Declined an AIP by every lender

COYI123

Hello everyone , I’m a first time buyer and me and my partner have just been declined an AIP by every bank , because apparently we don’t have enough internal credit points . We are both 20 , I am a full time gas engineer on £45000 a year and she is a self employed beautician that normally earns £20000 a year but because we have to use her latest tax year it’s only £10000 because of COVID. We have always paid everything off in full and always on time , the only thing that’s on credit is her car which she always pays every month , I originally had a score of 940 out of 999 on my report but because I accepted a credit increase on my credit card ( which I never used and anything I did use always got paid off the same week ) , it knocked me down to 800 which is in the ‘fair’ bracket , my broker is saying we can’t get an AIP because of this and we need to wait for our credit to go back up again a little bit and that our age has also affected this . We have £27000 deposit and intending to buy a £270000 property so 90% LTV , does anyone have any ideas to what I can do to sort this out and get an AIP sorted ??? 

[Deleted User]

You need a new broker.  Your CRA scores have nothing to do with credit or lending and your credit limit increase won't have any bearing on the decision.

You need to have your application placed with the right lender for your circumstances. Have you reviewed your three files in detail?  

And did your broker really apply to every bank?

RelievedSheff

Lenders do not see your "credit score" that you see it is a made up number. They use their own internal credit scoring systems.

There is something else on your credit files that is putting lenders off. You need to check the information on your credit files with a fine toothed comb and check that all information is correct and up to date.

Accepting a credit limit increase is certainly not why you have been declined a mortgage!

How many lenders have you applied with? Too many credit applications in a short length of time will spook lenders. Have any of the lenders used a hard search on your credit file at AIP stage?

MWT

COYI123 said:

... but because we have to use her latest tax year it’s only £10000 because of COVID.

Did she take any of the SEISS grants and if so is that included in her £10,000 'earnings' ?

You are right up against the 4.5x income limit and there are a number of lenders that will have problems including her £10,000 income, especially if she has taken anything from the SEISS grants...

You certainly need a better broker though whatever you do next as your current one doesn't seem to be helping when it comes to guidance...

lonibra

Your MB does not inspire confidence. I would get a second opinion before throwing in the towel. 

ACG

Your broker sounds shocking:
1) Credit scores are not a real thing. The fact they are even suggesting it is, is worrying. 
2) There is no chance they have tried EVERY lender! We have access to about 80 and in over 10 years as a broker I have never used even half of those. 

Good income, decent enough deposit and no bad credit - you should have options. 

COYI123

ACG said:

Your broker sounds shocking:
1) Credit scores are not a real thing. The fact they are even suggesting it is, is worrying. 
2) There is no chance they have tried EVERY lender! We have access to about 80 and in over 10 years as a broker I have never used even half of those. 

Good income, decent enough deposit and no bad credit - you should have options. 

My broker said they ain’t lending due to “internal points” . I said to my broker but what is bad about my score , or my job , or our deposit ? And they had no explanation they said just wait till next month for your score to hopefully to go up , me and my partner did an soft check AIP on Halifax by ourselves ,but even they said no to an AIP , have no explanation to why they are doing this 

COYI123

RelievedSheff said:

Lenders do not see your "credit score" that you see it is a made up number. They use their own internal credit scoring systems.

There is something else on your credit files that is putting lenders off. You need to check the information on your credit files with a fine toothed comb and check that all information is correct and up to date.

Accepting a credit limit increase is certainly not why you have been declined a mortgage!

How many lenders have you applied with? Too many credit applications in a short length of time will spook lenders. Have any of the lenders used a hard search on your credit file at AIP stage?

That’s what my broker said , they said that our internal points are not getting us anywhere because of 2 reasons , our age or our credit history. Our age shouldn’t really do with any of it as we are both 20 and our history is good we have never missed payments and have always cleared our credit cards in full , I have no explanation to why they just ain’t giving us an AIP . HSBC , Halifax , accord , they have all declined giving us an AIP , the only people that gave an AIP was Tipton and I’ve heard they are bad lenders and what they wanted to lend wasn’t even near 4.5x our wage which is not fair on us. 

[Deleted User]

COYI123 said:

ACG said:

Your broker sounds shocking:
1) Credit scores are not a real thing. The fact they are even suggesting it is, is worrying. 
2) There is no chance they have tried EVERY lender! We have access to about 80 and in over 10 years as a broker I have never used even half of those. 

Good income, decent enough deposit and no bad credit - you should have options. 

My broker said they ain’t lending due to “internal points” . I said to my broker but what is bad about my score , or my job , or our deposit ? And they had no explanation they said just wait till next month for your score to hopefully to go up , me and my partner did an soft check AIP on Halifax by ourselves ,but even they said no to an AIP , have no explanation to why they are doing this 

there are 90% lenders offering prime rates who dont do internal scoring. Just check the report to check there isnt any adverse.   Is he/she offering any alternative options?  

Halifax 90% is near impossible for people with little history at the moment so thats not a surprise they said no

COYI123

Deleted_User said:

COYI123 said:

ACG said:

Your broker sounds shocking:
1) Credit scores are not a real thing. The fact they are even suggesting it is, is worrying. 
2) There is no chance they have tried EVERY lender! We have access to about 80 and in over 10 years as a broker I have never used even half of those. 

Good income, decent enough deposit and no bad credit - you should have options. 

My broker said they ain’t lending due to “internal points” . I said to my broker but what is bad about my score , or my job , or our deposit ? And they had no explanation they said just wait till next month for your score to hopefully to go up , me and my partner did an soft check AIP on Halifax by ourselves ,but even they said no to an AIP , have no explanation to why they are doing this 

there are 90% lenders offering prime rates who dont do internal scoring. Just check the report to check there isnt any adverse.   Is he/she offering any alternative options?  

Halifax 90% is near impossible for people with little history at the moment so thats not a surprise they said no

We got given one AIP from Tipton building society but from what I’ve heard is that they are terrible. The only option they’ve gave us is to wait till our next credit report to see if our score has jumped up anything , they also did say if that doesn’t work then they will try to appeal to the lenders at why they ain’t giving us an AIP.

[Deleted User]

ah so you do have an AIP?  Your topic says you have been declined by everyone.   T&C offer pretty decent rates and they have given you an agreement to lend you the funds to complete the purchase.   What is it about them you dont like?   I always find them pretty sensible to deal with, not the quickest lender at all but certainly not as painful as dealing with Santander at the moment!