Rejected Additional Borrowing/Category B meaning?

viperviolin

I have had my current mortgage for 6 months but Halifax just ran the application process with me on a video call and computer said no, the advisor said it told him I came back as a category B. What does this mean? 😳 
He said Bs can change to As and that I could try again in month. 
My affordability seemed OK despite a loan and car pcp I have. I am a decent earner even though a contractor. I've never been rejected before so don't understand. Advisor couldn't tell me why or what a category B person was.

Hoenir

The advisor will have no clue !  As the parameters will be set at far higher pay grades.  Lenders will have a different macro view on affordability to those of individual applicants. 

Brie

any other borrowing going on?  car insurance paid monthly?  phone contract?  overdraft?  Any of those that are new would effect this too.

MattMattMattUK

viperviolin said:

I have had my current mortgage for 6 months but Halifax just ran the application process with me on a video call and computer said no, the advisor said it told him I came back as a category B. What does this mean? 😳 
He said Bs can change to As and that I could try again in month. 
My affordability seemed OK despite a loan and car pcp I have. I am a decent earner even though a contractor. I've never been rejected before so don't understand. Advisor couldn't tell me why or what a category B person was.

You have had your mortgage for six months and now you want to borrow more, on any level that cannot look good from a lenders perspective. It may also move you to a different LTV bracket, exceed affordability criteria, additional borrowing is generally a higher risk that just a straight remortgage etc.

You could go to a broker, but six months into a new deal, likely a fix with early repayment penalties, trying to borrow more might vary from a bad idea to an impossibility. 

amnblog

If you have not had your mortgage for at least 6 months it is an automatic 'no'.

If you have, this is about credit scoring. Halifax run an auto credit scoring system that cannot be overridden - you did not make the rating for the borrowing at this time.

Note: This is not solely about your credit file or credit history. This is about a number of factors that add up points in the Halifax auto system to get you over the line - or not in this case.

Options:

1. Wait and try again in the summer
2. Speak to a broker about additional borrowing from another Lender