Will mortgage lender compensate him?
My Fiancé and I recently re-mortgaged our house. We went through a financial advisor who chose the best offer for us and helped us to apply for it. We did everything in the right order and in the right time frame and the mortgage application was accepted. Despite everything going smoothly, Barclays (the mortgage lender) pulled my Fiancé’s credit report 3 times instead of once. There was absolutely no reason that we can think of for them doing this. When your report is pulled several times in a short space of time, your credit score often deteriorates. This has happened to my Fiancé. His credit score was 999 excellent and is now 840 fair.
We called experian for advice. They told us to tell Barclays to withdraw two of the report pulls then contact experian and instruct them to amend his score. Okay fine except.. We applied for a personal loan for our wedding a few days ago. The personal loan company warned us that the applicant (my Fiancé) would need an excellent credit rating to be approved. We had checked his score just a few weeks earlier (for the re-mortgage) and had seen that is was still excellent. We knew that Barclay’s would soon be doing a pull for his report but also knew that one pull in 2 years will not cause your credit score to deteriorate. So we rightly assumed that his score was still excellent when we applied for the personal loan. We were wrong as Barclays has actually done 3 pulls. This meant that we were rejected for the personal loan that we applied for. So even if Barclays retract 2 of their pulls, we will still need the personal loan company to do a 2nd pull to prove that my Fiancé’s credit score is back to excellent. This 2nd pull from the personal loan lenders will probably have a detrimental effect on his credit score.. again. The personal loan lenders would never have had to do a 2nd pull if Barclay’s hadn’t mucked up his credit score in the first place.
Could we claim some sort of compensative for this from Barclays? If we can’t get his score back to excellent in a the next few days then we will have to apply for a loan with a higher interest rate. This will cost us £500!
Thanks for the feedback. No the re-mortgage was just for a better interest rate. The mortgage was for 75% of the property value – 5% less than before.
I have to disagree with the suggestion that lenders won’t lend to people with a mortgage. In fact a lender won’t touch you unless you ARE a homeowner as far as I know.