chances of underwriters approving mortgage application after bank fault?

tanyafelts

My partner and I have been jumping through hurdles and hitting brick walls trying to amend a fault that has shown up on my credit record due to my bank not canceling direct debit and resulting to my account showing to go over my agreed overdraft limit. The bank have admitted fault and removed the late payment mark and not charged me for it, however the only current 4 week period that Equifax will accept to show on my credit report is the time it went over the limit last month and they will not amend the figures no matter how much the bank has tried asking.

My local branch manager has written a official letter to our mortgage advisor we are going through admitting there was a fault for our mortgage advisor to forward to the underwriters. However I cant help but worry we will still be turned down as our advisor doesn't give us much hope they will approve it as he explained that they rarely do approve them even if we have proof of the fault not being ours.

Has anyone else experienced this and how did it go, was it refused or did they accept under certain conditions?

Mrs_Bumble

If your bank has accepted liability then they need to correct the mistake with Equifax, they are the ones that can do this, they don't always like to as they have to pay for corrections.

Who is your application in with?

Would have thought that if you have a letter explaining that it was a bank error that it wouldn't be too much of an issue.

However if your bank statement show continually up to your limit on an overdraft and it is a high loan to value mortgage that might put a different slant on it for an underwriter.

What is your scenario? Loan to value, deposit, any other credit history issues etc.

tanyafelts

Thank you for your reply, the bank have been asking Equifax to amend this for over a week, but they state they cannot update it to a closer date that 4 weeks ago which is when it went overdrawn due to the fault. When the bank asked Equifax removed the attention mark immediatly but refuse to amend the balance figure.

The mortgage amount is £99,000 no deposit and it has to be with Halifax as its a Barretts Homes 75% Scheme and only Halifax do these at the moment. The monthly mortgage payment inc interest works out at just £13 more per month than what we have paid monthly on our rent in the past 3 yrs without errors.

I have only shown close to my limit in the last 2 months hence why it went over with the direct debits coming out like they shouldn't have, and I am currently paying the account overdraft off before the Graduate 0% interest ends next July.

Previously my partner and I have had no other faults, however equifax have out of date incorrect info on an old current account I had which cannot be amended as the account is now closed, but equifax show it as open with a balance, late payment marks and a gain status last year??? when the bank are confused at this as they have no such marks on their system in my history and now providing confirmation of all of this rubbish in the post.
What I don't get is this account shows perfectly ok on experian and call credit, so why are equifax got all this on my report with them?

I am mainly worried at how our advisor said the underwriters have a tighter reign and he has not experienced many mortgages being accepted that route.

Mrs_Bumble

The bank decide who they report credit reference information to, which is why you see a difference.

Have you spoken to Equifax to see what is going on? If you haven't I would.

In relation to the other bank account that Equifax are showing as open and you think it is closed, you should check this with the bank, as the information is getting reported to Equifax would indicate to me that the account hasn't been closed and this could be an error but you should check this, especially as there appears to be charges going onto it (gain status).

Speak to Equifax.

sgh1976

Not sure if it will make any difference but Halifax didn't check Equifax on my application (2 weeks ago). I think they use Experian.

We applied to RBS (who said no)and that showed on my Equifax search history but never anything from the Halifax (who said yes) when they did their searches

TheMiner

I had a similar problem - one missed payment from 18 months ago was showing as a missed payment (due to the incorrect setting up of a direct debit) every month on my credit report (18 missed payments!!). I argued with my bank that none of it was my fault and that only one payment was missed actually - and that had they told me I would have cleared it straight away

Unfortuately it took time to clear the credit report, but by going through the same bank for a mortgage, I was able to get approved despite them still referring me to their underwriter (the rest of my report was good).

tanyafelts

Thanks for the replies, I did contact equifax who confimed that they could not update the records to current date as bank asked.
We will see what happens, but don't hold high hopes because of what mortgage advisor said

sgh1976

I recently got my mortgage offer while I still had a CCJ on my account.

I had never run a credit check before and did one during the whole application process and noticed the CCJ. Thing was it wasn't mine. A bit of digging showed the next people in the address used my name for certain things and left leaving an account open with £205 debt in.
I contacted Equifax and the Court in question and whilst they were dealing with it I got the mortgage offer, then not long after I got a message to say the CCJ had been removed from my file.

Mrs_Bumble

Have you queried the other account? as to be honest I would be just as worried that this hasn't actually been closed and is incurring costs as it is being updated on Equifax.

Surely the bank should have been requesting a correction because of their error the DD went out and shouldn't have and thus made you go overdrawn, my understanding was that the bank had admitted the fault and error and so should be asking for a correction? Did they recall the DD and put your account right?

tanyafelts

Thanks, Yes the Bank did ask Equifax for a correction, in fact many people did including ones who have authorized signatures to have this updated as well as the bank manager. However they were told by equifax the same equifax told me, that they can only update it to show the last statement period which is what it was currently showing and no sooner. The stupid thing is our mortgage advisor said that if this balance was updated no matter if this overdrawn amount is show as history so long as it was showing on the report as currently not overdrawn when he was putting the application through he could approve it as it wasn't something in errors at the time of application.

We have provided proof in the form of Bank Managers letter admitting the error and 6 months copies of that account statements which show the charge was removed and the current account balance as being £30 under the limit as well as copies of our joint bank statements that show we pay the similar monthly amount in rent as it would be for the mortgage monthly payments highlighted by our mortgage advisor so it is clear to the underwriters we pay the same comfortably and on time.
I also wrote a letter saying that we have always been careful to pay everything on time if they check our bank accounts and this error was an error by the bank and once I was aware of it I contacted them to rectified it, and the bank have tried to rectify it.

Hopefully it all goes ok but until we know for sure I'm going to be a right bag of nerves as we were told if the underwriters refuse thats it.

If anyone has any more advice or similar stories please do let me know because it helps.

tanyafelts

The answer to this question is no chance if its with Halifax because apparently they cannot over ride their computer system's decision - welcome to the world run by computers!
So we are going to a bank that don't use Equifax!