More Help For First Time Buyer Loan Rejections
It is difficult enough for first time buyers to get themselves into the housing and homeowner loan market at the moment. Much tighter lending criteria and lower loan to values has meant that many would be first time buyers are being rejected for the loan they require, without being given any reason as to why this has been the case.
The Halifax has now launched a new service for first time buyers who have been rejected for a loan, by joining forces with the credit reference agency Experian, in order to help first time buyers have a better knowledge and understanding of their own credit score.
The Halifax CreditExpert has been introduced as part of the lender’s first time buyer pledge, which tries to offer as much help and support to first time buyers as possible, in order to help them get the home owner loan they require.
Currently, if someone is rejected for a loan of any kind, the lender is unable to give the potential borrower a reason for why the loan was rejected.
The new system will allow those first time buyers who have been rejected for a home owner loan to find out exactly what it is that has stopped their application and give them the opportunity to repair their credit score, whether it is a missed credit card payment, or previous loan arrears, for example.
Steven Noakes of the Halifax said “Although eight out of ten borrowers are successful in getting a loan, we don’t want the unsuccessful few to feel like they’ve hit a brick wall if they’re turned down. However, lenders are limited in what we can say about someone’s credit profile and we know that hasn’t been particularly helpful.”
“By developing this new service with Credit Expert, it means that we can really help first time buyers understand what they need to do in order to come back to us and be successful in their application.”
