Declined Mortgage in Principle - Mild State of Panic
Discussion
Mortgage adviser has just told us we've been declined an AIP from Halifax due to 'credit score'. They would not lend 95% but would agree to 90%.
Both of us have 4/5 on Noddle and well over 550 on Clearscore, with no adverse information on either.
Advisor has suggested we try again with Accord, who will also lend, in theory, far more than we require based on our income/expenditure (borrowing £275k, they'll give £359k).
She's suggested this is fairly commonplace and no big deal. Has anyone else had this experience? We're both a bit concerned as have always thought we have a reasonably good credit score/history.
The rate is a little higher with Accord, but only £20 a month so no big deal... more worrying is the variable rate it returns to is over 5%. What are the chances of us having this issue again in two years time?
Thanks!
Both of us have 4/5 on Noddle and well over 550 on Clearscore, with no adverse information on either.
Advisor has suggested we try again with Accord, who will also lend, in theory, far more than we require based on our income/expenditure (borrowing £275k, they'll give £359k).
She's suggested this is fairly commonplace and no big deal. Has anyone else had this experience? We're both a bit concerned as have always thought we have a reasonably good credit score/history.
The rate is a little higher with Accord, but only £20 a month so no big deal... more worrying is the variable rate it returns to is over 5%. What are the chances of us having this issue again in two years time?
Thanks!
We got declined as my wife owed £1.79 interest on a credit card she thought she had paid off 6 months ago, so it came up as "6 month arrears".
I said, "So we've been turned down for a quarter of a million pound mortgage because of £1.79?"
Absolutely nothing the mortgage advisor could do; he cannot override the system. The computer really does say "no".
My wife phoned the credit card company and they kindly agreed to remove it from the credit reference record. We will apply again in a week or two.
I said, "So we've been turned down for a quarter of a million pound mortgage because of £1.79?"
Absolutely nothing the mortgage advisor could do; he cannot override the system. The computer really does say "no".
My wife phoned the credit card company and they kindly agreed to remove it from the credit reference record. We will apply again in a week or two.
Alex said:
We got declined as my wife owed £1.79 interest on a credit card she thought she had paid off 6 months ago, so it came up as "6 month arrears".
I said, "So we've been turned down for a quarter of a million pound mortgage because of £1.79?"
Absolutely nothing the mortgage advisor could do; he cannot override the system. The computer really does say "no".
My wife phoned the credit card company and they kindly agreed to remove it from the credit reference record. We will apply again in a week or two.
Similar thing happened with us. I had a failed DD of some kind when switching banks and that showed up as arrears. Quick call sorted that out and we applied again in a few weeks.I said, "So we've been turned down for a quarter of a million pound mortgage because of £1.79?"
Absolutely nothing the mortgage advisor could do; he cannot override the system. The computer really does say "no".
My wife phoned the credit card company and they kindly agreed to remove it from the credit reference record. We will apply again in a week or two.
romeogolf said:
Mortgage adviser has just told us we've been declined an AIP from Halifax due to 'credit score'. They would not lend 95% but would agree to 90%.
Both of us have 4/5 on Noddle and well over 550 on Clearscore, with no adverse information on either.
Advisor has suggested we try again with Accord, who will also lend, in theory, far more than we require based on our income/expenditure (borrowing £275k, they'll give £359k).
She's suggested this is fairly commonplace and no big deal. Has anyone else had this experience? We're both a bit concerned as have always thought we have a reasonably good credit score/history.
The rate is a little higher with Accord, but only £20 a month so no big deal... more worrying is the variable rate it returns to is over 5%. What are the chances of us having this issue again in two years time?
Thanks!
If you want to lend at 95% LTV then your credit score needs to be squeeky clean.......that doesn't mean having no adverse credit history, it also means having sufficient history on your credit file (previous loans, credit cards etc etc) to build your credit score sufficiently to pass the AIP at 95%...............this isn't an affordability issue it seems but that your overall "score" isn't sufficient to be accepted at 95% with Halifax.Both of us have 4/5 on Noddle and well over 550 on Clearscore, with no adverse information on either.
Advisor has suggested we try again with Accord, who will also lend, in theory, far more than we require based on our income/expenditure (borrowing £275k, they'll give £359k).
She's suggested this is fairly commonplace and no big deal. Has anyone else had this experience? We're both a bit concerned as have always thought we have a reasonably good credit score/history.
The rate is a little higher with Accord, but only £20 a month so no big deal... more worrying is the variable rate it returns to is over 5%. What are the chances of us having this issue again in two years time?
Thanks!
With regards to Accord, I'd be very sceptical about trying Accord after Halifax given that they are a lot stricter with their requirements for credit scoring. They are a good lender who we do a lot of business with but they can be pedantic and will be a lot more thorough than Halifax would have been...........personally, I would not be sending an AIP that been declined with Halifax to Accord.........
Having been through the mortgage process with Sarnie this time last year, I can only suggest you heed his advice...he proved to me that he knows the market and the players in that market very well.
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
Having been through the mortgage process with Sarnie this time last year, I can only suggest you heed his advice...he proved to me that he knows the market and the players in that market very well.
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
Having been through the mortgage process with Sarnie this time last year, I can only suggest you heed his advice...he proved to me that he knows the market and the players in that market very well.
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
It has been well reported the AIP is worth little more than the paper its written on and insight into the underwriting criteria and methods / approaches the providers adopt through the formal application is invaluable...
Can your finances support finding another 5% deposit and accept the 90% AIP and perhaps enjoy a less intrusive questionnaire from Halifax ?
