Egg Mortgage Refused

Josepina

I just enquired about the Egg Tracker mortgage and when they proceeded to do the credit check he then said I didn't fit their lending criteria and refused to tell me any more!!!!
I really don't understand how this is, this is what I was asking for....

Remortgage on current valuation £373000 (although house few doors down on market for £389000)
Asking to borrow £297000
Current wages £90,000 pa employed with same employer for 8 years (NHS for 15)
No other credit but 2 credit cards i always pay off in full each month.
I've never been refused a product before, I've held an Egg savings account for over 10 years with approx £20,000 in it. Had my current acc for about 20 years. Current mortgage with Nationwide, no arrears.

Only reason I can think is I moved in on 13th march this year so maybe electoral roll not sorted yet??? Would this cause problem?

i also just went to Martins bit on credit scoring and did free bee bits but on both experian and the other I got errors so feeling bit stressed and frustrated now.

I'd really appreciate any help or advice.

wickyb

I've had the same thing happen to me today. I was requesting a very low mortgage which is only 20% LTV on the property I am buying.

I passed the 'internal' criteria but was astounded when they refused me after the credit check. They would not give me any info. as to why I failed, but they advised I check my Equifax file. Well, there is absolutely nothing in there that should give rise to a refusal; I have one regular credit card (always paid in full each month) and any store cards or 0% finance deals I've had are always paid off straight away.

This is the first time I have been refused credit, and my suspicion is that our rating is actually too high, and the fact we'd be unlikely to default would mean nothing extra by way of penalty charges for them.

I would not be surprised if their profile is for a medium risk customer who may be able to generate additional income over the long run through the occasional missed payment. A distrusting attitude I know, but I struggle for any other reasonable explanation.

UK007BullDog

Get a proper credit check done by visiting or writing to Experian.

Then visit a broker.

£90K x 3x income is £270K max unless they lend more than 3x.

Why Egg anyway? Their rates are not good and they belong to Citibank who is in trouble.

I think for both of you it was probably that you want to borrow too much depending on your incomes. There is no buffer for any extreme rate rises.

Josepina

Well Egg says they will lend 3.25 x income band they did agree to £297,000 prior credit check which would have been ok.

I've just got my credit report from Equifax and the only thing outstanding is that I'm not yet on electoral roll for my new house so I'm going to recheck the report in about 2 weeks and so long as I'm on it then I'll aim to reapply to Egg.

The reason I chose Egg was I thought a tracker .75 above base rate was pretty good and it also combines the offset ability which would be good for me because I plan to use £45k to build an extension but I don't need all that money instantly so can offset while I'm not using it?

what do other people do when borrowing money for extension / building works, I will pay builder in about 3 installments over about 3 months if all goes well?

Josepina

Also no fees and no tie in so if a good fixed rate comes along I can jump ship

UK007BullDog

Read the offset thread sticky and also read up on Egg on this board.

minimike2

Only thing with the electoral roll is that depending on your local council you might not get added right away. Some do a run every three months, and some only every six months of the new additions, so if you just missed thier run you could be waiting a while.

Josepina

So if that is the case Mini what can I do to sort it out? Contact credit people?

minimike2

I would be looking to check that your credit record doesnt have any incorrect information on, get a copy, make sure there is nothing on there that could be potential identity theft etc.

If thats all clear, then I would simply look elsewhere for the mortgage. A good credit history, or even score, doesnt always mean you will fit the criteria of a lender, even with your salary.

herbiesjp

There are plenty other lenders that will agree this for you.

Not being on the electoral register should not cause too many problems as long as you can verify your address via other supporting documents

Income is good.

Loan to value is good.

If Egg are turning good clients like you away in the current climate I don't really know what kind of clients they are looking for!?

marvin

What type of property is it? I found Egg reluctant to give money on any budget despite a long talk with one of the managers could not get them to lend me anything despite being inside their nor mal lending criteria and this was 2 years ago. The problem I had was the type of property, they offered me a mortgage in principle (having passed a credit check with them on the phone spent 10-15 mins on phone waiting whilst they did it), but got a rejection letter a few days later. The reason i eventually got out of them was the type of house (what it was made from). Like many of these types of lenders they can be very picky on the type of house or the area it's in.