Egg Mortgage Refused

missjennifer

I have received a response to my appeal, the letter only arrived with them this morning - I sent it special delivery last night- still a no...they will not tell me my score, why it was refused or anything.... they said to check my credit report on equifax - anyone know how to do this for free?

They are sending a letter out to me, but they apparently do not explain their reasoning in it ....

I'm beginning to agree that they only want people with slightly dodgy credit history to make a profit - get a few months' mortgage payments and then repossess a house. What a waste of time!

Anyone got any other suggestions of good places to go? I have seen Woolwich offering a similar product, but can only loan up to 60% - I need 65% :mad:

bermondse1

It's £2 to get a hard copy of your report from equifax - which is what I did...takes a few days to come back.

www.equifax.co.uk

Then select "Personal Solutions Products" tab, and then "Statutory report" from the menu on the left hand side.

Otherwise sign up for the online service, which I believe gives you the first 30 days free, but cancel after then...details should be in Martin's weekly email I think.

missjennifer

thanks bermondse.... I have got the free 30 day trial and spoken to Equifax, they say there is NOTHING in my report to have caused an problem, and to request a "manual search" from Egg which means I then supply them a copy of the report....what a palava!

Equifax cannot understand why I would have been refused....

I might do it now...to see if that works!

bermondse1

You might have got a standard "no" response from Egg, because you've not actually demonstrated in your letter that you've checked your credit record, and hence why their assessment of you is wrong.

The other thing to check is your Equifax credit score, and compare it to other's who've posted theirs.

I'm now rather worried that I've not heard anything back...

missjennifer

just on the phone to egg - been on hold 5 mins so far...give me another 20!

You might be right about not having checked equifax before appealing....

I would def chase yours up - thats painfully slow, they told me they have to reply to appeals within 48 hours....but they write you a letter!

missjennifer

Finally got through to Egg - spoke to a guy who explained they have changed their lending criteria round. They used to initially check LTV/salary etc etc then do a final credit check, but since the "credit crunch" have swapped this round - so the credit check is now done with no reference at all to property value, LTV, salary etc.

SO, for me, if I cant get past the credit check (which is not negative at all!) they will not consider any details in my appeal concerning affordability i.e. there is really no point in appealing.

They then let slip that really Egg are only offering their mortgage to current customers, so they're pretty much misadvertising by making it appear that its available to all. Whereas, FirstDirect (part of HSBC) are offering a very good tracker rate with offset function to customers only - and they are quite clear about this. I called them, and if someone is not in a hurry, its a great deal. You can set up an account as a customer just to then make you eligible for a mortgage - worth a go! But the whole process takes about 10 weeks+ so I cant really do it....

bermondse1

Thank for the update missjennifer - that'll mean I'm rejected as well then, and explains why The_Architrave succeeded in his appeal.

Wonder if that's something that Martin should be highlighting?!

I've checked out the FirstDirect offer, and yes, they're good, but the main issue for me, is that there's no free valuation.

Since I'm borrowing a relatively small amount, I have to balance the fees versus the rate. Any savings for me by remortgaging can quite easily be gobbled up in the fees.

I'm looking at roughly a £500 saving over two years if I could remortgage to Egg, versus shifting to a new mortgage with Britannia...but the real issue for me is that Britannia are now tying you in with ERCs for 3 years on all their mortgages...which is a massive pain.

Conrad

bermo

Watch out for interim interest where you pay interest on top of your last months payment with existing lender and also on your first payment on new lender.
This can negate any savings you had been expecting.

I seem to be the only broker who ever mentions this - weird, must be me shruggg

payless

if both lenders are daily interest and don't have " interest to month end clause" it's not an issue , although depends on when payments are due to whether its a cashflow issue ( and as sunch should be accounted for on amount requested)......

( BTW Conrad I include it on my pre sale checklist , cover it on appointment, and follow up in email later when talking about dates/ redemption/ solicitors etc.... )

MartynwithaY

bermondse1 - have you taken into account that you have to pay your own legal fees with Egg?

I'm thinking of the Egg tracker too, but the cheapest quote I've had for legals is over £300!

I think FD pay your legal fees, but you pay the valuation fee? So I'm torn between the two at the moment.

As a side question, does anyone no how much FD charge for valuations?(~£105k house value) I can't find it on their website.

Thanks
Martyn.