First Time Buyers - Declined Mortgage

Tiddler_2

QA5IS wrote: »

Ive just checked experian and noticed that when Halifax did there search they put that we'd been living at this address for 24 YEARS! I'm 23 and my girlfriends 21. We've been here for 2 Years 9 Months. Would this affect their decision?

Also to Tiddler - the statements wouldn't have been an issue I dont think. We were up front about everything we pay out and salary, Whats a 'C pass' also. Thanks

Halifax grade their credit scores A,B,C....F.

A is an excellent pass - usually someone in very stable employment, with a very good credit record, low mortgage in relation to value of property and more than likely an existing Halifax customer.

B is an excellent pass, but not quite as good as an A pass.

C is a standard pass and is the most common.

The ratings are based on the Halifax's credit scoring system which takes into account there arrears analysis, not just what is on your credit file.

Anything below a C (D,E,F) is a fail.

It used to be the case that if you went into a Halifax branch, and received a D or E, their system would do an automatic referral to Birmingham Midshires (Halifax's specialist lender). I'm guessing that they may not do that any longer, but not 100% sure on that.

The incorrect length of time at your addresses could have affected it, if you didn't originally disclose your previous address (They would need a 3 year history) as well as showing less stability in your residential history, something may have come up on the credit reports at your previous address(es)

The other thing that may have influenced it, is the deposit side of things. Assuming the original keyer did not key it as a vendor gifted deposit.

The way the banks look at it is that if you are not putting any of your own money into the house, then if things got difficult you could actually walk away and not lose anything in cash terms.

It could be that which tipped it from a C to a D.

However, if the original keyer (broker or halifax adviser) keyed it correctly on a full application (not an AIP - which if I recall correctly doesn't ask where your deposit is coming from) then it is very rare for it to change.