Declined an AIP by every lender

COYI123

Deleted_User said:

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!

I’ve heard that you could put an application in , wait months and then told that you’ve been declined and stuff like that which is quite off putting and plus we need an extra £13000 more than what they are lending us , but don’t know if they would negotiate to lend that tiny bit more 

MovingForwards

At best you have 2 years of not much credit history,. Using your CC and paying it off in full, within a week, looks like you never use it. Wait until the statement is produced then pay it.

Your GF also has at best 2 years of credit history, but has a car loan, is self-employed and due to her line of work has struggled due to Covid.

Add both of you together and it's not easy.

Internal credit scores are so far removed from the ones we see on our credit reports. Financial institutions have algorithm methods to produce a pass / fail which is based on credit history, income, what information is on the application and loads of other things. Some lenders won't lend to people under a certain age.

[Deleted User]

if you arent getting enough borrowing then its not going to change unless your income or expenditure changes.   Cambridge is another one that doesnt score applications.   Try this https://www.cambridgeforintermediaries.co.uk/information/affordability-calculator

COYI123

MovingForwards said:

At best you have 2 years of  not much credit history,. Using your CC and paying it off in full, within a week, looks like you never use it. Wait until the statement is produced then pay it.

Your GF also has at best 2 years of credit history, but has a car loan, is self-employed and due to her line of work has struggled due to Covid.

Add both of you together and it's not easy.

Internal credit scores are so far removed from the ones we see on our credit reports. Financial institutions have algorithm methods to produce a pass / fail which is based on credit history, income, what information is on the application and loads of other things. Some lenders won't lend to people under a certain age.

What are we meant to do then ?? I’m sorry but I find it stupid and pathetic that lenders say they’ll give a mortgage to 18+ , knowing full well some that’s 18 won’t have no credit , so me and my girlfriend having 2 years perfect credit history is basically useless to them ?? My girlfriend has proved she is back to earning £2000 a month plus every month since start of April and I’m in a secure job with a trade , what else do they honestly expect you to do nowadays 

[Deleted User]

COYI123 said:

MovingForwards said:

At best you have 2 years of  not much credit history,. Using your CC and paying it off in full, within a week, looks like you never use it. Wait until the statement is produced then pay it.

Your GF also has at best 2 years of credit history, but has a car loan, is self-employed and due to her line of work has struggled due to Covid.

Add both of you together and it's not easy.

Internal credit scores are so far removed from the ones we see on our credit reports. Financial institutions have algorithm methods to produce a pass / fail which is based on credit history, income, what information is on the application and loads of other things. Some lenders won't lend to people under a certain age.

What are we meant to do then ?? I’m sorry but I find it stupid and pathetic that lenders say they’ll give a mortgage to 18+ , knowing full well some that’s 18 won’t have no credit , so me and my girlfriend having 2 years perfect credit history is basically useless to them ?? My girlfriend has proved she is back to earning £2000 a month plus every month since start of April and I’m in a secure job with a trade , what else do they honestly expect you to do nowadays 

And that's why some lenders exist who don't operate like that.  You have a mortgage agreement, the fact that's its not as much as you want or a lender you arent sure of is a problem faced by people of all ages in all situations 

K_S

@COYI123 There's no need to take it personally. All you need is one lender who does not credit-score (if the reason for decline has been lender credit-scoring), is willing to look at the strength of your case and lend you the funds required at a rate that you can stomach. 2 years down the line, if your situation is as it is now (or better), remortgaging should be a breeze and all this will be a distant memory.

If you can't meet affordability for the amount required, which is VERY common irrespective of age, then you need to reassess.

You have done the right thing by engaging a broker. If you think they haven't done a good job or don't have confidence in their findings, then you should consider getting a second opinion and then see what happens. Good luck!

MovingForwards

Are you trying to buy a flat or a house?

How long as your GF been self-employed?

Is she a sole trader? Limited company? If the latter, how long has that company been going for?

Has she taken any of the government grants? If so, which ones?

As you've got access to your credit reports, how many mortgage lender hard searches are showing for each of you?

If you can confirm the above, one of us may spot why you're not meeting criteria with the lenders who declined you.

Where did you find your broker?


Unfortunately, you're trying to buy during a very difficult period where lenders are changing criteria on a regular basis. At least you have an AIP, therefore one lender is happy with the information provided to them.

COYI123

MovingForwards said:

Are you trying to buy a flat or a house?

How long as your GF been self-employed?

Is she a sole trader? Limited company? If the latter, how long has that company been going for?

Has she taken any of the government grants? If so, which ones?

As you've got access to your credit reports, how many mortgage lender hard searches are showing for each of you?

If you can confirm the above, one of us may spot why you're not meeting criteria with the lenders who declined you.

Where did you find your broker?


Unfortunately, you're trying to buy during a very difficult period where lenders are changing criteria on a regular basis. At least you have an AIP, therefore one lender is happy with the information provided to them.

We want to buy a house , she’s got 2 full years of books , and she is a sole trader , yes she took the latest one but it was only £2000 , and we have no hard searches or defaults on our reports , just very confusing on why multiple lenders have said no to an AIP 

MWT

COYI123 said:

We want to buy a house , she’s got 2 full years of books , and she is a sole trader , yes she took the latest one but it was only £2000 , and we have no hard searches or defaults on our reports , just very confusing on why multiple lenders have said no to an AIP 

No need to be confused, what you are trying to do is not easy as you are looking for a mortgage at the limit of your affordability based on her most recent accounts and she took a grant that was given on the basis that she had been badly affected by the problems and was still being impacted as it was the most recent grant.

That is enough to remove a good number of lenders from your pool of possibilities, or to reduce the amount they would lend below what you need.

You just need to get a broker that can help you navigate to the lenders that will be able to look at her more recent earnings and avoid those who only look at the recent past.

That is probably not going to be one of the 'free' brokers though as they don't usually have the time to spend on the less straight-forward cases...

COYI123

MWT said:

COYI123 said:

We want to buy a house , she’s got 2 full years of books , and she is a sole trader , yes she took the latest one but it was only £2000 , and we have no hard searches or defaults on our reports , just very confusing on why multiple lenders have said no to an AIP 

No need to be confused, what you are trying to do is not easy as you are looking for a mortgage at the limit of your affordability based on her most recent accounts and she took a grant that was given on the basis that she had been badly affected by the problems and was still being impacted as it was the most recent grant.

That is enough to remove a good number of lenders from your pool of possibilities, or to reduce the amount they would lend below what you need.

You just need to get a broker that can help you navigate to the lenders that will be able to look at her more recent earnings and avoid those who only look at the recent past.

That is probably not going to be one of the 'free' brokers though as they don't usually have the time to spend on the less straight-forward cases...

I’m prepared to pay money to the brokers , all I want is a lender to understand that my girlfriend is working up to standards again and has almost 4 months worth of income since returning to work to prove that she is , which on average is around £2-3k a month