Credit reference agencies and mortgage application. UK?
I have obtained my credit file from Experian which is pretty good, no defaults, arrears, ccj’s etc, I’ve also had the one from equifax which is not good at all and also links me to an associate with bad credit. I applied for a mortgage online with a building society who I have been informed uses only Experian, I have the AIP and have now submitted a full application which has also been approved subject to valuation and electronic identity check. Will they use equifax as well as experian for the identity check, is this how it’s done? They have also asked for my ni number do they use it and if so what for?
I just found the following information attached to my application so I think it may well answer my question. The building society use Experian and in the info below it says agency not agencies, so fingers crossed.
We will attempt to electronically verify your identity and address for Anti Money Laundering purposes, through a credit reference agency on submission of a full application only. If we are unable to obtain this information we will ask you to provide us with identity and address verification.
You are exactly right! I do have something to hide, as I stated in the question there is an asscociate linked to me on my eqifax report with very bad credit and this would more than likely affect my application.
Thanks for you’re intelligent reply!
Most mortgage lenders use one or the other, not both. The majority do use Experian as it is more reliable and as long as this is clear then you should be ok. When electronically checking your id they will search to see if you are on the voters role at your current address, if you aren’t then you will have to provide them with a copy of your passport/driving license and a utility bill dated within the last 3 months. They don’t actually use your national insurance number for anything other than to prove that you are a UK resident and that you are who you say you are. All you need to do is (if you have already paid the Val fee) is wait for your valuation report to come back (hopefully ok). Hope this helps.
Will this loan affect my mortgage application?
My husband and I are trying to buy a house. We are going to be starting the mortgage application this week. (we are using FHA if that matters) I know the banks look at your debt to income ratio to partially judge if you can afford a loan. It is my understanding that they look at the car loans, school bills, credit cards, etc. that are on your credit report and do not count things like utilities that are not on your credit report. My husband has a school bill that is not on our credit report. It is non-interest and is paid directly to the school each month. Will this be counted in that ratio? Are they going to question why we are sending the school a check each month? thanks!
P.s. please do not assume we are getting ourselves in “over our head” with a mortgage. The mortgage for this house (with taxes and insurance included) will be less than what we have paid in rent for the past 5 years. I was just wondering if this was something we should disclose to them/if it would matter since it is not on our credit report. etc. Thanks to those who submitted helpful answers.
You do yourselves no favor by taking on a mortgage you really can’t afford. The bank wants to make you a loan, that is the way they make money. The stuff on the application is to really help insure that you are not getting in over your head. You don’t really want to go through foreclosure or bankruptcy in year or two do you? It is best to disclose all debits and monthly payments. What is the worse that can happen? Answer: they will decline your application and you’ll need to wait awhile until some of these are paid off. In this economy, with people still losing “secure” jobs, it is likely best to wait until you are absolutely sure that you are not getting in over your head.
Credit history for Mortgage?
I have good credit on my own. However, my fiance had to recently claim bankruptcy. Can I claim her income for a mortgage application without having a credit check done on her just on me?
Unfortunately NO!! Her credit will have to be ran. And with the market changing on a daily basis and guidelines becoming more and more strict it’s going to be a lot more challenging to get a loan with a low Fico. MOST banks look at the lower of the two Fico’s. So it is probably in your best interest to do this on your own. If your FICO is good enough you can do a Stated Income Stated Asset (SISA) Loan. However the rates for SISA loan are higher than if you were to actually prove your income to the bank. I would definitely go to a financial advisor and then work with an LO that you TRUST!! Remember don’t leave ANY details out……..tell the full scenario so that you get the most exact pricing……..OH and Remember to get EVERYTHING in writting. 🙂 Have any other questions email me firstname.lastname@example.org 🙂 I can hand you over to a great financial advisor if needed 🙂 take care
Hi, I applied for investment property mortgage with a banker but since my situation is a little unique (not working but do show rental income from investment properties), I am considering applying for a mortgage with a mortgage broker as well. you know, in case the banker does not approve me. My question is should I tell the mortgage broker that I also applied with this other bank? should I tell him something like “to be honest I have a banker and I also applied with him but in case there is an issue/he does not approve me or something I would be glad to work with /take the mortgage from you”? I think they might find out about each other through the credit check they do anyway, just not sure if/how to present it to them myself(?) If I don’y say anything and both approve me for example, how do I say no to the mortgage broker without affecting our relationship? I received his contact from my real restate agent so I better be nice to him. also, will it affect my process with the banker when/if he finds out i try with someone else too? you see if the banker approves me it will probably be much better financing conditions than the broker. so i don’t want to affect the probability he will approve me by applying elsewhere. on the other hand if i only apply with him and he does not approve me i might lose the property as i am limited in time. THANKS.
You won’t get approved.
You cannot use rental income in order to qualify for a loan if you are not working. It’s not a unique situation, lots of buyers try it, and “property investor” is not an approved profession with any of the programs through Fannie/Freddie or most other lenders.
Before you try to pull something like that, understand that the loan officer already knows this–and he’ll know you are lying. This is a well-known restriction in the industry.
I’ll be honest, there is no way you can get approved for the loan. I used to work as a mortgage underwriter in both subprime and A-paper markets, and I never once saw one go through.
How much will this affect our mortgage application?
6 years ago my partner closed down his bank account without paying off his overdraft of £500. Since then he has moved house quite a few time and now they have caught up with him. He has sorted out a payment plan and it will be paid off in 6 months. However the problem is that we want to buy a house in November, will this greatly affect our chances of getting a mortgage? We have already been approved one in principal so we obviously passed that credit check but will there be others before its finalised? If so will we be declined because of him?
Why guess? If you go to www.experian.co.uk you can get an actual check of your credit report, then you’ll know one way or the other.
It sounds like the debt wasn’t registered though, so you might have dodged a bullet.
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