Panicking about mortgage approval

tb1105

Husband and I are still waiting to hear back from Halifax.
Applied for £140,000 mortgage, got initial promise and had to give bank statements/payslips etc.,

Checked my credit report and amended some info (orange had that I missed 3 payments which was incorrect and got changed). Husband has very good credit history and rating.

I am worried because I have been a student for 4 years. Started my job in September as a teacher. We are both in good, stable careers. We have no outstanding debts. We currently have £8k saved and add £1,400 a month to this between us. My credit score last month was top of the 'fair' category at 859, it has dropped this month to 684 because of my Barclaycard missed payment (see below)!

However - In September, I had a large shop which took me into my overdraft, had money in my online savings to transfer over but on the same day someone cashed a cheque in that bounced (it was given in July and I completely forgot about it!) I transferred money that night that took me £300 in credit but obviously I got charged £30 'reservation fee'.

In December, I had £55 on my Barclaycard. Didn't receive my paper statement and thought nothing until I got a late payment reminder. Called them to explain and they said I could pay over the phone with my card number and passcode, which I did immediately, but obviously it has now shown up on my report as 1 missed payment. I have added a notice of correction to my report explaining the undelivered statment and the fact I have no missed payments since I opened the account in 2006 and I have sent a letter to Barclaycard explaining and asking them to remove it from my report. Worth a try.

I am gutted, is this enough/likely for Halifax to turn us down for a mortgage? Thanks in advance x

mclaren32

If you have provided pay slips etc it suggests to me that you have passed the credit scoring stage and that they are now confirming information before instructing a valuation.

To be honest I would just ring them up and ask, they should be able to confirm that status of your application and whether you have passed the credit score stage.

Fire_Fox

Halifax won't use the same credit scoring system as the credit reference agency, so the reduction is a red herring. You should ideally check your credit file at all three reference agencies, as they hold different information. In future pay at least the minimum on your credit card by direct debit!

tb1105

thankyou! just found out we passed with flying colours, they must have checked it all last month. phew!! I am cancelling my credit card! I only put £60 - £200 fuel a month on it (since 2006) and pay it all off every month (except Dec, doh!!) to build up my credit score as have been a student.

tb1105

p.s - mclaren, well done on your saving, thats amazing!!