Sign in to follow this  
Followers 0
chipandpin

advice needed - mortgage refused

11 posts in this topic

Some time ago I had a mobile phone stolen and a bill was run up in the region of £1000. My credit limit on the account was £550. The grounds for my dispute are that i was assigned a credit limit and the mobile phone operator knew that i had reached it (or should i say, the feckers who stole my phone had reached it) as they tried to contact me (on the stolen phone) to advise there were suspicious calls being made and that I was nearing my credit limit. Instead of freezing the line, they allowed it to continue into almost £1000. Im not legally trained, but i suspect they may have breached the consumer credit act by lending irresponsibly! I have since been in communication with the collection agency acting for the mobile phone company regarding this, and have made an offer of £300 in full and final settlement - after several months of communication with them they have rejected this offer and continue to demand the full amount.

Anyway, I applied for a re-mortgage to pay the ex wife out and surprise surprise, it was refused because this was shown as a default on my credit file! It seems i was worng in thinking that if you dispute an item, it continues to be reflected as an arrear and ultimately as a default on your credit file, despite the last 4 letters i sent (by registered post) requesting a response from them to my earlier offer.

Im in a position now where i want rid of this default, and am willing to pay the full amount and swallow my pride to have a clear credit file. Does anyone have any advise or experience.

Share this post


Link to post
Share on other sites

Going by what i have experienced, even if you pay off the debt your credit rating will still be affected.

The only thing i can suggest is to try different companies for the remortgage. Which company has rejected you?

I have been rejected by Abbey even though i dont have a bad rating whereas other mortgage lenders were happy to lend me monies.

Cheltenham and Gloucester are the chaps i have gone with in the end. I know I haven't helped you much but deffo give other lenders a ring to see what happens.

Should all this come to nothing you always have the option to get your credit history (with a small fee) to see exactly what is going on with it.

Good luck either way matey... smile.gif

Share this post


Link to post
Share on other sites

Mate I don't think it will clear your credit file. It might be marked as paid around 4-6 weeks after you've paid it but it will still show as a default on your credit file.

The best thing to do is speak to the lender you're trying to remortgage with and go through the appeals process which will give you chance to explain the situation and that it is not your fault.

Share this post


Link to post
Share on other sites

Not sure if your using broker but you really should if not would save you a lot of time and money of would of avoided this problem.

Share this post


Link to post
Share on other sites

When I got my mortgage I was in a similar sit but I had 6 defaults!

They are all cleared - presented the letters to broker who then relayed the evidence to the mortgage co. All went through ok in the end.

Worth looking at a broker if possible though.

Share this post


Link to post
Share on other sites

cheers guys

ive used a broker and he has a remortgage arranged for me but its with an adverse credit lender and is expensive in comparison with my existing lender (alliance and leicester). I need a mortgage that has no early settlement charges or is portable, in order to pay the wife out in the short term, but in the medium term, i.e 6 months time, im looking to buy something with the girlfrend so will need a new mortgage. Adverse lenders tend to have minimum 2 year tie ins with about 6% early re-payment charges, which i want to avoid.

Ive taken the advice of shark and spoken to Alliance and Leicester (who refused my original application) - they said to fax through the letter ive received from Experian stating that they have contacted the creditor as i believe the info on my credit file to be incorrect or inaccurate, and they have said they will pass it to the underwritters for review, so ive got my fingers crossed.

Share this post


Link to post
Share on other sites

My bank made a mistake with some of my standing order payments a few weeks ago and I suddenly found myself in a similar position and graded as sub-prime.

To fix it, I got hold of my credit report from Equifax - it costs about £12 online or £2 by post. Once I'd worked out where the problem was I asked my bank to write to Equifax and Experion to explain the problem and it was resolved within two weeks.

There was no way I was paying sub-prime rates! openfire.gif

Share this post


Link to post
Share on other sites

Dont go that route certainly dont need to just need to go through the process as dicussed in previous threads. I dont mean to be personal but your broker does not sound to hot unless there is something your not telling us.

Share this post


Link to post
Share on other sites

These mortgage lenders can be fickle you know, even the sub-prime ones tongue.gif

Share this post


Link to post
Share on other sites

I used a really good mortgage broker who i am willing to reccomend to you if you wish.

The one i have gone for with C&G (Cheltenham & Gloucester), although they have a repayment fee within the first 3 years, if you get another property i have been advised that they can transfer the mortgage over for you.

Basically they dont want to loose customers so this is also an option.

Share this post


Link to post
Share on other sites

You say that you have disputed it with the phone company but have you registered a complaint with Experian or Equifax? If not, you need to lodge a "Notice of Correction" with both organisations saying that you sipute the accuracy of the data concerning that account. If your credit rating is A1 apart from this one account then things should be a lot better. You need to get through to the credit compliance department of the phone company and get a name there. Direct all your correspondence to them and then come to an arrangement regarding payment of the debt. If you just roll over and pay the amount they claim the default will remain on your credit file marked as "satisfied" for the next six years and will bring down your credit score with every lender (well the ones that use computer underwriting anyway - ones that use discretionary methods will probably disregard it if it is a one off).

A&L are not the best when it comes to flexibility of underwriting. There are plenty of other mainstream lenders that you would be able to get a good rate with. If you want any other info send me a pm. 169144-ok.gif

EDIT: I should read things properly before posting smashfreakB.gif I see you have contacted Experian. If you still have problems with A&L then let me know.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0