Refused A Mortgage Elsewhere
If you have been refused a mortgage by a lender does that mean that you will be turned down by other lenders, the short answer to that question is NO. What you should find out from the lender is on what basis you have been declined by them. If we are looking at a High Street lender it would in most cases that you have failed their credit score as the underwriting is computer based with the decision purely based on how many points you score with no input to that decision by an individual.
It is important at this stage to have access to your credit file in order that we may see what the problems are and are there any lenders who would accept your credit profile. There are number of issues that may impact on your credit profile which your credit file would reveal ;
1 Late or missed payments on unsecured credit.
2 Mortgage arrears
3 Credit Defaults
6 An IVA
7 Debt Management or a DRO order
8 Not being on the Electoral Register
9 Not having any form of active Banking or Credit
10 Using more that 50% of the available credit limit on your credit cards, mail order or overdraft limit on a regular basis.
You can gain access to your credit file with a one off payment by a debit card of £2 or op for a one month free trial from;
With our specialist lenders the decision to lend is based on a manual underwrite with common-sense playing some part in the decision making process. When we have viewed your credit file we would then be in a position to advise you correctly on how we may help you and what terms may apply.
Being turned down by a lender does not mean that other lenders will say no, we just have to make sure that you fit the lenders criteria and our illustration that we send you will reflect the terms of the product that we have placed with the lender of choice. If you are happy with the terms we would then run with your consent a Decision In Principal to prove to the Estate Agent or Vendor that you have an agreed mortgage in place subject to the formal application. This will also give you peace of mind and the confidence to go and look at properties knowing that you have an agreement in principal for your mortgage.
Nearly all of the High Street lenders when making a decision to lend, credit check and credit score you to arrive at a decision. Credit scoring is a points based decision made by the computer with no manual input to make that decision. In certain circumstances at a low loan to value, normally less than 75% LTV, a decision can be appealed if the decision is borderline, but this is very much an in house process, as the frontiers can change at any time, and we are not a party to that process.
We now have lenders who will consider a mortgage application up to 95% LTV based on a manual underwrite, where there have been no credit issues within the last 24 months.
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Turned Down for a Mortgage Elsewhere? Let us help!
Where does Michael J Alexander feature in the mortgage process, and how can we help when others have failed. If you have a failed application, we first have to identify why that application failed. Unless you have a memory with total recall over the last six years, you may have forgotten a financial transaction that impacts on your credit score, or you do not realize what are the factors that make the decision to lend or not as the case maybe. It is more likely that people who are rejected for multiple mortgage applications will need to consider a bad credit mortgage.
At this point we would suggest that you obtain a copy of your credit file from Experian, Equifax or Call Credit, a statutory copy of your credit file can be obtained for £2. When we have been able to view your file we can identify why you may have been declined and if there is a lender who would be prepared to lend in your current circumstances, or when they would accept an application.
Most of the lenders that we use where you have had some historical adverse credit, do not use the credit scoring system, and prefer to manually underwrite each application and the decision is based on what they see and how you have dealt with it.
No lender wants to take on a client who simply cannot be bothered to service their financial commitments, but as we all know sometimes circumstances overtake us, from marital breakdown, redundancy, health problems and family issues. All of these will be taken into account, as long as they are historical, and with some lenders they would have to be satisfied. Having a sight of your credit file us in the same position as the lender, we can see what the problems are and which lenders may help and what they will need from you prior to accepting an application.
You must expect that our lenders may need a slightly higher deposit, 15—-25%, and you may pay slightly more on the interest rate, but our lenders are ready to lend, and take a we want to lend attitude, rather than finding every which way to say no.
It will cost you £2 to obtain a copy of your statutory credit file, and we make no upfront charges, so it will cost you £2 to find out if we can help you. Call Michael J Alexander now on 03452 605506 or 07867 794837 to find out what we can do for you, or email us on firstname.lastname@example.org
The overall cost for comparison is 5% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.