Loan for Property Purchase (not a mortgage)

Jimmy_Boy · 24 October 2017 at 11:38AM

One thing I was a little concerned about is, the 'live' date of the marker, and obviously not knowing for sure when it is applied (immediately, or at beginning of month). I would of thought immediate, but do not know this for sure.

But, lets say it was at beginning of month it is applied (like when you credit file refreshes). I send off a SAR request to CIFAS now, and they reply to me BEFORE month end, with no marker information. Then at beginning of month the marker is applied. I make decisions based on the understanding that I have no marker, but the marker was applied after the SAR request was processed.

The other 'issue' is sending off these requests to 3 different companies who require official documentation. Due to the requirements of what they accept (driving license, passport etc...), I am going to have to send a SAR request to Company 1, wait for their reply and return of my documents to then send off to Company 2, and the same again for company 3.

I don't currently have an in date passport, which is one of the accepted forms of identification. I was going to apply for one today / tomorrow, as I will be going on holiday near the end of next year, so its something that needs to be done anyway.

What a pain in the backside this whole mess is.

Thanks for all your help guys.

Candyapple · 24 October 2017 at 12:05PM

Jimmy_Boy wrote: »

One thing I was a little concerned about is, the 'live' date of the marker, and obviously not knowing for sure when it is applied (immediately, or at beginning of month). I would of thought immediate, but do not know this for sure.

But, lets say it was at beginning of month it is applied (like when you credit file refreshes). I send off a SAR request to CIFAS now, and they reply to me BEFORE month end, with no marker information. Then at beginning of month the marker is applied. I make decisions based on the understanding that I have no marker, but the marker was applied after the SAR request was processed.

The other 'issue' is sending off these requests to 3 different companies who require official documentation. Due to the requirements of what they accept (driving license, passport etc...), I am going to have to send a SAR request to Company 1, wait for their reply and return of my documents to then send off to Company 2, and the same again for company 3.

I don't currently have an in date passport, which is one of the accepted forms of identification. I was going to apply for one today / tomorrow, as I will be going on holiday near the end of next year, so its something that needs to be done anyway.

What a pain in the backside this whole mess is.

Thanks for all your help guys.

You do realise that credit files aren't refreshed once a month? They are refreshed daily because different lenders will be sending their updates to all 3 CRAs at different times of the month.

They are only seen as being updated monthly to you, the data's owner, because that is all the CRAs are willing to give for free - 1 monthly status update.

I would imagine the data would be live straight away with CIFAS.

Also, CIFAS only require a photocopy of your photo ID. Do you not have a driving licence you could use instead? As for the other ID such as original bank statement, surely you have enough of those to be able to send to the other companies at the same time?

Jimmy_Boy · 24 October 2017 at 12:22PM

Yes, I have a drivers license to use. But when I looked at the different SAR request details of the various companies, there was an overlap of what was required. There was a List A and List B. I need to have another look and re-evaluate.

I thought CRA's where updated monthly, and this is why I have seen it suggested that you essentially get a 1 month grace period - allowing you to get quotes from various companies in this timeframe without it drastically impacting your CRA, as the other companies don't see your other quotes / applications until the following month.

Seems like I've potentially misunderstood the way that this works?

Thanks again for your advice.

Candyapple · 24 October 2017 at 12:33PM

Jimmy_Boy wrote: »

Yes, I have a drivers license to use. But when I looked at the different SAR request details of the various companies, there was an overlap of what was required. There was a List A and List B. I need to have another look and re-evaluate.

I thought CRA's where updated monthly, and this is why I have seen it suggested that you essentially get a 1 month grace period - allowing you to get quotes from various companies in this timeframe without it drastically impacting your CRA, as the other companies don't see your other quotes / applications until the following month.

Seems like I've potentially misunderstood the way that this works?

Thanks again for your advice.

Yes you have. Your credit files are 'live' and updated daily. You could make 5 credit applications in 1 day and each lender will be able to see that you had made another application elsewhere that same day. What they don't see is whether you were successful or not because an account won't have been created yet. But obviously the more hard searches you have, the likelihood is you were declined and again it's just another factor that comes into play by the lender's individual lending policy which is credit scored within seconds as to whether you are declined or accepted.

Getting quotes for things like car insurance, those are classed as soft searches and not seen by anyone but yourself. You could do as many of these as you wanted within whatever time period because it won't affect your credit history.

PaulL_2 · 24 October 2017 at 4:21PM

My mortgage advisor told me this;

Always be honest, otherwise when they find out (which they will, as they all share info about each other) then you'll be in a whole heap of trouble.

You need to weigh up your options and you'll realise that its not worth the risk of telling little white lies (fraud)

iolanthe07 · 25 October 2017 at 2:49PM

Er when has anyone who is renting ever taken out a loan for "home improvements"

Well, I would, for one. I have guaranteed life long tenure for my wife and I at a reducing rent. I am very happy to spend money on the house, which will be our home until we die or get taken into care; indeed I will be spending £5K to £10K over the next couple of years. I won't be borrowing it as we have sufficient savings, but the principle remains the same for anyone in my position.

Candyapple · 25 October 2017 at 3:01PM

iolanthe07 wrote: »

Er when has anyone who is renting ever taken out a loan for "home improvements"

Well, I would, for one. I have guaranteed life long tenure for my wife and I at a reducing rent. I am very happy to spend money on the house, which will be our home until we die or get taken into care; indeed I will be spending £5K to £10K over the next couple of years. I won't be borrowing it as we have sufficient savings, but the principle remains the same for anyone in my position.

I'm guessing you are of the older generation? If so, your situation is the exception, not the norm. Also most people these days can't get council housing so a rather moot point.

The majority of tenants who pay rent to their landlords would be insane to drop large amounts of money on home improvements from their own pocket given that once done, their landlord could decide to sell up and reap the profits which they didn't have to pay a penny for, and/or increase their rent and they would have no choice but to pay up or move out.

Jimmy_Boy · 25 October 2017 at 3:15PM

Sent CIFAS SAR off today, will keep you posted.

Need to send off to the other 2 agencies too.

Thanks for all your help and advice guys - even if it has made me worried sick.

Jimmy_Boy · 25 October 2017 at 4:49PM

I don't want to jump the gun, but I'm just trying to think through possible outcomes.

Lets say, hypothetically, CIFAS and the other 2 agencies come back clear, no marks on my name, would I be safe to then apply for a mortgage? I worry that applying for a mortgage for £9,000 after a £9,000 'Home Improvements' loan was declined, will in itself flag me.

Thanks.

Herzlos · 26 October 2017 at 4:45PM

Ignore the CIFAS; if it gives you problems you address it as a misunderstanding.

Applying for a £9k mortgage after a £9k loan was declined shouldn't be a particularly big deal. The loan was declined because you were a renter, so you should be OK. Go and talk to your bank or mortgage provider for more information on the application process.

Loan for Property Purchase (not a mortgage)

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