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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To want to know what the problem is?

36 replies

CrohnicallyDepressed · 29/07/2014 21:10

Just heard our mortgage application has been turned down. Apparently we don't meet their criteria. They can't give us any more information than that, because they don't make their criteria public.

So AIBU to want to know actually why we were turned down? I presume it's not to do with income/outgoings because we got past the first stage of the process, they rejected us after credit checking us.

We have got our credit reports from experian and they are both rated 999, we declared everything beforehand so nothing should have been a surprise to the mortgage company.

This is the second time this has happened (2 different companies, but same circumstances, we got the agreement in principle but failed on credit check) so I'm starting to feel like I'm banging my head against a brick wall!

OP posts:
Andrewofgg · 29/07/2014 21:14

You want to know why somebody refuses to enter into a contract with you . . .

chockbic · 29/07/2014 21:14

Have you tried Equifax?

Do you have any CCJs?

juneybean · 29/07/2014 21:15

I have heard said that they sometimes don't like very "clean" people as they don't think they'll make money off you. Could be a load of bollocks as I also had 999 and I got approved...

chockbic · 29/07/2014 21:16

That's true actually they sometimes prefer people who have used credit.

Vicky5910 · 29/07/2014 21:16

It is infuriating trying to get mortgage!
A broker usually speaks to the underwriters and gets more info for you if that's possible?
Things to check:
Are you on the electoral role at your current address?
Have you had credit before and proved yourself to be reliable?
Does your address ever change? Eg if one credit company has you at 2 west street, another has 2a west street, another has The Lodge, West street... It's impossible to get a mortgage almost without combining all of those as one place
Do you have a high % of used credit? If you are using over 80% of your credit you might not see it affect your rating but banks don't like it

Hth

Snatchoo · 29/07/2014 21:20

Check Equifax and Noddle as well.

I score high on Experian and really really low on Noddle (which uses Call Credit).

It might not be linked to your credit file though.

Dredging up from memory things that could influence an application:

  • employment - have you been in the same employment for more than 6 months? Or are you well-established self employed?
  • are you on the electoral roll? Have you moved more than 3 times in 3 years?
  • if you are remortgaging, and the new rate will be better for you, you may be declined due to outstanding debts
  • if you are buying a new house, there might be an issue with the house - is it standard construction?

YANBU to want to know. I used to assess them for mortgage applications, and it was so annoying that I could assess them, speak with the applicant, but couldn't tell them what was going on!

Snatchoo · 29/07/2014 21:21

X post with Vicky!

Original poster
CrohnicallyDepressed · 29/07/2014 21:22

Yes andrew I would like to know- especially as they have been willing up until the credit check. I could understand if they did the preliminary work (details of income and outgoings) and turned us down, saying they don't think we can afford it. But after us declaring everything, they did a credit check and changed their minds.

We have and are using credit- which we declared to the company(ies) before they even did the credit check, but we have never missed a payment or even been late, so no CCJs or anything like that.

OP posts:
MrsBungle · 29/07/2014 21:22

I agree check equifax. My credit score is much higher on experian.

rememberremember · 29/07/2014 21:24

I second looking on noddle to see if any potential reasons show up on there. Try it as it's free.

Icimoi · 29/07/2014 21:27

Mortgage companies seem to be incredibly cautious at the moment. Friends of mine had massive difficulties solely because the wife had kept her maiden name, and the mortgage company seemed to think this was very strange and scary, and obsessed about the fact that she might have accounts or debts in other names. It didn't seem to occur to them that that could just as easily be the case for a wife who takes her husband's surname.

Then there was the lawyer who was a salaried partner in his firm. The mortgage company for some reason wanted to know how many partners there were. They could have found out in two minutes by looking on the firm's website, or checking Law Society records, but they demanded a letter from one of the partners supplying the information. So one of the partners obediently did so, marking the letter "To whom it may concern", but that still wasn't good enough - apparently the letter couldn't have any validity unless it was addressed to the applicant, telling him what he already knew about his employers.

