. They'll use the 72 months of underlying data. Something has tripped their internal algorithms and they are unlikely to tell you what it is. 

umkskl

K_S said:

@umkskl If it's at DIP stage then it's quite likely to be credit history or other beureau related.

Any previous history of adverse with Halifax or other lenders in the LBG group, any business adverse history, any CIFAS markers etc?

So the broker said the DIP decline didn't give any reason at all and did they try to find out more information from the BDM/lender? That's a bit unusual. Not even a generic 'credit score' fail?

Any other properties in the background, etc?

If the old closed account is showing an unsettled balance, that could well be a contributing factor.

I had a similar case recently with an incorrect address format on one credit agency file which was taking ages to resolve and causing a 'credit-score' DIP fail any lender that used that agency. It isn't ideal but had to go down the route of placing with a lender that doesn't use them to get it over the line.

I have no credit commitments with any of the other LBD group's companies.
The very first time DIP failed, I was asked by broker if I had any unsecured debt lending, when I said absolutely none, then I was asked if I can check and send them my checkymyfile report, the broker then sent screenshots to lender proving no unsecured debt lending, but lender again came back and said, since computer failing it they cannot do anything, no further reason or info given. All I can think of is to get the equifax credit report fixed, and then re-apply again for DIP hmm...

Address history looks all correct in credit report.
This was supposed to by my second house purchase. I already have one house with Halifax mortgage. 

K_S

@umkskl Ok, sounds like a Halifax "credit-score" fail. The background property that's already on an LBG mortgage could also be a factor. 

If you're in no hurry then might as well wait for Equifax to sort the report out. Good luck!

Solenoid

Halifax declined me once too. I went somewhere else and told I've got excellent credit rating. It might be because of the way Halifax does their checks. We still don't know why they declined me.

Barry627

If you have been accepted at DIP with Barclays. Are you likely to be accepted? Affordability and income is well within needed.