AIP failed

asky5555

Hi I tried to remortgage on a BTL, I went through the AIP process and it failed. They said affordability is fine but it said credit fail(equifax). I dont understand Ive got my credit report no missed payments, ccjs etc. credit usage low around 20%. Im on electoral roll too. 

Has anyone got any suggestions, I have requested a financial assoication removal( not got any credit with that person 3/4 years ago) so not sure if it could it be that. Thanks

Brie

do you have high credit limits and overdraft?  even if you're not using them these will be considered risky.  add to that mobile phone contracts, insurance paid monthly - these are additional credit agreements.

asky5555

Thanks for your reply. road tax and tv license is monthly.  My overdraft is low and not used.  

But yes I have credit cards(4) with high limits. I thought if you dont use them or stick to 30% or less then is fine.  I usually agree to the higher limits.

Thanks

CliveOfIndia

asky5555 said:

But yes I have credit cards(4) with high limits. I thought if you dont use them or stick to 30% or less then is fine.  I usually agree to the higher limits.

Thanks

Having and using credit cards is not a major issue, as long as you're repaying them in full every month.  Carrying a balance on a standard interest-bearing card is bad.

Having a high unused limit is a bit of a dilemma - on the one hand, you do have the capability to go out and splurge on stuff you can't afford to repay.  But probably more important is your payment history - if you always repay your cards in full, that's a good thing in the eyes of a lender.

asky5555 said:

I have requested a financial assoication removal( not got any credit with that person 3/4 years ago) so not sure if it could it be that. Thanks

If the person you're financially associated with has a tarnished credit history then yes, this could well be a factor.