Mortgage refused due to bank listed defaulter by mistake

rudra

Hi all,

I would be much thankful if some one could help me to get some advice in this regard.

I am a first time buyer, and I tried for get mortgage but it got refused because santander bank listed me as defaulter in 2008 with Alliance and Lancashire . Actually, I paid my money overdrawn back in 2009 but after the acquiring Alliance and Lancashire by Santander Bank, it still remained on my credit, I contacted everywhere and at last got a letter from Satander dank that there is no arrears which was only £ 300 , but still mortgage company refused my mortgage as it was on my credit report. I contacted credit Experian and they said it will take 2-3 weeks to get is remove form the list, as it will not removed totally but it will be written as satisfied after bank approved that the letter written is genuine. Santander said we have removed your name just recently but it will take 6-8 weeks to remove it since it has been listed to remove on 29th November 2010.

Am really confused whether to try another time to get mortgage or to sort it all out after it get all corrected on my credit report, as if I try some where else chances are there I get refusal and it will be on on credit and if I do not take chance then I might lose the house am getting at affordable price.

I would be really thankful if I get some genuine advice in this regards, as Santander and credit experian agencies have left me no where, for such a penny amount they have left my mortgage in disaster.

thanking you all

Rudra

betmunch

If you defaulted in 2008 and paid back the outstanding money in 2009 then its not listed as a default by mistake.

Your mortgage would have been refused on the grounds that you defaulted, the fact you paid it back the following year would have imporved the situation, but not to a point when the lender was prepared to accept you as they would rather give their money to someone who never defaulted in the first place.

I'm afraid that with a recent default on your file (settled or not) you are not a good risk for a mortgage lender these days

GMS

betmunch wrote: »

If you defaulted in 2008 and paid back the outstanding money in 2009 then its not listed as a default by mistake.

Your mortgage would have been refused on the grounds that you defaulted, the fact you paid it back the following year would have imporved the situation, but not to a point when the lender was prepared to accept you as they would rather give their money to someone who never defaulted in the first place.

I'm afraid that with a recent default on your file (settled or not) you are not a good risk for a mortgage lender these days

If the default is the only blemish on your credit file then there may be lenders for you.

When was the default?
How much for?
How much deposit do you have?
How much are you looking to buy for?

rudra

Thx Betmunch & GMS

Default was on Oct 2008 it was with Alliance and Licanshire for £ 614 in November 2009, (actual overdrawn was only £ 300) I opposed on compassionate ground and paid in £ 353 in March 2009. But they have not removed my name straight way and waited for some other amount ..... mean while it was acquired by Sandander and I never checked my credit status since then. Recently in December 2010 there was a deal on credit card so I applied and it was refused and then I came to know that the default amount is still pending. I contacted the Credit Experian and raised the situation but they said at that time that it will take 28 days, mean while I had an opportunity to buy a property and applied with C&G, it got refuse on the basis of above default even there was a notice of correction in my report. I immediately contacted offcom and they said to complain with santander, I turned back to santander and explain the situation , after two hours of maniac I finally got a letter that the amount was waived of in Nov 2010, but it will take 6-8 weeks to see on report as am no more listed as defaulter. I have recently passed this letter to C & G but there decision was firm, I have also passed the letter to credit experian,,,, but they said it will take 7 days as notice of correction and further 28 days to confirm with santander bank.

I have am established income of £ 30,000 per year and my wife part time income of £5000.

I have saving of 10 % and am looking for 81000, as property is a flat worth of 90,000.

Thankx for your kind reply.

betmunch

If Santander are going to removed the default from your records then you will be fine after it has all been processed.
If Santander feel the default was not registered in error then it will stay on the file.

It seems that you have paid less than the full ammount of the default due to compassionate grounds, which is one thing. but by paying it are you not agrgeeing that you were at fault to let it get ot this stage?

Your whole application with the C&G rests on what Santander do next.

With a 10% deposit you will need a crystal clear credit score, which currently you do not have.

I fear that Santander will conclude that you default was correctly registered and the best you can hope for is that it is updated to Settled, but it will still be there.

Good Luck