rejected for Nat west B2L....bizarre

[Craigybaby69]

Failed on the credit check before it even got to underwriting. I know I'm squeaky clean so obviously concerned. Signed up to Equifax and experian last night and scores showing as 515 (excellent) and 999 out of 999....so what's that all about?
A mistake by Nat west?
Nat west wanting to be at top of best buy tables but not offer any lending?
515 not high enough despite being excellent?

I'm bemused, confused and a little peed off

Cheers

[Sarnie]

Craigybaby69 said:

Failed on the credit check before it even got to underwriting. I know I'm squeaky clean so obviously concerned. Signed up to Equifax and experian last night and scores showing as 515 (excellent) and 999 out of 999....so what's that all about?
A mistake by Nat west?
Nat west wanting to be at top of best buy tables but not offer any lending?
515 not high enough despite being excellent?

I'm bemused, confused and a little peed off

Cheers

Did you apply direct or via a broker?

Are you sure you are eligible for a BTL with them?

Are you on the electoral roll?

Do you have sufficient credit history?

[Craigybaby69]

Broker, should be eligible, yes and yes...like I said, squeaky clean and everything in my favour

[R8VXF]

Craigybaby69 said:

Broker, should be eligible, yes and yes...like I said, squeaky clean and everything in my favour

Do you have any credit cards with extra large limits on them that you do not use? This can go against you as your available credit is a risk to other lenders.

[Craigybaby69]

One credit card usually put 500-1000 on it every month, think the limit is 7k but paid off every month. If there were any issues I wouldn't have such a high credit score would I?

[Craigybaby69]

One credit card usually put 500-1000 on it every month, think the limit is 7k but paid off every month. If there were any issues I wouldn't have such a high credit score would I?

[R8VXF]

Craigybaby69 said:

One credit card usually put 500-1000 on it every month, think the limit is 7k but paid off every month. If there were any issues I wouldn't have such a high credit score would I?

You have a good score because of the repayments, but you still pose a risk that you may start not paying it off. They don't just look at the score.

[Craigybaby69]

Makes sense, thanks

[JB!]

Natwest must have changed their risk models, I wanted to close an existing Credit Card with 0 outstanding, and re-open as a new customer, and bring a balance transfer over.

Nope. Computer says no.

MBNA were more than helpful though, 999 credit rating here also, and no mortgage, dependents and I earn ok.

[Sarnie]

Craigybaby69 said:

Broker, should be eligible, yes and yes...like I said, squeaky clean and everything in my favour

So what has your broker said?

He will have a BDM contact at Natwest like I do, who will be able to tell you if it's credit scoring or a criteria issue.....

[Craigybaby69]

Currently awaiting a response from the BDM

[bad company]

Craigybaby69 said:

Currently awaiting a response from the BDM

Look forward to hearing the response - if any. The BDM may not give a reason, he doesn't have to.

[Sarnie]

bad company said:

Look forward to hearing the response - if any. The BDM may not give a reason, he doesn't have to.

It's in his interests to give a reason, as a BDM his job is to facilitate business.....

[Craigybaby69]

I'm an insurance underwriter and we have to justify everything...not allowed to say "not telling"
Hopefully the same will apply here.

[Shaoxter]

Well what happened to me was they wouldn't give me a BTL mortgage because I don't have a residential mortgage (own it outright)!! So for some bizarre reason I was deemed more unsuitable than someone with an extra mortgage to pay...

[R8VXF]

Shaoxter said:

Well what happened to me was they wouldn't give me a BTL mortgage because I don't have a residential mortgage (own it outright)!! So for some bizarre reason I was deemed more unsuitable than someone with an extra mortgage to pay...

Mortgage your house to the value of the btl, pay cash for btl. Rent pays your mortgage.

[Shaoxter]

R8VXF said:

Shaoxter said:

Well what happened to me was they wouldn't give me a BTL mortgage because I don't have a residential mortgage (own it outright)!! So for some bizarre reason I was deemed more unsuitable than someone with an extra mortgage to pay...

Mortgage your house to the value of the btl, pay cash for btl. Rent pays your mortgage.

Good idea, but my plan has been to sell and move out of my current flat and use it for a deposit on a nice house. The BTL would be a separate thing on the side.

But we've been looking for houses for about 2 years so not exactly going according to plan

[Greshamst]

How were you notified of the decline, and what was the wording used? Don't forget that they also use fraud systems to pick up any inconsistencies between your mortgage application, and previous applications made for credit cards, bank accounts etc.

Unfortunately the credit score given by Experian/Equifax is purely a consumer score. It won't be the same as the scoring used by the individual bank, they'll have their own scorecard based on their own criteria. Are you self-employed?

[Craigybaby69]

Broker told me, said failed the credit score....employed by major insurance company for 5+ years, current address 8 years, never missed any payments for anything, on electoral register, 1 CC always paid off, no personal loans for years, no other credit other than main mortgage, B2L 75% LTV, rent 130% of mortgage...only thing I can think of is a salary in the 30's not high enough...but my understanding at this stage is it didn't get as far as underwriting, there isn't even an application number, just failed on the credit score.

[Sarnie]

Craigybaby69 said:

Broker told me, said failed the credit score....employed by major insurance company for 5+ years, current address 8 years, never missed any payments for anything, on electoral register, 1 CC always paid off, no personal loans for years, no other credit other than main mortgage, B2L 75% LTV, rent 130% of mortgage...only thing I can think of is a salary in the 30's not high enough...but my understanding at this stage is it didn't get as far as underwriting, there isn't even an application number, just failed on the credit score.

How much was you applying for?

This will be a problem for you, which is what I was referring to earlier when i mentioned "sufficient credit history";

"1 CC always paid off, no personal loans for years, no other credit other than main mortgage"

One card always paid off = no history of borrowing and repaying debt
No personal loans for years = see above
No other credit other than mortgage = see above

It sounds like you have very limited if any credit history. Lenders consider a lack of credit history to be only one rung up from bad credit history, as they have no previous evidence of debt management.

Numbers on Experian/Equifax reports mean nothing. They are just what those companies have cleverly come up with to get everyone subscribing to their services. A good score is in no way indicative that a lender will actually lend you money.