[suziequeue]

So I have just been told that my application for an advance on my mortgage has been turned down.

My credit rating is "excellent" according to Experian and I understand that the bank don't necessarily have to give me a reason as to why they turned down my application.

I have written to the mortgage guy that I was dealing with to ask for more information but I am at a complete loss as to why it's been turned down.

Feeling a bit crushed at the moment as I my head I had great plans for what we were going to do. Needless to say - OH not remotely interested ("Well - it's not my money dear - so nothing to do with me…..").

Any suggestions as to what to do next?

Will this failed application lower my credit rating in itself?

 

[Lesley Silvester]

So frustrating. I did hear on the news that Bank of England is wanting to slow down mortgages. Maybe that's why.

[Mammyshaz]

Moneysavingexpert.com  has a great section on mortgages. It explains what may cause a failure and ways to change your chances. Also explains that each bank it's own tick boxes for pass or fail so don't give up after one knock back. Well worth a read  and good luck

[suziequeue]

Thanks for your encouraging words.

At the moment the loan to value on my mortgage is about 45% so I have bags of equity and the amount I wanted to advance from it would still have left the loan to value at less than 50%.

My concern is that the bank don't have to tell me why they turned my application down so I have no way of knowing how to improve my chances the next time I apply. I got the impression that I would have to leave it a couple of years though.

I have had three mortgages with this bank over the past twenty years and have never defaulted on a single payment. I do hope the mortgage chap is going to be helpful.

[Bionic]

   That you get the reason for the decision. I wonder if there is any way of talking them round.

[sss]

I would be surprised if the mortgage man does not tell you why. It is in their interest to ultimately get the income for the bank, although they are more cautious obviously. There is also a lot of change going on so some are more cautious than others.

Make sure he is aware that if you do not find not find out, once your tie in with them has finished you would look at remortgaging elsewhere.

[suziequeue]

Well - after three quarters of an hour (mostly on hold) and three different people they finally said that the chap who dealt with the original application would need to speak to me next week but it looks more hopeful now.

[benandjerry]

whats frustrating about this sort of thing is you want the answer now.  I was once told I was just 1 /24th of her day and what I deemed urgent went in the pile with the other 23 urgent things she was dealing with at the time.   

[suziequeue]

Yes - in the grand scheme of things it's a big issue for me but I am one of many to her. I can think of other situations where somebody else's big issue has been my routine so - can't complain.


Anyway - she was very nice and sensible and I feel a bit less sore about it all.


We have spent the afternoon sorting out our new vine trellis and it's looking lovely. I can see that I am going to have endless fun hosing down the wall in front of the raised bed….. it's very addictive, then we are going for a curry tonight….. maybe it's too much of that sort of thing that they have cottoned on to 

[Bionic]

Enjoy your curry. I am just about to start making one.

[lord flynn]

is this a remortgage or a new one? It may just be policy-I hope the chap is helpful.


Fwiw Experian is not that widely used anymore by companies-it might be best to get a free trial from Equifax and join Callcredit (also free) just to double check there's no missing/incorrect info on those. Experian is rubbish at updating stuff and CC is the most detailed and many companies seem to either be using all of them or CC. If it was a complete official application that warranted a credit check, it will go on your rating. If you do decide to go elsewhere, checking all the credit agencies would be a good idea (just been through being turned down, improving my CR over 3 years to get approved for another etc etc).

[suziequeue]

I will have a look at the LF. Thanks.

My request was for additional borrowing on my mortgage. The bank said that they had used Experian to get my credit reference and when I pointed out that there was no record of any other credit checks having been done recently - she did say that it took a while to update.

Curiouser and curiouser.

I look froward to speaking to the other chap next week and seeing what he has to say about it all but I think if the decision is based on my credit reference then I would have reasonable grounds to appeal. We shall see.

[lord flynn]

trouble is, finance companies say they only use CRs as a guide and use their own lending criteria not based on your CR but on affordability etc etc .
Experian had me down as fair, Equifax as excellent and CC as poor! And none of the applications ever showed up on Experian but were all there on CC.


The Money Saving Expert forum is invaluable. They also have a thread on which companies are using which CRs-they're all agreed Experian is hopeless and I don't know if you subscribe to their full service or not, but they don't give the customer the whole report if they aren't paying for it.

[suziequeue]

WOW!!!! Just read a load of stuff on MSE.


Thanks very much. Looks lie I might be just too boring for them.

[Roxy]

I do hope you can get this sorted.
 
We had a mortgage for many years with one building society.  When we moved, we thought we could just take the mortgage with us - it was supposed to be transferrable - oh, not that simple!!  Because the BS had been taken over, we were treated as a new customer, and had to reapply.  We spent a couple of hours being grilled about our finances and ability to pay.....we were borrowing less than 30 per cent of the cost of the cottage - way less that most borrowers.  Then they did not like the fact that we had no credit cards ......no finance on cars .....and here was us thinking that was a good thing.  No - they want you to be up to the eyes in debt, and showing how you struggle every month to meet your payments.  Then they will still say no!!
 
We eventually got our mortgage, but have vowed never again!!
 
A young couple I know are buying a house.  Nothing posh, cheap by todays standards.  They were told to pay for the damp proof course, and new windows (they already rent the house).  They managed this out of their saved deposit.  Now have been told they have not enough money to put down on the deposit .....As you can imagine, they are not happy.  Now got another meeting to try and sort it out.