Credit check referral

[twolittleboysonetiredmum]

Hi
Really hoping for some advice as I'm confused!
We are applying for a mortgage through our financial advisor - he found us a great rate and submitted the credit check this afternoon. He said that it has been referred and they will respond within 48 hours. I'm guessing that means to be checked by a human rather than a computer. Why would this be? Is it a bad sign? What will they be checking? I'm guessing not bank statements etc as I don't think a credit check goes that far? Not that that's an issue, I just don't get where we are! Thanks

Why don't you stop guessing and access your credit reports online now?

Refer means there is some adverse on there. The question is how bad.

Did you submit bank statements with the application?

Did the broker specifically say that it is the credit check that threw up the referal (as your title suggests) ?

Have you seen your credit files yourselves? I would always recommend doing that before applying for something big like a mortgage.

This gives you info on how to do it - the most it should cost you is £6 each for a copy from all three agencies - well worth it for peace of mind. Though you can get a copy for free depending how you do it.

Oops! Forgot the link: www.moneysavingexpert.com/loans/check-free-credit-report

It's a bit late now to wait for the £2 copies. If she wants to know in a hurry she'll either have to cough up a touch more or wait and see if her mortgage goes through.

(28 days possibly for the statutory £2 copies by post)

Hi
Yes I've checked my credit report and it's fine - nothing dodgy on there. It didn't used to be as good but it's been long enough for any bad things to have gone. I checked through noddle. His exact words were I've submitted the credit check and it has been referred

I don't know what he submitted with the application - I have given him copies of everything eg bank statements, wage slips, p60 etc but I don't know if that's part of this stage or once you've passed the credit check? Does anyone know? Or does it vary on mortgage provider?

Your report with Experian might show different data. As might your Equifax report. The three are not always (or even usually) identical. If you don't know which CRA the lender is using then you really need to check all three.

It's all worth looking to see if any of the three agencies still show you as 'associated' with any ex partners. If so, the ex's file will also have been automatically searched and could potentially cause an issue.

Saying all that, the broker's wording is a bit ambiguous. It could be an affordability issue or similar that is causing the case to be referred.

They vary. For example, Halifax (and some of the group) does a weird DIP stage and then runs a full application with bank statements etc requested.

Thanks. I hadn't thought to check with all 3. We had a mortgage in principle with Halifax to check that I would be able to get a mortgage (as 5 years ago I couldn't) and he did it with them as they only do a soft search. I guess I'll just have to see what happens. We've gone quite far below what an affordability check on his system offered so hoped that might make things easier to be successful. I'm sure we'll get a mortgage with someone, it's just the rate was the best we've seen and I was quite excited by that prospect.

Just to warn you. It is not unusual for Halifax to agree initially and then refer/reject on the full application.

Enough that the first so called 'soft check' looks semi-pointless.

Get your three files together today and if this Halifax app fails, find another (whole of the market) broker and put all three in his hand.

Jessica, you can get a statutory £2 copy online with all 3 CRAs. We did it last year.

On the same day blibb? With both Equifax and Experian? No pins sent by post or anything?

Yep. As far as I remember anyway. I know mine definitely went through straight away with Experian, I had to do it that way as I'd had a free Credit Expert trial before and wasn't going to pay to sign up again

Ah so they knew who you were.

Oh god, the whole things just depressing. From the brief googling I've done, I think it's just the first part of application process so no bank statements etc just credit check and income/affordability. Which I thought we'd be ok with. Annoying if there are things hanging around in my credit report - I've worked really hard to get in a good position over the last 5 years and it should've cleared 2 years ago.

Honestly, just go on the websites now and look. Then you'll know.

Checking your credit by applying for a mortgage is a teeny bit backwards

I will - I thought I had checked! Argh!

When you say 'it should've cleared 2 years ago' what do you mean?

Things stay on your credit file for 6 years and anything adverse that is only 2 years old is likely to cause a referral.

Whether it is subsequently accepted or declined will depend on the extent of the issue and the lenders view on it.

Did your broker not ask to see all 3 versions of your credit report?

Sorry - that was a bit vague. I mean the negative activity was from 6+ years ago, 2 years ago. If that makes sense...as in the 6 year period of the last default ended 2 years ago - maybe 3 now I think about it. There were no ccjs or iva, mainly defaults and one 'gone missing' which was an error the company refused to correct.
He checked my report through experian - and through nowhere else to my knowledge.

He's not really a broker is he? Is he Halifax' own adviser? Or the EA's? Or? He works on volume rather than careful matching by the sound of it?

No he definitely is a broker, and definitely not an estate agent or Halifax one. I don't know about the volume thing. Maybe. Bleurgh

We're any of your defaults etc with any member of Lloyds banking group?

Your credit file might be clean but Halifax could check their own internal records further back than 6 years.