Refused a mortgage after a soft check

[orlandobb]

My partner and I have been refused a mortgage after a soft check.
I think this is down to my credit history, it was poor but after 18 months of hard work is now excellent.
Does anyone have any advice on what we could do?

Did you apply direct or with a broker?

18 months isn't very long to turn around your credit score from poor to excellent.

What did you use to check your credit?

We went to HSBC directly. I have been using Experian

Have paid off all my debt, brought my car, paid off remaining loan, nothing is outstanding

Pandora79
How long does it normally take for a credit score to go from poor to good? I'm trying to do this myself

You could go through a broker. They will put your case forward to an actual human being. It might be that you just failed a "tick box criteria" if that makes sense. Did they say why you were refused? Could it be your partner?

Bad credit ‘events’ stay on your record for six years, so 18 months of perfect behaviour won’t erase all that, unfortunately. But you should definitely try with a broker, they should be able to get you a mortgage.

I doubt it, he is amazing with money and always has been. I have left a controlling ex husband and rebuilt my life so more likely me.

Would they stay in my credit file even though it says I have excellent rating now and nothing showing up?

Yes orlando. 3 years from when the bad debt was incurred you will be treated as less of a risk but 6 years for it to leave your credit file.

I still got a mortgage with a "very poor" credit rating but I had to use a broker

HSBC are notoriously fussy and anything other than a squeaky clean record will likely get rejected (always exceptions but generally speaking).

You are much better off getting copies of your credit reports and giving them to a broker to place you with a suitable lender.

You will get a mortgage, but a broker is best placed to know who with.

You say your partner is excellent with money, but could it be that he hasn't had enough debt/credit? I had an excellent credit score when I went for a mortgage after I split with my ex, we had massive debts keeping me awake at night, but always paid at least the minimum amounts every month. 14 years on I only have a small mortgage and no loans/credit cards and my credit score is rubbish because of it. Credit checks are about Your ability to repay debt, if you haven't got any to check you get a low score.

Would anyone be able to recommend a broker?

What area are you in

@HoobleDooble - I have missed payments on my credit report from when I was with my ex husband, 4 years ago, so more likely me.

@NotSuchASmugMarriedNow1 - we are in Twickenham

Give London and Country a call, they're free and really helpful

@Cheeseislife - thank you so much. Will do x

I’d second L & C, if you don’t get anywhere with them you’ll need someone who specialises in adverse credit mortgages in which case try Simply Investment (they’re expensive but excellent)

I worked in mortgages and your not always declined due to the credit search. They also use the credit search to work out how much money they will make from you in the future and weather they want you as a customer. (Ever wonder why first direct are so hard to be accepted into)

When we got a mortgage we went through a broker as he immediately knew from our circumstances and previous credit which lenders wouldn't look at us and we went with a company that's parent company is a mainstream bank anyway. As others have said they also can get more leeway with lenders so it's not always an automatic decline. Sorry it's annoying when you get declined.

Bad payments stay there for up to 6 years. So your credit score can be good overall, but the bad credit or repayments will show.

I got in a bad debt and it took 7 years for everything to disappear and me be able to get a mortgage. I had to be really careful for that whole time.

@Shortstuff08 - even though late payments are not showing on my credit report?

The lenders don’t see your score, they see all the information behind it and make their decision based on that.
Definitely see a broker, they will be able to find the lenders who are most likely to accept you. All lenders use different criteria.

In general, computer says no for Credit scoring or Affordability. Did you pass their affordability calculator, have u input earned income & any benefits? did u input number of children/dependants, child care costs, credit commitments, student loans? Are either of you currently named on a mortgage with an ex-partner?
Are you both on the voters register at current addresses? have u had multiple addresses in the last 3 years? "Scoring" differs from lender to lender & the pass threshold is stricter, the more you ask to borrow (the smaller % deposit that u have).