Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

sandralovescats

jillie1974 wrote:

Hi Mike
do you know if CCCS will let you take a month off not paying, husband has been off sick from work and wont get paid as not there long enough to qualify for sick pay?

I don't know the answer to the CCCS question but...... I was told the other day that statutory sick pay is due from the first day that you work for a company. Might be worth checking with the DWP perhaps?

Anniek1969

HI Mike,

I was wondering if you could help me with a mortgage question. We got into a financial mess about 6 years ago and we ended up with most of our debt passed on to DCA's. We have been paying reduced payments to these for the last few years on time and have never missed a payment.

Our mortgage is with the A&L and has always been paid on time with the exception of 3 missed payment over 2 years ago which was repayed monthly to them. My question is that we are on an interest only mortgage and would like to change to a repayment mortgage. We currently have 14 years left on our mortgage but may have to increase the term to change to a repayment. Will they do a credit check on us? And if these defaults are still on our file will they refuse us?

I'm a bit worried as we are still on reduced payments with several lenders although we have had other credit since our original defaults and pay every one on time every month.

I should add that we don't want to change lender we just want to change mortgage type.

Hope you can help.

mastasimit

Recently i been trying to obtain a credit card (to build credit) but have had
no luck, not even with vanquis. I am 21, live my with parents and have recently started to work again after a 2 year gap. I have had a halifax cash account since about 2000 which i used to pay in my work salary though i have made a few late direct debits/standing orders payments before (not sure if ths affects credit rating). I have another basic bank account which has been kept well with steady income coming in and i have been considering using this as my main one now, would it make a difference?

Though i do think the main reason i have been rejected for credit is most likely because i have outstanding balances. I've obtained a credit report a few years ago which showed 1 default from tmobile (£239) from when i was about 16. Though since the last report i got abit more into debt; 3Gmobile (£700) and another phone company called toucan (£75) which i am in two minds about paying. I also owe the court £500 for a car fine of some sort but this will not affect my credit score will it?

I think i may have maybe one more outstanding but not too sure though i am in the process of obtaining another credit report from all 3 agencies but they are all having difficulty verifying my address. Could this possibly because i am not on the electrol roll? and maybe this is part the reason i cant get a credit card either?

Since i'm not sure if the 3G & Toucan one shave been defaulted, i've only been in contact with tmobile about paying off the outstanding amount. I know it take 6years for they default to drop off after payment but tmobile said they would remove the default. Does this mean they will mark it as satified or remove it completely?

One last thing. The toucan situationand why i dont want to pay. I had a BT landline but on BT pay as u go plan where you had to put credit on the phone to make calls. So i signed up with toucan for a landline phone (line & calls). I received a letter from BT saying 'sorry you leaving' and then started to receive calls with toucan though they had not taken over the actual line yet just the calls. I phoned them asking when this would happen and they didnt know! But if they dont even know, whos knows then. Anyway i cancelled them and went back to BT(received a letter from BT saying welcome back and one from toucan saying sorry your leaving). I then signed up with talktalk (letter from bt sayin sorry your leaving) within about 2weeks obtained calls but in the mean time i was receiving bills from toucan after they already confirmed cancelling with them about 2months back. Cut a long story short my calls were cut and it was done by toucan, i phoned them they said they still owed the line and the calls and because i had not paid my bill they suspending my account. But i cancelled toucan 2months back by now and they didnt own the line in the first place hence why i left. They said BT didnt take back the line from the (even thought they didnt own it in the first place anyway) so they kept onto it. But ok say this is true, why did they have control over my calls? anywya to cut the story short again, i owe them money for their mistake, they are more than likely put a default on against my name but i'm not sure if to fight it or just pay it.


sorry if this is confusing.....advice would be much appreciated

Thank you...MASTA SIMIT

Mike_St_Helens

Hiya guys, Im dead sorry if i havent kept up with this thread recently.

Im off out now, but will go throyugh it later and answer any unanswerd issues.

Mike

mastasimit

I think i know what i'm going to do now

get hold of all 3 credit files from each agency,

pay off my debts by xmas,

register on the electrol roll,

start again with tmobile n pay the contract for the year and hopefully repair my credit slowly

Gemmzie

Ah found it

Apparently Orange are harsh credit markers - how much effect is a knock back going to take on an average/okay credit score?

50_percent

Hi Mike,
I defaulted on an overdraft March of this year - I didn't realise that my actions meant that I would default on the overdraft and did not realise I had defaulted until I was refused a mortgage for this reason. The bank had contacted me at my old address - even though they were sending me statements at my current address - and so I only found out in September. I paid the debt within 3 days of finding out about it back in mid-sept, and went to apply for a mortgage last Saturday (11/11) - the debt is still coming up as unpaid. I have a letter confirming the debt has been paid, and the mortgage advisor has sent a copy of this to Head Office for a final decision. So my two questions are:
(1) How do I get the bank/credit people to update my record and show that I have paid the debt?
(2) How likely do you think it will be that I will get the mortgage?

Mike_St_Helens

Gemmzie wrote:

Ah found it

Apparently Orange are harsh credit markers - how much effect is a knock back going to take on an average/okay credit score?

Hiya Gem.. Lenders wont know of any decision, decline approve etc etc.. One search wont make that much of a dent either... Unless you have loads !

Mike_St_Helens

50_percent wrote:

Hi Mike,
I defaulted on an overdraft March of this year - I didn't realise that my actions meant that I would default on the overdraft and did not realise I had defaulted until I was refused a mortgage for this reason. The bank had contacted me at my old address - even though they were sending me statements at my current address - and so I only found out in September. I paid the debt within 3 days of finding out about it, and went to apply for a mortgage on Saturday - the debt is still coming up as unpaid. I have a letter confirming the debt has been paid, and the mortgage advisor has sent a copy of this to Head Office for a final decision. So my two questions are:
(1) How do I get the bank/credit people to update my record and show that I have paid the debt?
(2) How likely do you think it will be that I will get the mortgage?

1- You should write them a VERY starn letter. Also contact the credit reference agencies.. add what is called a Notice of Correction. This is a block of text that lenders must read that is attached to the incident (the Default in your case) Explain the issue and circumstances... This will give them the reasons..

2- I have no iddea mate, some lenders will be fine, others wount touch you with a barge pole. Really depends on their policy.

Mike_St_Helens

Anniek1969 wrote:

HI Mike,

I was wondering if you could help me with a mortgage question. We got into a financial mess about 6 years ago and we ended up with most of our debt passed on to DCA's. We have been paying reduced payments to these for the last few years on time and have never missed a payment.

Our mortgage is with the A&L and has always been paid on time with the exception of 3 missed payment over 2 years ago which was repayed monthly to them. My question is that we are on an interest only mortgage and would like to change to a repayment mortgage. We currently have 14 years left on our mortgage but may have to increase the term to change to a repayment. Will they do a credit check on us? And if these defaults are still on our file will they refuse us?

I'm a bit worried as we are still on reduced payments with several lenders although we have had other credit since our original defaults and pay every one on time every month.

I should add that we don't want to change lender we just want to change mortgage type.

Hope you can help.

Hiya Annie.. I have just done exactly the same. The lender should be happy to do this without any checks. Call them and ask. Dont mention any other lender unless they ask though.

They may charge you though, mine was £150 but you can add this to the balance.