Undeclared Information on Mortgage Application - Advice Needed!!

pbkac

Hi all, 1st post so please be gentle.

Having a bit of an issue with a mortgage application that I'd like some advice/thoughts on.
We applied via a whole of market broker for a 2yr fixed deal with the YBS. All going well until it was rejected on Friday at 5:30 because "information on my credit file had not been declared".

It turns out the information I've not declared is a previous mortgage I had with my ex. We agreed between us that she took a mortgage out in her own name and the old house is now 100% in her own name. I have a letter from a solicitor saying as much (that my name is no longer on the deeds etc). This was completed at the beginning of August. .

I've checked my credit file via credit expert and indeed, the mortgage is still showing. I've been in touch with the previous lender, HSBC, and they will update etc. However, I'm really getting pushed for time as I have an offer in on the house I'd like to buy.

The broker has suggested that we need to re-submit the application, but include the fact that I have a mortgage so it matches my credit file. This does not seem right to me by any stretch. However, I'm not sure if this is a common occurrence? Personally, I'd sooner get my letter from the solicitor faxed over to YBS underwriter so they can take a look, however, our broker does not seem to think this is possible/won't make a difference.

I'm half tempted to sack this off and go see HSBC on Monday (who I had the previous mortgage with), and apply there...

Any advice??

Senior_Paper_Monitor

Sorry, but I don't agree with your broker - simple case of an appeal and demonstrate that the information used for the initial decision was incorrect through no fault of your own.

beecher2

I can't see the solicitor's letter making any difference either because it is still showing on your credit file. Can't understand why you or your broker didn't check your credit file before applying for a mortgage, but that's water under the bridge now. Also can't see how you can re-apply your application and include the mortgage as that will affect affordability.

Think your only option is to wait until it is not showing on your file and re-apply somewhere but I'm sure someone will be along soon who knows what options you have. Why the 2 year fix?

nissan25

Just a few thoughts:

As this was only done at start of august (previous mortgage) your credit file may/will not have been updated to reflect this when YBS ran the check - its only the 21st today and they would have ran the check days / week ago im sure theres paperwork/systems etc to processed/updated by credit agencies. You should have waited and been advised to wait if you declared this to your broker for another few weeks or obtained a copy of your report prior to applying.

I would be concerned with making a new application in such a short space of time and thought your broker would know this. I would go to YBS direct with the evidence as this may clear it.

good luck

dwsjarcmcd

YBS do not accept mortgages from brokers, they don't even allow them to submit applications. Using your broker will simply slow things down and I would suggest you go direct to them.

betmunch

Are you sure this mortgage was paid and not in any arrears?

It will still be showing on your file until August anyway so will have a bearing on any decision.

I cant speak for YBS, but in general if something like this shows up then it over-rules the info you have given and a decision is made based on the new info. For your application to be turned down without them asking about the commitment indicates to me that there could be missed payments on that mortgage.

If theres not credit issues with this mortgage then you should just be able to tell them that it will not be your commitment by the time of completion on your new mortgage.

However, like I said, I dont know YBS, you should check with them really

pbkac

Hi all, many thanks for the useful replies. Food for thought indeed.

The YBS mortage is via Accord Mortgages?? It's a broker only deal we've been told, I have no contact details for Accord other than through our broker.

There were no arrears on the mortgage and for the 5 years I had it, there was no missed payments or anything like that. I doubt HSBC would have allowed me to "take my name off it" if this was the case.

I've emailed the broker this morning and sent the documentation through, I doubt it'll have little effect. Now feeling really miffed!

Many thanks guys

betmunch

If the old HSBC mortgage was well maintained and you came off it just a few weeks ago then really all you should need to do is explain this fact and everything should be back on then.

In my opinion, the underwriter should have called up the broker to ask about the old mortgage rather than just chucking the case out.

magpiecottage

betmunch wrote: »

in general if something like this shows up then it over-rules the info you have given and a decision is made based on the new info

But the Data Protection Act means that you can insist that a human, rather than a computer, makes that decision.

FraudBuster

It turns out the information I've not declared is a previous mortgage I had with my ex.

What was the actual question on the application form?

pbkac

FraudBuster, good question. I was asked if I had any existing mortages to which I replied "No", I then went on to explain the situation as per my first post and suggested I send the documentation over at that point to prove my case.

Interesting point RE: the DPA, I'll look into that, as is typical for a Saturday, everyone is closed so it looks like I'll try to tackle this first thing Monday morning.