Mortgage decline reason and appeal

Bootlegyoyo

Hello all

This is a very long and complicated story, so I will focus only on the key points relevant to getting some help, please:

• I have submitted a mortgage decision in principle that was declined.
• The lender wouldn't give a specific reason, but gave the extremely vague answer that it was due to adverse data on the credit report.
• I have checked the statutory credit report and don't see anything that would cause a straight decline due to adverse data.
• They suggested contacting the credit reference agency and asking them.  I was told they may have some additional information used in the lending decision that is not on the statutory credit report.
• I also told the lender I wanted to appeal the decision, but I was told (on the phone) that they don't accept appeals, even though the website says decisions can be appealed (but doesn't explain how to do so).

So my questions are:
1. Do I have the right (ie legal / regulatory) to a specific reason for the decline?
2. Do I have the right to appeal the decision?
3. Would the credit reference agency be able to help, over and above just re-iterating what I already know from the statutory credit report?  Could there be some other information they share with the lender have that does not appear on the report?

Thanks in advance!

MWT

You keep saying 'the credit agency', there is more than one, have you looked at all of the reports available at somewhere like 'Checkmyfile'?

Often one report may be clear when another isn't.

I'd start there first and see if all the reports are actually clear or if there is something unexpected on one of them...

Beyond that, no, they are not obliged to give you a more specific reason and no the credit reference agency you used cannot tell you why a specific lender has declined your application. 

born_again

To appeal the rejection, you need to raise a complaint.

MattMattMattUK

Bootlegyoyo said:

Hello all

This is a very long and complicated story, so I will focus only on the key points relevant to getting some help, please:

• I have submitted a mortgage decision in principle that was declined.
• The lender wouldn't give a specific reason, but gave the extremely vague answer that it was due to adverse data on the credit report.
• I have checked the statutory credit report and don't see anything that would cause a straight decline due to adverse data.
• They suggested contacting the credit reference agency and asking them.  I was told they may have some additional information used in the lending decision that is not on the statutory credit report.
• I also told the lender I wanted to appeal the decision, but I was told (on the phone) that they don't accept appeals, even though the website says decisions can be appealed (but doesn't explain how to do so).

So my questions are:
1. Do I have the right (ie legal / regulatory) to a specific reason for the decline?
2. Do I have the right to appeal the decision?
3. Would the credit reference agency be able to help, over and above just re-iterating what I already know from the statutory credit report?  Could there be some other information they share with the lender have that does not appear on the report?

Thanks in advance!

1. No
2. No
3. No

You need to go to all the CRAs, plus CIFAS just to be sure. Adverse data could range form missed payments, to a CCJ, to debt levels on credit cards that they were uncomfortable with etc. 

Bootlegyoyo

Thanks all for the responses.

I am aware of the different credit reference agencies - the one I'm referring to is the one the lender uses and directed me to.  But for belt and braces I will check the others too.

kingstreet

... and check National Hunter as well!

Hoenir

Bootlegyoyo said:

1. Do I have the right (ie legal / regulatory) to a specific reason for the decline?

No. Lenders will have both internal underwriting and commercial criteria in determining who they offer to lend too. This is commercially sensitive and therefore will not be made public. 

Your time would be better spent using a broker to find a suitable lender. Than take personal slight from a business decision. 

DE_612183

adverse data could just be the amount of credit you already have, or the amount of applications for credit you've made in the last 6 months - it's not necessarily a "black mark" that is the issue...

Take a look at how much you want to borrow
What is your projected income
What are your projected outgoings

MWT

Bootlegyoyo said:

Hello all

This is a very long and complicated story, so I will focus only on the key points relevant to getting some help...

If the story encompasses a number of previous applications to multiple lenders and possibly some small differences in the information on those applications then the advice to check 'National Hunter' could well prove to be sensible. 

ACG

I picked up on one of your sentences...

• I have checked the statutory credit report and don't see anything that would cause a straight decline due to adverse data.

That bit in bold - Do you see anything that could cause a decline or play a part in a decline? 

There are times where a decline could be a combination of things - Debt, small deposit, gifted deposit, low income, couple of late payments - individually probably not a problem, combined and its easy to see why a lender might say no. 


1. Do I have the right (ie legal / regulatory) to a specific reason for the decline? No. 
2. Do I have the right to appeal the decision? It would depend on the lender and the reason for the decline. As an example, Natwest allow you to appeal unless it is a credit score decline in which case they wont allow an appeal. 
3. Would the credit reference agency be able to help, over and above just re-iterating what I already know from the statutory credit report? If you have looked at your report, it is unlikely they will see anything you do not. 

I dont want to discourage you, but why not just find another lender? You could waste a week or 2 arguing it or you could have a mortgage offer and the legals underway in that time with another lender.