Remortgage application issues
2nd_mortgage
Posts: 69 Forumite
Hi all,
Just a cautionary tale for everyone. I never thought I would have any issues with finding a remortgage so was quite surprised.
I earn a 6 figure amount annually, am always good with my finances having never been overdrawn, late payment etc.
My 5 year fixed rate is coming to an end. The mortgage left is just 27.11% of the actual value of the house (I have made significant amounts of overpayment in the last 5 years as my current mortgage allows unlimited overpayments). My credit reports are all clear. I do have about 37K on 3 0% credit cards - one of them till end of 2018, one till 2019 & the 3rd till 2020 but I have savings of more than 80K to ensure I could pay off the credit card debt if required anytime.
I was accepted in principle by nationwide which has a 1.19% tracker rate with £500 cashback but when I formally applied online, it was rejected straight away (based on information on my credit reports according to the screen at the end of online application). I then applied to HSBC - similar rate but no cashback. The application has been with them for 2 weeks but they haven't taken any decision yet. I have had 3 requests from underwriters for various documents & I am now beginning to get worried.
I am sure I can afford the remortgage but clearly there is something in my credit files that is concerning to the lenders. I don't know what it is so I cant do anything about it. The reports on Noddle, Clearscore are all fine.
Any suggestions ???
Just a cautionary tale for everyone. I never thought I would have any issues with finding a remortgage so was quite surprised.
I earn a 6 figure amount annually, am always good with my finances having never been overdrawn, late payment etc.
My 5 year fixed rate is coming to an end. The mortgage left is just 27.11% of the actual value of the house (I have made significant amounts of overpayment in the last 5 years as my current mortgage allows unlimited overpayments). My credit reports are all clear. I do have about 37K on 3 0% credit cards - one of them till end of 2018, one till 2019 & the 3rd till 2020 but I have savings of more than 80K to ensure I could pay off the credit card debt if required anytime.
I was accepted in principle by nationwide which has a 1.19% tracker rate with £500 cashback but when I formally applied online, it was rejected straight away (based on information on my credit reports according to the screen at the end of online application). I then applied to HSBC - similar rate but no cashback. The application has been with them for 2 weeks but they haven't taken any decision yet. I have had 3 requests from underwriters for various documents & I am now beginning to get worried.
I am sure I can afford the remortgage but clearly there is something in my credit files that is concerning to the lenders. I don't know what it is so I cant do anything about it. The reports on Noddle, Clearscore are all fine.
Any suggestions ???
0
Comments
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Your credit report will show the credit card debt but not the savings. They may have judged having £37k of credit card debt is a lot for someone on a 6 figure salary and you don't fit within their lending criteria.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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The prudent thing would have bern to clear the CC debts before applying.0
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2nd_mortgage wrote: »The mortgage left is just 27.11% of the actual value of the house
More importantly what's the debt owed in relation to your income and outgoings. People often assume that lenders prioritise security of debt on an individual basis . When in fact they don't.0 -
I had close to £30k of 0% credit card debt, and went and had an informal chat with a member of staff at Nationwide. He ran the figures for me and told me to pay it down to £10k, which I did.
The other thing he told me was if the amount you have declared and the amount on your files dont match very closely then it will be an automatic decline. I had to wait over a month for the files to show the reduced amount. If it is declined, it can be appealed by providing the statements and showing the balances.
Check Experian as the third agency (MSE credit club will provide it free.)0
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