Sarnie said:
If you want to lend at 95% LTV then your credit score needs to be squeeky clean.......that doesn't mean having no adverse credit history, it also means having sufficient history on your credit file (previous loans, credit cards etc etc) to build your credit score sufficiently to pass the AIP at 95%...............this isn't an affordability issue it seems but that your overall "score" isn't sufficient to be accepted at 95% with Halifax.
With regards to Accord, I'd be very sceptical about trying Accord after Halifax given that they are a lot stricter with their requirements for credit scoring. They are a good lender who we do a lot of business with but they can be pedantic and will be a lot more thorough than Halifax would have been...........personally, I would not be sending an AIP that been declined with Halifax to Accord.........
Hi Sarnie - It's an odd one, surely someone else in the same profession as you would know that their criteria will be stricter, and only recommend them if they feel we're likey to be accepted?With regards to Accord, I'd be very sceptical about trying Accord after Halifax given that they are a lot stricter with their requirements for credit scoring. They are a good lender who we do a lot of business with but they can be pedantic and will be a lot more thorough than Halifax would have been...........personally, I would not be sending an AIP that been declined with Halifax to Accord.........
In terms of credit scoring, I don't really know what would make our score adverse. We both use credit cards which are paid off in full each month, I have a car loan with no missed payments, we've both got mobile phone contracts, on the electoral roll, I have two mortgages in my name already etc etc... None of which have any missed payments.
Is there a lender you suggest we look at instead of Accord, then? I don't want another declined loan, I'd rather just get it right.
romeogolf said:
Hi Sarnie - It's an odd one, surely someone else in the same profession as you would know that their criteria will be stricter, and only recommend them if they feel we're likey to be accepted?
In terms of credit scoring, I don't really know what would make our score adverse. We both use credit cards which are paid off in full each month, I have a car loan with no missed payments, we've both got mobile phone contracts, on the electoral roll, I have two mortgages in my name already etc etc... None of which have any missed payments.
Is there a lender you suggest we look at instead of Accord, then? I don't want another declined loan, I'd rather just get it right.
It may not neccessarily be credit score...............it could be the property type..........it could be the age of the property.....it could be your employment profile.........it could be all manner of issues...........with all due respect, your broker should have phoned Halifax straight after the decline decision and found out why it was declined, any broker worth their salt would want to know why it had been declined and then take that info straight to the next lender (before submitting another AIP) to find out how that would assess th the reason had declined your AIP.............it's not particularly great that you have to resort to an internet forum to try and find out why your AIP may have been declined, this should all be directed to your broker........In terms of credit scoring, I don't really know what would make our score adverse. We both use credit cards which are paid off in full each month, I have a car loan with no missed payments, we've both got mobile phone contracts, on the electoral roll, I have two mortgages in my name already etc etc... None of which have any missed payments.
Is there a lender you suggest we look at instead of Accord, then? I don't want another declined loan, I'd rather just get it right.
Sarnie said:
It may not neccessarily be credit score...............it could be the property type..........it could be the age of the property.....it could be your employment profile.........it could be all manner of issues...........with all due respect, your broker should have phoned Halifax straight after the decline decision and found out why it was declined, any broker worth their salt would want to know why it had been declined and then take that info straight to the next lender (before submitting another AIP) to find out how that would assess th the reason had declined your AIP.............it's not particularly great that you have to resort to an internet forum to try and find out why your AIP may have been declined, this should all be directed to your broker........
I've asked her to call me today before going fwd with Accord. It's hard to know this from a consumer side, you just assume your broker knows what they're doing. Is there a way I can contact you directly and see if you'd be able to help?romeogolf said:
I've asked her to call me today before going fwd with Accord. It's hard to know this from a consumer side, you just assume your broker knows what they're doing. Is there a way I can contact you directly and see if you'd be able to help?
Yeah, drop me a PM/email........... or you can call on 0333 014 5656 
XMT said:
this happens a lot. My friend went for a mortgage recently and had it planned to have a 5% deposit. He made the application and they found a missed payment due to a bank account switch and because of 15 pounds they asked for a 10% deposit instead.
Most AIP systems will have preset algorythms...........such as......"If any missed payments are detected with x amount of months, return a decision of 90% LTV lending".............The amount of the payment missed is irrelevant, it's simply the fact that the credit file returns the information that there is a missed payment within a certain period of time.
If that payment is a low amount or there was a simple reason for it, it makes it more frustrating for sure but AIP systems cannot deviate from the preset criteria set by the lender......
My Current Broker said:
I have completed your agreement in principle with Accord, and it has been referred to an underwriter.
This is where the computer says “possibly” but needs to get a human to check the case….
They aim to respond normally within 4 hours.
I shall of course let you know asap.
Sarnie has given excellent advice, I'm giving my current broker another shot before deciding she's not worthwhile but will keep the thread updated with any details so if anyone else has this experience they can look back at it This is where the computer says “possibly” but needs to get a human to check the case….
They aim to respond normally within 4 hours.
I shall of course let you know asap.
romeogolf said:
My Current Broker said:
I have completed your agreement in principle with Accord, and it has been referred to an underwriter.
This is where the computer says “possibly” but needs to get a human to check the case….
They aim to respond normally within 4 hours.
I shall of course let you know asap.
Sarnie has given excellent advice, I'm giving my current broker another shot before deciding she's not worthwhile but will keep the thread updated with any details so if anyone else has this experience they can look back at it This is where the computer says “possibly” but needs to get a human to check the case….
They aim to respond normally within 4 hours.
I shall of course let you know asap.
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