Reply to: I think my MVL may be affecting my personal credit rating

[zippy.mini]

So it appears that it was all a big panic over nothing.

I still don't know why Natwest didn't want to let us open a joint Platinum Select account, but with regards to the mortgage, it turns out they were having IT issues yesterday. The system was down on Monday so my broker couldn't do the application then, so he did it on Tuesday and it turns out they were still having intermittent problems. The application he submitted didn't actually do a credit check at all, it just bombed out and gave the declined message with no other warnings. When he called them up to find out what happened, they couldn't even get into the application using the reference number or anything else. So she asked him to key it all in again and hey presto! We have our agreement in principle

Sorry if I scared anyone. It was the 2 declines that got me thinking, now I know it's all ok I'm going to stop worrying about it.

[ELBBUBKUNPS]

Plus the more applications/searches you have on your report, the worse it gets! I want to get to the bottom of why this is happening before we try again because if its not my MVL it makes no sense - and if it is, we'll apply solely in my husbands name. But that's far from ideal and people ought to know.

Are the bank for the current account refusal able to give you more detail ?

Edit : Worth noting that the banks these days wont soley decide based on your credit score from the credit agencies, this will just be part of the decision, so though the credit rating may be fine, they have possibly linked the MVL to you as a director and as part of there own internal credit model decided being a director of an MVL is a no-no.

[cojak]

Plus the more applications/searches you have on your report, the worse it gets! I want to get to the bottom of why this is happening before we try again because if its not my MVL it makes no sense - and if it is, we'll apply solely in my husbands name. But that's far from ideal and people ought to know.

Then contact Experian/Equifax for advice. They are quite helpful in this respect.

[zippy.mini]

I think my MVL may be affecting my personal credit rating

Plus the more applications/searches you have on your report, the worse it gets! I want to get to the bottom of why this is happening before we try again because if its not my MVL it makes no sense - and if it is, we'll apply solely in my husbands name. But that's far from ideal and people ought to know.

[zippy.mini]

I think my MVL may be affecting my personal credit rating

That business decision is completely up to the company you were dealing with, nowt to do with the credit reference agencies.

Go to another provider, thet may give you a different answer depending on their (less conservative) business model.

Whilst I understand that, what worries me is that we were also declined a CURRENT account from Natwest as well. Admittedly it was their Platinum Select account but we didn't expect to be credit checked for this and yet we were. My husband managed to upgrade an existing account he had with them so the implication is that the problem is somehow me...

[cojak]

We have 1 other BTL. The new one would have been rent >125% of mortgage payment. Admittedly not much more in this case, but we are able to put down more deposit if needed and the rent figure used was very conservative. If it was a question of numbers, I would have hoped they would refer rather than straight out decline?

That business decision is completely up to the company you were dealing with, nowt to do with the credit reference agencies.

Go to another provider, thet may give you a different answer depending on their (less conservative) business model.

[zippy.mini]

I think my MVL may be affecting my personal credit rating

We have 1 other BTL. The new one would have been rent >125% of mortgage payment. Admittedly not much more in this case, but we are able to put down more deposit if needed and the rent figure used was very conservative. If it was a question of numbers, I would have hoped they would refer rather than straight out decline?

[northernladuk]

There are many reasons beyond your credit score that can affect this nowadays. Sometimes your credit score can be too good if the product isn't aimed at people with good credit. You just don't meet the criteria for the product. You can get refused for having too much credit as well. BTL's and even normal mortgages when you have BTL's are getting more stringent. In the past a normal mortgage completely ignored BTL's but found this time when I applied they take in to account a certain amount from the BTL's incase it is empty when evaluating how much I could borrow.

How many BTL's do you have and what is the difference between the rent/mortgage? Even though in theory as long as you have the deposit they shouldn't care I suspect they will start factoring in your other BTLs and commitments incase the property is empty for a period which will affect your personal income.

[Maslins]

It would be good if someone could confirm, with 100% certainty, whether there is an impact or not.

I guess only the credit agencies will know for sure, and they seem unable to advise. It appears their reports in your case don't show anything re the MVL...but I appreciate that doesn't 100% guarantee there isn't a hidden impact.

MVLs are by definition solvent liquidations, meaning no creditors were left unpaid. It's also a company thing not a personal thing. So my opinion (just my opinion) is that I can't see any logical reason why it would have a negative impact on director/shareholder credit ratings.