The lesson seems to be that there may be no logic to lending decisions whatsoever.

brdgrl · 29/07/2014 21:28

I heard a programme (some time ago now, sorry not to be more specific) where they said that companies are starting to look also at your outgoings - very specific stuff in your spending habits, like if you buy a lot of luxury goods or holidays or even a lot of wine (!) - on the idea that even people with good or even perfect credit are a poor risk if they have these kinds of spending habits, especially if there is a downturn in the economy. Sounds bonkers and very intrusive, but there you go.

brdgrl · 29/07/2014 21:29

(but sorry, I see where you said they'd balked later.)

Original poster
CrohnicallyDepressed · 29/07/2014 21:30

Thanks vicky and snatchoo

DH has started a new job recently- but we declared that pre-credit check and was told it wouldn't be a problem so long as they could see his employment contract.

We are using a broker but all she could tell us was that 'we hadn't declared everything'. We were pretty sure we had, which is why we got our credit reports- to check we hadn't been a victim of fraud! However, the second application was done through the bank our current account is with, therefore they had access to all of our incomings and outgoings before doing the credit check.

The first application we had a homebuyer survey done which showed no problems, the second application we didn't get that far.

I'm not sure about the % of used credit. That could be an issue as a lot of our joint debts are in DH's name.

Something has just occurred to me though, while we have been at the same address (and on the electoral roll) for a number of years, we did get married fairly recently and I changed my name. Could that be causing problems?

OP posts:
Original poster
CrohnicallyDepressed · 29/07/2014 21:32

brdgrl you are right! to even be considered for either mortgage we had to fill out budget sheets detailing our income, and specific outgoings. So how much you spend on food/groceries, utility bills, childcare, entertainment, etc. We passed this stage both times.

OP posts:
Frontier · 29/07/2014 21:34

How long have you been at your current address and are you on the electrol roll there?

KnackeredMuchly · 29/07/2014 21:35

I think you need an independent mortgage advisor. Ours was very good and told us why we failed - she's been excellent throughout the whole process

MotherOfInsomniacToddlers · 29/07/2014 21:38

We got married about a year before getting mortgage approved and didn't seem to cause a problem.
I feel for you, mortgages seem to make no sense at all!!

Frontier · 29/07/2014 21:39

x post. yes your change of name could well affect things - if "you" in the name on your application don't live at the address, as far as electrol role concerned. I would expect them to ask a few questions and get round that but if it's a completely automated process there may be no facility for them to do that.

Lauren83 · 29/07/2014 21:44

I have a mortgage and my experian rating is 997, I applied for a CC just to do a 0% balance transfer and got declined, checked experian and spoke to the bank they confirmed its as Im using 90% of the credit available to me, paying the minimum off my CC etc

I have never missed a payment or defaulted

Pobblewhohasnotoes · 29/07/2014 21:48

Are you using an independent mortgage advisor?

Some mortgage companies don't accept people that have started new jobs, but a mortgage advisor would know this. DH has just strayed a new job and we've been approved so it shouldn't be an issue. You're on the electoral roll I take it?

Pobblewhohasnotoes · 29/07/2014 21:48

*started

thatstoast · 29/07/2014 21:51

Did you declare your previous name?

Original poster
CrohnicallyDepressed · 29/07/2014 21:58

No thatstoast they never asked, but as it's the bank that has my current account they had all the documentation sent to them when I got married. I mean, there's other stuff they didn't ask for like current address, so I presumed if they didn't ask it's because they already had that info.

OP posts:
thatstoast · 29/07/2014 22:13

Ok, it might be worth double checking that your previous name is on the application. Also I would do this as a matter of course when making any further applications.

Have you updated all information into our married name? Electoral Roll and all credit agreements? This is worth doing. Lenders want everything in order and don't like it if people are using more than one name.