Mortgage and credit checks

[lostbloke]

My wife and I recently applied for a mortgage with a leading high street bank. We were turned down following a credit check. I checked with the credit reference agency and it appears that we were turned down as a result of half a dozen late credit card repayments which have given us a 'fair' credit score. We have been told by the mortgage advisor that we can appeal their decision and have our case sent to their head office to be reviewed. We both have pretty well paid and very secure jobs. We have never defaulted on our existing mortgage or on utility bills, etc. My question is, is it worth us appealling the bank's initial decision? Has anyone out their experience of this process and been successful/unsuccessful? Would like to hear from you.

[hectic]

Hi lostbloke, I would suggest getting an Equifax credit report (these can be obtained online) as this will detail everthing in your credit history and will show what payments were late and if they have been settled.  I would then suggest going to your own bank manager and presenting your case to them with detailed explanations of why the payments were late and offer to dispose of the cards as a condition of the mortgage.  Hopefully if you can prove that you will be a good customer and all payments will be on time they may give a little leeway

http://www.equifax.co.uk

[Loosehead]

You need to convince lenders that you are reliable and able to pay, being late is a sign that you are not. Assuming the payments where eventually made you need to explain to the lender reasons why you appear erratic in your paying habits. It will be worth appealing if you can demonstrate plausible reasons for the late payements and also that you are now on time with cc payments. Just set up a dd for the minimum on your cards and at least then you won't be late again through absent mindedness.

[lostbloke]

Thanks guys, you've both been very helpful. Will take your advice, keep my fingers crossed and see what happens. Thanks again.

[Mrs_Pegasus]

I have had a mortgage application refused by a high street lender, the same lender who offered the highest commission to advisors at the time! and the same lender who was known to be very picky.  Fortunately, my advisor said we will try another high street lender who was offering the rate of interest and other benefits and bingo we were accepted in a flash but the advisor admitted that this was a lender who offered less commission for his business!   Please dont think I am casting doubt on your advisor but you could challenge the decision or ask them to try another lender with a similar rate and package.  Remember an advisor should tell you his terms of business and how he is paid.  If he says its based on commission ask to see his lenders rates.  On the other hand I do know people who have successfully reversed a decision on their mortgage, the lender will forward your case to their underwriters who will make the final decision.  The choice is yours.

[sandras]

Appealing in any event is a paper excercise, it's a 50/50 gamble.

I would try another bank and put the appeal in with the bank that turned you down.

If all else fails, there are mortgage brokers, who's relationships with banks are greater than those of mere mortals like you or I - I would approach a Broker and get them to get you the best deal.

 

Best of luck