[ELBBUBKUNPS]

No and No

Thanks, if all look good then I think its only the bank who can tell you why, the only way I could see them linking the MVL to you is by cross checking your name against file they get about company credit ratings. The MVL would be logged on the company credit file even before its finalised, so even before its all sorted the company rating with be rubbish.

Anyone else who has been through an MVL had problems with credit ?

[zippy.mini]

Zippy.mini, were you business accounts at the same bank you tried to get the mortgage and new premier acccount through, also was you partner who didnt have issues with credit check a director of you MVL'd company ?

No and No

[zippy.mini]

Please let us know what you find out, alot of us work in financial services so an issue with credit checks = no contract.

I remeber from you previous posts you did MVL and then went contracting again did you setup a new ltd etc ? I know lenders etc tend to want to see a year plus / accounts on a ltd before lending.

I did go back to contracting but I'm working through an Umbrella this time around. For the purposes of the mortgage application, we said that I'm not working as that was the information used on the previous application (that was successful and is running fine)... My earnings will always be unreliable, so I didn't want any decision to be based on what I'm currently brining in. It shouldn't be anyway for a BTL mortgage, it's the rent that's most important. Hubby easily satisfies the earnings criteria they do stipulate (at least one party has to earn at least £25k).

I've now checked all 3 - Experian, Equifax and Noddle (Call Credit). I'm in the excellent bracket for all. So I've really got no idea what's going on here. The only thing is that there are 3 searches on my file in the last 6 months. 2 from when we took out the previous mortgage in August (we changed our mind who we wanted to go with) and one for that Natwest account I mentioned above. Hardly excessive!

[ELBBUBKUNPS]

+1

Equifax and Experian are mature players in this market (indeed I my last permie job was with one of them many years ago) and so their data are pretty accurate. Call Credit is the new boy in town so I'm not surprised that their data aren't.

Contact all for your credit info, but I would also call either Equifax or Experian for (generic*) advice on your MVL.

Personally I would be surprised if an MVL didn't affect your rating but an advisor will be able to provide you with better information.

*Remember, it's these companies jobs to provide accurate data on your credit history. Ultimately the decision to take you on rests with the client companies using that data. You may have to go back to the company who rejected you for further information.

Will be very p*ssed off if it does impact personal credit, though the orginal poster said her credit file was clean and didnt show it, though on a recent credit check I had it did ask specifically about MVL and CVL's. Also I know the banks get a file from the different credit agencies for business Credit details and this list liquidations so though its not on the personal credit file they may be linking the personal and business credit files on company director details. Surely the IP's though should of known this if this is true though ?

Zippy.mini, were you business accounts at the same bank you tried to get the mortgage and new premier acccount through, also was you partner who didnt have issues with credit check a director of you MVL'd company ?

[cojak]

Hi,
there are three major agencies. Experian, Equfax and Call Credit.

I had a very good rating according to Experian (999) and Equifax. However when I looked at call credits information via Noddle I have found they had different (incorrect) data held about a loan that I had previously terminated early in 2007 and settled the same month. They had turned the settlement into a DF that ran until 2009

I am in the process of getting that sorted out. But in the mean time their incorrect information has stopped me getting credit on several occasions and would have prevented me working in the finance industry so I am less than happy right now.

+1

Equifax and Experian are mature players in this market (indeed I my last permie job was with one of them many years ago) and so their data are pretty accurate. Call Credit is the new boy in town so I'm not surprised that their data aren't.

Contact all for your credit info, but I would also call either Equifax or Experian for (generic*) advice on your MVL.

Personally I would be surprised if an MVL didn't affect your rating but an advisor will be able to provide you with better information.

*Remember, it's these companies jobs to provide accurate data on your credit history. Ultimately the decision to take you on rests with the client companies using that data. You may have to go back to the company who rejected you for further information.

[ELBBUBKUNPS]

Thanks for the replies. At the moment I have no information from the Bank as to why. The AIP was done by a broker and he is in the process of trying to find out, but he tells me they are not obliged to disclose their reasons for the decision, which I find absurd!
Interesting re the difference check agencies - I will check them all now.
Thanks

I remeber from you previous posts you did MVL and then went contracting again did you setup a new ltd etc ? I know lenders etc tend to want to see a year plus / accounts on a ltd before lending.