FTB mortgage declined - what next!?
Discussion
I started a thread a while ago re. being a first-time buyer and an offer being accepted on a house...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Long story short now is that I'm no longer wanting to purchase the property mentioned in that thread, and instead had an offer accepted on a different property at £131K.
Having been into a branch of HSBC for a mortgage appointment last Friday, providing all the documentation and supporting evidence, I got a call this Tuesday to say that my application had been immediately rejected at stage one - the credit check. They were unable to advise specifically why but did advise being rejected so early would point to there being something 'seriously wrong' with my credit profile. This has understandably gotten me very worried.
I signed up to to Experian several months ago in anticipation I was going to start applying for mortgages around now, to check all was in order. And everything appears to be absolutely fine. I know the score itself is meaningless but it's consistently been 999/999.
I'm 31 with a 10% deposit want want to borrow £117K.
My salary excluding bonus is £48K so I'm not trying to overreach and the rejection was not based on affordability anyhow
I have no dependents and I have no debts or loans
Both credit cards have no outstanding balance and haven't had heavy use in the past
I have no financial commitments
I've never defaulted on any past payments and any borrowings in the past have been paid off in full, and often earlier than the loan agreements. The last loan I had was 4 years ago
My outgoings are minimal, with direct debits only covering utilities and council tax etc
I have a company car so I've no associated running costs
Student loan is paid off in full
The stumbling blocks that I could imagine might be:
A summons I received for non-payment of council tax a year ago. I paid in full hours after receiving the letter and the summons was immediately cancelled. I rang the local council tax office and they confirmed this, and also confirmed they have never passed this detail on to anyone else. My credit file makes no mention of it so I don't believe it's an issue.
A late payment to Spark Energy (absolute utter scumbags and a shower of b
ds) early this year. Long story short is I'd switched energy providers and Spark continued to bill me. I disputed the bill and they allegedly got referred to a debt recovery firm. The balance was immediately paid in full over the phone. I then got a phone call from them a month or so later asking for payment. After I very politely corrected them, they realised it was 'an error'. Again, there's no mention of this on my credit file.
I applied for a First Direct (HSBC) bank account in January and they requested that I have a professional sign copies of my passport etc to confirm my identity. I couldn't be bothered with the hassle and faffing about and didn't pursue it.
My credit file shows 'U' next to some repayments for old loans - this means 'unknown' - but it then followed by a green 'on time' tick for every subsequent payment. These are not missed payments and there's a separate code for this.
After applying to be added to the electoral role 2 months ago, I'm apparently on there as of yesterday but wasn't at the time of the application. I understand being on the electoral role counts for something when applying for a mortgage.
What are your thoughts? I sent a copy of my credit file to a broker and they couldn't see why it'd be a cause of a rejection.
I'm not sure where to go next with this. What are your thoughts? Go to a decent broker - I've used London and Country at the recommendation of MoneySavingExpert - would it be a good idea to go back to them, and if so should I tell them about HSBC's rejection? Or continue with an application I'm about to make with Nationwide?
Or maybe it's an omen I'm maybe buying at the top of the market and the wheels are about to fall off the whole market soon anyhow!
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Long story short now is that I'm no longer wanting to purchase the property mentioned in that thread, and instead had an offer accepted on a different property at £131K.
Having been into a branch of HSBC for a mortgage appointment last Friday, providing all the documentation and supporting evidence, I got a call this Tuesday to say that my application had been immediately rejected at stage one - the credit check. They were unable to advise specifically why but did advise being rejected so early would point to there being something 'seriously wrong' with my credit profile. This has understandably gotten me very worried.
I signed up to to Experian several months ago in anticipation I was going to start applying for mortgages around now, to check all was in order. And everything appears to be absolutely fine. I know the score itself is meaningless but it's consistently been 999/999.
I'm 31 with a 10% deposit want want to borrow £117K.
My salary excluding bonus is £48K so I'm not trying to overreach and the rejection was not based on affordability anyhow
I have no dependents and I have no debts or loans
Both credit cards have no outstanding balance and haven't had heavy use in the past
I have no financial commitments
I've never defaulted on any past payments and any borrowings in the past have been paid off in full, and often earlier than the loan agreements. The last loan I had was 4 years ago
My outgoings are minimal, with direct debits only covering utilities and council tax etc
I have a company car so I've no associated running costs
Student loan is paid off in full
The stumbling blocks that I could imagine might be:
A summons I received for non-payment of council tax a year ago. I paid in full hours after receiving the letter and the summons was immediately cancelled. I rang the local council tax office and they confirmed this, and also confirmed they have never passed this detail on to anyone else. My credit file makes no mention of it so I don't believe it's an issue.
