Credit report shock, what to do now?

ArielK

Looking for some advice

My husband and I are looking to move as we had a baby last year and we've outgrown my small one-bed flat. As my husband embarked on an IVA in 2004, which he finished a year ago, we knew we couldn't do anything about it till his credit record was clean andthe CCJ off. It will be clean as of next week, with the exception of one default that was mis-registered on the report and should also have elapsed. He is in the process of getting that wiped, too, and as such it's not my main concern.

What's stressing me out now is my own credit report. My score is high (995) and I'm rated excellent, however it seems I made a late payment to a credit card this April (I can barely believe it, it was for £5, though I accept I simply forgot about paying as I don't use credit cards much and as we got married the month before I thought I had already settled that one, it wasn't a mistake on the part of the credit card company) and now I can't get the mortgage I wanted. I had approached my current lender, who I have been with for 7 years, and all seemed fine, papers sent out, etc, and then this popped up (after the first credit check, which we passed). We were all set to increase my portable mortgage by £50k and keep the extremely low interest rate, change it to a joint mortgage (necessary because we need both incomes) and now we're not even back to square one but worse because I thought my husband was the one one with the dodgy credit but it seems I am.

Just don't know what to do. I rang the bank I have my current account with (a different one) for advice and they said I could ask for a note to be put on my credit file. Would that make a difference? I don't know what else to do. Credit card company point blank refused to take the default off my report, despite me being a long-standing customer who never before or since was late with a payment.

Does the credit rating mean nothing? We presumed because my score was fine it was all ok from my side. It's not like we are surprised to hit against barriers per se, because of the IVA, but this is something I never expected.

TIA

GMS

ArielK wrote: »

Looking for some advice

My husband and I are looking to move as we had a baby last year and we've outgrown my small one-bed flat. As my husband embarked on an IVA in 2004, which he finished a year ago, we knew we couldn't do anything about it till his credit record was clean andthe CCJ off. It will be clean as of next week, with the exception of one default that was mis-registered on the report and should also have elapsed. He is in the process of getting that wiped, too, and as such it's not my main concern.

What's stressing me out now is my own credit report. My score is high (995) and I'm rated excellent, however it seems I made a late payment to a credit card this April (I can barely believe it, it was for £5, though I accept I simply forgot about paying as I don't use credit cards much and as we got married the month before I thought I had already settled that one, it wasn't a mistake on the part of the credit card company) and now I can't get the mortgage I wanted. I had approached my current lender, who I have been with for 7 years, and all seemed fine, papers sent out, etc, and then this popped up (after the first credit check, which we passed). We were all set to increase my portable mortgage by £50k and keep the extremely low interest rate, and now we're not even back to square one but worse because I thought my husband was the one one with the dodgy credit but it seems I am.

Just don't know what to do. I rang the bank I have my current account with (a different one) for advice and they said I could ask for a note to be put on my credit file. Would that make a difference? I don't know what else to do. Credit card company point blank refused to take the default off my report, despite me being a long-standing customer who never before or since was late with a payment.

Does the credit rating mean nothing? We presumed because my score was fine it was all ok from my side. It's not like we are surprised to hit against barriers per se, because of the IVA, but this is something I never expected.

TIA

The credit score is irrelevant. If the credit agency lent the money it may be important, but unfortunately they dont. Lenders have their own credit scoring systems.

As for the credit card payment why would the company take the late payment off the record? It was late.

There is no right to obtain a mortgage unfortunately. An IVA showing on the credit report will be having much more of an effect than a late payment on a credit card. You also mention a CCJ which is showing. More likely to be down to these than anything else.

Speak to a 'Whole of Market' broker. They will be able to see what can be done for you

ArielK

Thanks.

The IVA and the CCJ do not show on the credit report. We would not attempt to get a mortgage with those hanging around. There are two outstanding defaults, which will have reached their 6 years and elapsed as of next week.

Is it likely to be impossible to get a high-street mortgage with my single default?

Thrugelmir

You are asking for an increase of £50k above the mortgage you already have, and now have a dependent.

These factors will have more of an impact on your ability to borrow based on affordability, than your perception of your own credit rating.

GMS

Do you have a default or a missed payment? 2 totally different things.

If you have defaults due to drop off next week why did you apply prior to this?

Without knowing your circumstances it is impossible to say whether you will get a high street mortgage or not.

Speak to a broker. Do not keep applying to lenders in the hope one will do it. This will harm your credit profile even more.

ArielK

Thanks. If we had been rejected on the affordability basis, I'd understand. However, it was all agreed as affordable. We would be putting down a 35% deposit.

ArielK

GMS wrote: »

Do you have a default or a missed payment? 2 totally different things.

If you have defaults due to drop off next week why did you apply prior to this?

Without knowing your circumstances it is impossible to say whether you will get a high street mortgage or not.

Speak to a broker. Do not keep applying to lenders in the hope one will do it. This will harm your credit profile even more.

We have not applied to lenders, as I understand about this affecting our credit profiles. I made an inquiry to my current lender prior to making an application.

I have one late payment. My husband has two defaults due to come off. I discussed this with my mortgage lender and was told to call when his report is clear, as it will be next week. I am not worried about those, as this time next week his report will be clear. Mine will not be.

Thanks for your advice.

GMS

Deposit and affordability will be irrelevant if you are failing credit scoring.

ArielK

Okay, thank you, good to know.

GMS

You really would benefit from speaking to a broker.

Good luck

josievg

All the mortgage app forms I saw had the question 'have you ever been bankrupt or had an iva'. The answer to this will still be yes for your husband even when the iva has dropped off his credit file. This may worry lenders even though his credit file will be 'clean'.