Turned down for mortgage online

[VivienScott]

I'm trying to apply for a mortgage. I've been turned down twice online because of my credit rating which is 'good' and not far off being 'excellent'.

However, the other month it was 'poor' because of my use of credit cards, there was a family emergency I had to withdraw cash and took it up to its limit. Since then I have paid it back and I'm paying down the limit overall, hence I've gone up to nearly excellent.

Does anyone know if it's this blip causing the mortgage applications to be turned down and the systems not updating? I've always paid my bills and before this had an excellent score.

It could be anything really. But you should keep in mind that the searches themselves will show on your credit file. If you apply for a mortgage today and it gets rejected, and you apply for another tomorrow, the fact you've applied for the first will show on your credit file. Numerous searches in a short amount of time can have an impact on your credit score.

Your best bet is to use an independent broker. They can check lender's criteria without applying, and hence without leaving any credit checks on your file. Ignore the score on your credit history, lenders look at what is actually on your record and not some arbitrary rating. Any late or missed payments will cause issues, as will such things as CCJs.

Check out VouchedFor for a good broker or PM me and I can recommend one.

Please do not apply for any more mortgages online.

There could be something simple that you are putting in your application which is causing the decline, rather than something in your report.

Go to a mortgage broker. They can discuss your case with an underwriter beforehand and see whether to apply or not.

Searches don't always update onto your file immediately but please tell the broker who you gave applied to so that they know to explain this to any future prospective lenders.

Good luck, OP.

Thanks all.

I got an agreement in principle in September from a face to face with a mortgage advisor at my bank in October before this happened when my score was excellent. I think I might try for a meeting again and try and negotiate as I have my current mortgage with them and it's way more than I want to borrow for my new house. I'm hoping common sense will prevail!

By the way, it's only agreement in principle I've been turned down for so far and apparently that only leaves a 'soft' marker on your file.

DIP's show on your file as searches and multiple searches have an impact on your rating. Lots of searches makes you look desperate.

Don't do any more until you have seen a broker.

I still think you would be better off with an independent broker. The ones in banks can only offer products from the bank, where as a good independent can access the whole of the market typically saving you money.

Vouched For gives you reviews of brokers for peace of mind.