A late payment to Spark Energy (absolute utter scumbags and a shower of b
ds) early this year. Long story short is I'd switched energy providers and Spark continued to bill me. I disputed the bill and they allegedly got referred to a debt recovery firm. The balance was immediately paid in full over the phone. I then got a phone call from them a month or so later asking for payment. After I very politely corrected them, they realised it was 'an error'. Again, there's no mention of this on my credit file.I applied for a First Direct (HSBC) bank account in January and they requested that I have a professional sign copies of my passport etc to confirm my identity. I couldn't be bothered with the hassle and faffing about and didn't pursue it.
My credit file shows 'U' next to some repayments for old loans - this means 'unknown' - but it then followed by a green 'on time' tick for every subsequent payment. These are not missed payments and there's a separate code for this.
After applying to be added to the electoral role 2 months ago, I'm apparently on there as of yesterday but wasn't at the time of the application. I understand being on the electoral role counts for something when applying for a mortgage.
What are your thoughts? I sent a copy of my credit file to a broker and they couldn't see why it'd be a cause of a rejection.
I'm not sure where to go next with this. What are your thoughts? Go to a decent broker - I've used London and Country at the recommendation of MoneySavingExpert - would it be a good idea to go back to them, and if so should I tell them about HSBC's rejection? Or continue with an application I'm about to make with Nationwide?
Or maybe it's an omen I'm maybe buying at the top of the market and the wheels are about to fall off the whole market soon anyhow!
thenortherner said:
I started a thread a while ago re. being a first-time buyer and an offer being accepted on a house...
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Long story short now is that I'm no longer wanting to purchase the property mentioned in that thread, and instead had an offer accepted on a different property at £131K.
Having been into a branch of HSBC for a mortgage appointment last Friday, providing all the documentation and supporting evidence, I got a call this Tuesday to say that my application had been immediately rejected at stage one - the credit check. They were unable to advise specifically why but did advise being rejected so early would point to there being something 'seriously wrong' with my credit profile. This has understandably gotten me very worried.
I signed up to to Experian several months ago in anticipation I was going to start applying for mortgages around now, to check all was in order. And everything appears to be absolutely fine. I know the score itself is meaningless but it's consistently been 999/999.
I'm 31 with a 10% deposit want want to borrow £117K.
My salary excluding bonus is £48K so I'm not trying to overreach and the rejection was not based on affordability anyhow
I have no dependents and I have no debts or loans
Both credit cards have no outstanding balance and haven't had heavy use in the past
I have no financial commitments
I've never defaulted on any past payments and any borrowings in the past have been paid off in full, and often earlier than the loan agreements. The last loan I had was 4 years ago
My outgoings are minimal, with direct debits only covering utilities and council tax etc
I have a company car so I've no associated running costs
Student loan is paid off in full
The stumbling blocks that I could imagine might be:
A summons I received for non-payment of council tax a year ago. I paid in full hours after receiving the letter and the summons was immediately cancelled. I rang the local council tax office and they confirmed this, and also confirmed they have never passed this detail on to anyone else. My credit file makes no mention of it so I don't believe it's an issue.
A late payment to Spark Energy (absolute utter scumbags and a shower of bds) early this year. Long story short is I'd switched energy providers and Spark continued to bill me. I disputed the bill and they allegedly got referred to a debt recovery firm. The balance was immediately paid in full over the phone. I then got a phone call from them a month or so later asking for payment. After I very politely corrected them, they realised it was 'an error'. Again, there's no mention of this on my credit file.
I applied for a First Direct (HSBC) bank account in January and they requested that I have a professional sign copies of my passport etc to confirm my identity. I couldn't be bothered with the hassle and faffing about and didn't pursue it.
My credit file shows 'U' next to some repayments for old loans - this means 'unknown' - but it then followed by a green 'on time' tick for every subsequent payment. These are not missed payments and there's a separate code for this.
After applying to be added to the electoral role 2 months ago, I'm apparently on there as of yesterday but wasn't at the time of the application. I understand being on the electoral role counts for something when applying for a mortgage.
What are your thoughts? I sent a copy of my credit file to a broker and they couldn't see why it'd be a cause of a rejection.
I'm not sure where to go next with this. What are your thoughts? Go to a decent broker - I've used London and Country at the recommendation of MoneySavingExpert - would it be a good idea to go back to them, and if so should I tell them about HSBC's rejection? Or continue with an application I'm about to make with Nationwide?
