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  • FIRST POST
    • Nottheo
    • By Nottheo 29th Nov 17, 3:10 AM
    • 2Posts
    • 0Thanks
    Nottheo
    Mortgage application affected by incorrect credit rating- advice needed
    • #1
    • 29th Nov 17, 3:10 AM
    Mortgage application affected by incorrect credit rating- advice needed 29th Nov 17 at 3:10 AM
    Hi all

    I need some advice please.

    Several weeks ago, I noticed that my British Gas bill seem to overlap with the date of a previous one. I phoned in to find out how this could be and was told that someone would look into it and come back to me. I was concerned that the bill would become overdue in the meantime and was reasssured that it would be frozen, until I had received a response. Over the course of the following 7 weeks, I needed to follow up repeatedly as I continued not to hear back, eventually logging a complaint at the lack of responsiveness. Each time, I was reassured that my case was with a complaint handler and that the invoice was definitely frozen despite emails from British Gas threatening to progress this to a debt collector.

    Eventually, to my horror I started to get letters from a debt collector- just as I had started to make a mortgage application. British Gas eventually apologised for the mess up from their side but confirmed to me that this matter would be incorrectly flagged on my credit rating. They promised to correct this issue and restore my credit rating that had previously been without a blemish. I chased this a couple of times until I finally got from them vernal confirmation that this had taken place (still hoping for written confirmation)- however, I returned to my quote to finally progress the application and found that the rate had gone up considerably, which would add almost £4.5k to the total interest over the fixed period. I am insenced that, on top of all the hassle caused by British Has incompetence, I would be penalised financially so significantly. I have tried to carry out another search on this site and cannot match the original quote received- the cheapest alternative provider would still be approximately £1.5k more expensive than the original quote.

    My main focus now is:
    1- secure a mortgage ASAP to secure the house purchase
    2- Pursue a complaint with British Gas (or legal action if relevant?) to compensate for the extra charges caused directly by their negligence

    Could I get advice from this forum please on how you would proceed? Given the need to move really quickly so as not to lose the sale, should I go back to the drawing board and try to find another bank? Or would you continue with the application already started and sue British Gas for the difference? Is this something the regulator is likely to get involved in?

    Would really appreciate any advice as Iím finding the whole thing extremely stressful!!!!

    Thanks
Page 1
    • RedFraggle
    • By RedFraggle 29th Nov 17, 8:06 AM
    • 534 Posts
    • 1,232 Thanks
    RedFraggle
    • #2
    • 29th Nov 17, 8:06 AM
    • #2
    • 29th Nov 17, 8:06 AM
    I think you have no hope unless you applied for the mortgage and it was refused because of the impact to your credit score caused by BG's error.
    At face value you chose not to apply until after you had sorted it out.
    Had you submitted the application and been refused then clarification of the error on your credit report could have led to the lender reconsidering and approving you and you would likely have got the original mortgage product.
    Officially in a clique of idiots
    • Nottheo
    • By Nottheo 29th Nov 17, 8:32 AM
    • 2 Posts
    • 0 Thanks
    Nottheo
    • #3
    • 29th Nov 17, 8:32 AM
    • #3
    • 29th Nov 17, 8:32 AM
    The problem is I had no idea what would be the worse evil- to risk rejection and possibly cause further delays to my application or to wait for confirmation from BG. I even asked the bank what was better and they said they couldn’t advise. Surely, I was put in a situation to have to take a gamble on this because of BG negligence- not made any easier by the fact that I am not experienced in this area. There was no single obviously right option.

    I know I cannot demand the same rate from the bank but surely I should be able to hold BG to account. Isn’t that the definition of tort?
    • RedFraggle
    • By RedFraggle 29th Nov 17, 1:33 PM
    • 534 Posts
    • 1,232 Thanks
    RedFraggle
    • #4
    • 29th Nov 17, 1:33 PM
    • #4
    • 29th Nov 17, 1:33 PM
    You can't hold them to account for a decision you made.
    You have more chance of holding the tories to account for the mess that is Brexit and the fact that interest rates are going up.

    You cannot demonstrate a financial loss based on a mortgage product you didn't actually apply for.
    Officially in a clique of idiots
    • fewcloudy
    • By fewcloudy 29th Nov 17, 2:33 PM
    • 172 Posts
    • 84 Thanks
    fewcloudy
    • #5
    • 29th Nov 17, 2:33 PM
    • #5
    • 29th Nov 17, 2:33 PM
    I think the type of advice you need is legal!

    I disagree with previous poster. A mistake by BG, and their failure to correct it despite numerous reminders, have left you financially worse off. I would be speaking to BG (who have apologised) and also a solicitor to find out my options if any.

    As to your next step re. obtaining a mortgage in a hurry, I would certainly be using a mortgage broker to get you through this and make you aware of all your mortgage options quicker than you could do so by yourself. If you are lucky some might come along here soon to offer some advice.

    fc
    Last edited by fewcloudy; 29-11-2017 at 2:35 PM. Reason: spelling
    Feb 2008, 20year tracker with Sprogget and Sylvester, 0.5% + base for 2 years, then 0.99% + base for life of mortgage. Kudos to my mortgage broker...
    • RedFraggle
    • By RedFraggle 29th Nov 17, 9:15 PM
    • 534 Posts
    • 1,232 Thanks
    RedFraggle
    • #6
    • 29th Nov 17, 9:15 PM
    • #6
    • 29th Nov 17, 9:15 PM
    Utter rubbish IMO but if the OP would like to throw some money away seeking legal advice that's their choice.
    There has been no financial loss because nothing was applied for. Compensation is only applicable where financial loss can be demonstrated which in this case it cannot.
    Officially in a clique of idiots
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