rejected for Nat west B2L....bizarre

[Sarnie]

nikaiyo2 said:

130% rent to repayment ratio would seem to be the problem here

It's not, he simply failed the credit score.

[Craigybaby69]

130% was on the old mortgage anyway...new mortgage rent/mortgage ratio is nearly 200%, as would have been the nat west mortgage

[baptistsan]

Part of this concerns me slightly. As I've spent years saving a deposit I clearly haven't been spunking cash up the wall, getting things on finance and building up hefty credit card bills. I pay everything off in full and when I bought the car I paid cash. So this means that I have no real credit history anymore, other than the credit cards. So by trying to do the right thing I could well be screwed when I apply for a mortgage. Bonkers!

[Sarnie]

baptistsan said:

Part of this concerns me slightly. As I've spent years saving a deposit I clearly haven't been spunking cash up the wall, getting things on finance and building up hefty credit card bills. I pay everything off in full and when I bought the car I paid cash. So this means that I have no real credit history anymore, other than the credit cards. So by trying to do the right thing I could well be screwed when I apply for a mortgage. Bonkers!

Lender selection is key.......

[Ozzie Osmond]

Sarnie said:

Lender selection is key.......

As I've read this thread that was my reaction too. Need to find a human being who can engage brain and apply common sense rather than some basic box-ticking machine.

Mind you, if I was a bank (which I'm not) I'd be wondering why someone on £30k p.a. wants to take the plunge into btl even if they do own their own residence outright. If anything goes wrong in the btl project what cash resources can the borrower bring to bear - or will they simply default?

[Sarnie]

Ozzie Osmond said:

As I've read this thread that was my reaction too. Need to find a human being who can engage brain and apply common sense rather than some basic box-ticking machine.

This is true and is what people do not understand.

To pass an AIP with a lender you need a strong credit score. To get a strong credit score you need as much history of successfully repaying debt as possible. Paying for things cash and saving for things, whilst is obviously the preferable option if possible, doesn't help to build a history of you and repayment behaviour.

If you've never had any debt, how does a lender know how you are going to behave when you do?

[Burwood]

Sarnie said:

Ozzie Osmond said:

As I've read this thread that was my reaction too. Need to find a human being who can engage brain and apply common sense rather than some basic box-ticking machine.

This is true and is what people do not understand.

To pass an AIP with a lender you need a strong credit score. To get a strong credit score you need as much history of successfully repaying debt as possible. Paying for things cash and saving for things, whilst is obviously the preferable option if possible, doesn't help to build a history of you and repayment behaviour.

If you've never had any debt, how does a lender know how you are going to behave when you do?

It's admirable that you are defending your patch and no one is having a go at you but i'll let you know what constitutes debt. Mobile phone contract, landline, sky, power, water, Council tax. Bills are mostly credit based. Rent. I assume a non owner rents. Credit cards are again debts until you pay them. If the banks don't look at this history then that is just wrong. In any event the OP got what he wanted a few days later from a lender who actually had a brain cell.

[Sarnie]

Burwood said:

It's admirable that you are defending your patch and no one is having a go at you but i'll let you know what constitutes debt. Mobile phone contract, landline, sky, power, water, Council tax. Bills are mostly credit based. Rent. I assume a non owner rents. Credit cards are again debts until you pay them. If the banks don't look at this history then that is just wrong. In any event the OP got what he wanted a few days later from a lender who actually had a brain cell.

I'm not defending my patch. I don't make the decisions, I'm just telling you how lenders assess credit files, whether I agree with it or not, and I can tell you now, paying your mobile phone bill on time isn't going to carry much weight with a lender when you are asking them for hundreds of thousands of pounds......

[Craigybaby69]

I became an accidental landlord in 2004, moved in with the Mrs and didn't want to immediately sell in case the relationship went t1ts up, besides house prices were rising rapidly so if I'd sold but wanted to buy again I'd have needed a much bigger mortgage to get me to the same position...I never have got round to selling, mainly through procrastination...this is the first time I've remortgaged as well.
It be thing about only being on £30k doesn't wash when a lender says minimum salary £25k...

[Craigybaby69]

Sarnie said:

To pass an AIP with a lender you need a strong credit score. To get a strong credit score you need as much history of successfully repaying debt as possible. Paying for things cash and saving for things, whilst is obviously the preferable option if possible, doesn't help to build a history of you and repayment behaviour.

If you've never had any debt, how does a lender know how you are going to behave when you do?

Do you mean a strong credit score with equifax etc or their own in house credit score?

[Sarnie]

Craigybaby69 said:

Do you mean a strong credit score with equifax etc or their own in house credit score?

I'm talking about the lenders score cards. Any score indication on an Equifax/Experian credit report is just their interpretation of your data, but is in no way indicative of how a lender will assess your application.

[Craigybaby69]

What's your experience of nat west sarnie?

[Sarnie]

Craigybaby69 said:

What's your experience of nat west sarnie?

Pretty good to be fair, we do a lot of business with them as they can be more flexible with criteria than others.....