Or maybe it's an omen I'm maybe buying at the top of the market and the wheels are about to fall off the whole market soon anyhow!
Hi Northerner,http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Long story short now is that I'm no longer wanting to purchase the property mentioned in that thread, and instead had an offer accepted on a different property at £131K.
Having been into a branch of HSBC for a mortgage appointment last Friday, providing all the documentation and supporting evidence, I got a call this Tuesday to say that my application had been immediately rejected at stage one - the credit check. They were unable to advise specifically why but did advise being rejected so early would point to there being something 'seriously wrong' with my credit profile. This has understandably gotten me very worried.
I signed up to to Experian several months ago in anticipation I was going to start applying for mortgages around now, to check all was in order. And everything appears to be absolutely fine. I know the score itself is meaningless but it's consistently been 999/999.
I'm 31 with a 10% deposit want want to borrow £117K.
My salary excluding bonus is £48K so I'm not trying to overreach and the rejection was not based on affordability anyhow
I have no dependents and I have no debts or loans
Both credit cards have no outstanding balance and haven't had heavy use in the past
I have no financial commitments
I've never defaulted on any past payments and any borrowings in the past have been paid off in full, and often earlier than the loan agreements. The last loan I had was 4 years ago
My outgoings are minimal, with direct debits only covering utilities and council tax etc
I have a company car so I've no associated running costs
Student loan is paid off in full
The stumbling blocks that I could imagine might be:
A summons I received for non-payment of council tax a year ago. I paid in full hours after receiving the letter and the summons was immediately cancelled. I rang the local council tax office and they confirmed this, and also confirmed they have never passed this detail on to anyone else. My credit file makes no mention of it so I don't believe it's an issue.
A late payment to Spark Energy (absolute utter scumbags and a shower of b
ds) early this year. Long story short is I'd switched energy providers and Spark continued to bill me. I disputed the bill and they allegedly got referred to a debt recovery firm. The balance was immediately paid in full over the phone. I then got a phone call from them a month or so later asking for payment. After I very politely corrected them, they realised it was 'an error'. Again, there's no mention of this on my credit file.I applied for a First Direct (HSBC) bank account in January and they requested that I have a professional sign copies of my passport etc to confirm my identity. I couldn't be bothered with the hassle and faffing about and didn't pursue it.
My credit file shows 'U' next to some repayments for old loans - this means 'unknown' - but it then followed by a green 'on time' tick for every subsequent payment. These are not missed payments and there's a separate code for this.
After applying to be added to the electoral role 2 months ago, I'm apparently on there as of yesterday but wasn't at the time of the application. I understand being on the electoral role counts for something when applying for a mortgage.
What are your thoughts? I sent a copy of my credit file to a broker and they couldn't see why it'd be a cause of a rejection.
I'm not sure where to go next with this. What are your thoughts? Go to a decent broker - I've used London and Country at the recommendation of MoneySavingExpert - would it be a good idea to go back to them, and if so should I tell them about HSBC's rejection? Or continue with an application I'm about to make with Nationwide?
Or maybe it's an omen I'm maybe buying at the top of the market and the wheels are about to fall off the whole market soon anyhow!
I am a qualified mortgage broker.
Yes absolutely get a broker to help you.
HSBC had no intention of approving your application regardless of what they said to you.
As a lender they only lend very cheaply to what they consider to be riskless cases.
L&c are panel brokers so do not have access to the whole of market, not saying they don't have a decent panel, but it is not whole of market.
Based on the info you provided, your case could be placed very easily.
Pm me if you want to arrange a phone chat, and I I can give you some advice.
Cheers,
Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that.
Got to admit, the guy from HSBC had me worried and panicking when he said it was something likely to be serious. He also said they no longer make available the decision making tree to mortgage advisors so they're unable to see what would have caused a rejection. But as some of you have said, maybe they'd no intention of lending to me regardless - they're presumably looking for somebody with much more than 10% deposit.
Nationwide's rates are comparable, and most of their FTB mortgages are geared towards as little as 5% deposits, so guessing they're more accommodating.
Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that.
Got to admit, the guy from HSBC had me worried and panicking when he said it was something likely to be serious. He also said they no longer make available the decision making tree to mortgage advisors so they're unable to see what would have caused a rejection. But as some of you have said, maybe they'd no intention of lending to me regardless - they're presumably looking for somebody with much more than 10% deposit.
Nationwide's rates are comparable, and most of their FTB mortgages are geared towards as little as 5% deposits, so guessing they're more accommodating.
thenortherner said:
Cheers,
Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that.
