Egg Mortgage Refused

Josepina

Detached brick with tile roof (standard construction) and area is excellent.
If Egg don't want me then I will close my savings account and move it elsewhere, (not that they will care) I don't anticipate having any problems getting mortgage I'm just annoyed cause I thought this would be a cheap and good idea for 6 to 12 months and feel frustrated that they won't discuss the reason for refusal with me.

BenL

They maybe worried as you are re-mortgaging a house just over 1 month after moving in.

Length of time at present address maybe part of their lending criteria assesment.

herbiesjp

If it was a criteria issue such as that, then it should have been picked up and relayed back to the client before a credit check was done.

As at that point the credit check is irrelevant, as the mortgage would not proceed due to falling outside of criteria.

bermondse1

I've just had exactly the same thing happen to me this morning. I was shocked!

I've never been refused credit before, and I've no financial difficulties.

The Egg tracker looked a great deal - decent rate in the current climate, lower exit fees that my current Britannia mortgage, and no application fees.

Plus I've got cash equating to about 25% of the mortgage to offset.

My mortgage is on it's last legs, want to borrow a 1.25 multiple (they never even asked me my income) over 5 years. LTV ratio is < 20%

I've just submitted credit reference checks now to check nothing's amiss....if it's Egg behaving the way they have done with credit cards, it's pretty disgraceful behaviour - I've now got a search on my file, and I assume if I'm asked the question "have you ever been refused credit" I assume I will have to declare it.

medic1978

Are Egg refusing these mortgages as they may not see you as 'profitable' enough. e.g with low income multiples, short mortgage they may not see it as worthwhile enough for them.

In the OPs case, maybe they think that there is a potential for the mortgage to be paid off over a shorter time period than agreed- again not profitable enough for them?...

Retired_Minky

I was thinking about going to Egg. 2nd choice on my current list but above is quite worrying.

Josepina

Well I am starting to wonder about Eggs principles ie We aren't profitable enough for them!
I'm now considering remortgaging with Nationwides 3 year fix at 5.75% plus they said the extra 45k is not a problem. It will be easy as I'm with Nationwide now and they do seem really straightforwards.
I'm also put off Egg by the fact they are so difficult to contact and talk to over the phone, my email responses weren't much better. I can just imagine if there is a problem or error with payments they won't be easy to sort out. Its nice to have a face to face discussion with people sometimes as in Nationwide.

maninthestreet

LTV is just about 80%, perhaps that's what Egg didn't like?

Josepina

They were happy with my LTV! They refused after credit check. Again they hadn't even asked about income!
It would be interesting to find out what there lending criteria actually is. Maybe I'll write to Sunday Times!

The_Architrave

I applied yesterday - I think the letter I'm about to send them says it all:

Egg Mortgage Solutions

Riverside Road

Pride Park

Derby

DE99 3GG

Dear Sir or Madam,

Your Reference: Exxxxxxxxx

I am writing to ask you to reconsider your decision to decline my mortgage application.

Your colleague said the decision was based on information from Equifax. I am looking at my Equifax report online and the only blemish I can see is one payment one month in arrears, back in June 2003. My credit score is 512, which is described as excellent.

In addition, the amount I wish to borrow represents a loan to value ratio of less than 40% and an income multiplier of less than 2 times, both of which make it a very low risk proposition.

I therefore simply cannot understand why you would not want my business.

Please call me on ... if you need any further information.

Yours faithfully,

Actually, I can see why they wouldn't want my business - not enough profit potential for them. In which case, they shouldn't have said the refusal was based on the information from Equifax.