Egg Mortgage Refused

bermondse1

Will you keep us updated on progress?

I'm just waiting for my Experian record to come through before doing the same, so it would be interesting to see how they respond.

Josepina

I should be on the updated electoral roll on 1st May according to council but I'm really not sure i want to bank with egg at all anymore. I'm disappointed with their attitude and will probably move my savings account, they don't have the best interest anyway!

The_Architrave

Well, my appeal worked. I sent the letter on Tuesday evening and two days later got a call from the same chap I spoke to on Monday. He said the underwriters had authorised him to carry on with the process. So he took all the details and I should have a decision within a week. Fingers crossed.

Although my score is in the "excellent" band, it is at the low end of a very wide band and apparently below Egg's automatic acceptance level. The only reason that I can see for it not being higher is the place where I live, which is not the most salubrious of areas. When I knew more about credit scoring, a long time ago, I seem to remember that they did heavily weight their judgement of people by their address. I would have expected it to have become more sophisticated but apparently not. Or perhaps it really is the case that I'm more like my neighbours than I like to think.

Gloster_Advise

That last comment made me chuckle. :rotfl:

AloneWithStrangers

I can tell you it's nothing to do with your potential profitability or the opportunity to charge fees: it has everything to do with the lack of liquidity in the marketplace. Egg is being very selective about who they are lending to simply because funds are limited.

This is just a different way of approaching the problem: some lenders have decreased max LTVs, some have increased prices, some have withdrawn products & some have pulled out of the market altogether. What Egg are doing is keeping the product out there at a good rate but with limited supply.

They are not after mediocre customers - they are after Prime+ customers and are pricing for those.

If you're not happy with their conclusion: appeal.

The_Architrave

Egg have moved to the next stage and will offer us a mortgage subject to getting:

• 3 months of bank statements for both of us
• latest payslips for both of us
• a successful valuation

They also noted that I have both an Egg Visa card and an Egg Money card and will be reducing the £14,000 limit on the former (which I hardly ever use) to match the £6,000 limit on the latter. So if I go on a credit card spree, they'll only be down twelve grand, not twenty.

I suppose I should be pleased that lenders are trying to be more responsible...

Happy_chick_6

arghh...we have had exactly the same problem with Egg Mortgages

We (my husband and I) have an excellent credit score and have been declined a mortgage by Egg on the basis that our credit assessment by Equifax was not good enough.

I spoke to Equifax and got a report. Both my score and my husbands score was above 506. They said it is very unusual to see a score this high and there were very few people that have a score higher than this. They were also unable to find anything in the reports that was in any nature problematic and could not understand why it could have been rejected based on their report.

In all other respects we meet their criteria. So we can not understand why it has been declined. We are appealing against the decision and have written a letter. I will let you know how we get on....

missjennifer

I have had exactly the same prob!

Called up Egg, all sounded good, I have a 30% deposit, and only want a small sum - and got refused at credit check stage.

From what I can tell the credit check is based only on your name and address, they do not take into account your spending behaviour, salary, LTV, etc etc, just simply look at what you have borrowed before and how you have paid it back.

I have never had any credit at all, which I thought would be a good thing (doesnt it prove I'm responsible?) when in fact it would have been better to get credit on a load of stuff and pay it off to prove I am a good payer....stoopid. Equally, I have a credit card, but have never used it - shouldnt that prove I'm good at handling my money? Nope, apparently not.

Also now appealing, so fingers crossed - can anyone advise any similar mortgage deals??

jackie_neave

we have seen a house we liked and was lured in to have a chat with connells estate agents.. about it with the morgage advisor.. we said we already have a broker and who was willing to give us a morgage.. so we go along and end up with them getting us a morgage at a better rate with the halifax, we had to provide the info wages, employment etc. and we have over 10% deposit nothing to sell
our credit rating came back an A and they offered to lend us 212,000, but now connells are having a meeting to decide whether to let this go through surley estate agents cannot take this apon thereselves to do this when we have already have been agreed by halifax connells say we have to sign you off they will ring us today, i feel we were dragged in just to get a morgage and the house we want has gone but they didint tell us that, can we just go straight to halifax and not through connells

bermondse1

Happy_Chick and missjennifer - do keep us updated on progress...

I submitted my appeal well over a week ago and still waiting to hear back. Bit unnerving as The Archititrave got a pretty speedy response!

Perhaps lots of people are now appealing?