Got to admit, the guy from HSBC had me worried and panicking when he said it was something likely to be serious. He also said they no longer make available the decision making tree to mortgage advisors so they're unable to see what would have caused a rejection. But as some of you have said, maybe they'd no intention of lending to me regardless - they're presumably looking for somebody with much more than 10% deposit.
Nationwide's rates are comparable, and most of their FTB mortgages are geared towards as little as 5% deposits, so guessing they're more accommodating.
Lenders can decline a mortgage application without giving a reason for as little as being in a bad mood. The AIP is computerised, but the final decision would be made by an underwriter..Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that.
Got to admit, the guy from HSBC had me worried and panicking when he said it was something likely to be serious. He also said they no longer make available the decision making tree to mortgage advisors so they're unable to see what would have caused a rejection. But as some of you have said, maybe they'd no intention of lending to me regardless - they're presumably looking for somebody with much more than 10% deposit.
Nationwide's rates are comparable, and most of their FTB mortgages are geared towards as little as 5% deposits, so guessing they're more accommodating.
Forget about HSBC, they advertise good products but their criteria is extremely stringent.
Out of interest who do you bank with?
I bank with NatWest and it's the only account I've had since 1999. Any previous credit or loans in the past has been with them.
My address history probably also lets me down. Looking at Experian, I've had 10 addresses in 7 years, all due to moving around with work or landlords wanting their property back etc.
My address history probably also lets me down. Looking at Experian, I've had 10 addresses in 7 years, all due to moving around with work or landlords wanting their property back etc.
hornetrider said:
Evanivitch said:
Could have been the electoral role. It's one of those stupid tick box checks.
Agreed. And then I did an experience check and it showed the electoral roll as a red item and I calmed down and sorted it out.
thenortherner said:
I bank with NatWest and it's the only account I've had since 1999. Any previous credit or loans in the past has been with them.
My address history probably also lets me down. Looking at Experian,k I've had 10 addresses in 7 years, all due to moving around with work or landlords wanting their property back etc.
Have you ever thought about buying rather than renting? My address history probably also lets me down. Looking at Experian,k I've had 10 addresses in 7 years, all due to moving around with work or landlords wanting their property back etc.
thenortherner said:
Cheers,
Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that..
Why surprised, it's an import identifier. Many lenders will auto reject if not on the electoral roll, so without being on it you don't have a chance.Cannot believe how long it takes to get added to the electoral role!
I'm stunned as to how rigid and 'computer says no' the decision making is based on something like that..
Due to the changes that came it this year I fell off the roll. I completed the government online details and my council added me the following working day.
Hsbc are the biggest pile of useless walkers ever.
Had banked with them since I was a kid. Went to them and got a mortgage in principle certificate etc. Made an offer went back to them and they refused to honour there commitment.
I could have kicked upmarket big fuss but instead I took my business to the Halifax who gave me what I wanted with no drama
Had banked with them since I was a kid. Went to them and got a mortgage in principle certificate etc. Made an offer went back to them and they refused to honour there commitment.
I could have kicked upmarket big fuss but instead I took my business to the Halifax who gave me what I wanted with no drama
Hi Thenorthener
Very interesting to read your post, I'm in a very similar situation at the moment (FTB, had an offer accepted, DiP from Nationwide and Lloyds, 10% deposit, 30yrs old earning 47k). I haven't gone through the full application though yet as waiting for the chain to complete..
Could I ask did you get a successful DiP from HBSC before applying for the full mortgage?
Cheers
Tim
Very interesting to read your post, I'm in a very similar situation at the moment (FTB, had an offer accepted, DiP from Nationwide and Lloyds, 10% deposit, 30yrs old earning 47k). I haven't gone through the full application though yet as waiting for the chain to complete..
Could I ask did you get a successful DiP from HBSC before applying for the full mortgage?
Cheers
Tim
T1547 said:
Hi Thenorthener
Very interesting to read your post, I'm in a very similar situation at the moment (FTB, had an offer accepted, DiP from Nationwide and Lloyds, 10% deposit, 30yrs old earning 47k). I haven't gone through the full application though yet as waiting for the chain to complete..
Could I ask did you get a successful DiP from HBSC before applying for the full mortgage?
Cheers
Tim
Hi,Very interesting to read your post, I'm in a very similar situation at the moment (FTB, had an offer accepted, DiP from Nationwide and Lloyds, 10% deposit, 30yrs old earning 47k). I haven't gone through the full application though yet as waiting for the chain to complete..
Could I ask did you get a successful DiP from HBSC before applying for the full mortgage?
Cheers
Tim
Yep, DIP received in HSBC branch and all was looking fine until the knock back.
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