Need Urgent Advice on Mortgage App Declined

dilemma10

Hi all,

Yes you may call me foolish but I've gotten myself into a right mess.
I put in an application for a new build under HomeBuy Direct after an independent broker confirmed I had been accepted in principle with Halifax.

Shortly after this I received my credit report and saw an Orange default on there which I told my adviser about but he informed me everything was good and I would receive an offer from Halifax in the post shortly after.

I then proceeded with a full reservation so paid £250.

Fast forward getting the grant approved by East Midlands Housing for £30k towards the £100k property and a full application and Halifax came back and REJECTED my full application.

My credit report is showing up a default for £150 under Orange which was a miscommunication (I thought I had upgraded my contract and actually have an Orange contract now so they earn thousands out of me). When I went to clear the debt Scotcall never cashed my cheques and never communicated with me.

My mortgage adviser is advising an appeal - but is this going to work? I have been trying all day to pay off this bloody debt but Scotcall has now passed me on to another debt recovery service. I've tried offering money to Orange - nothing works. It's the only flaw on my credit report.

My adviser also tried Natwest and they too failed me!!!!!!!!!

What do I do from here? I have all of my money in this - because my mortgage adviser assured me I'd get an offer etc. I've been led down the garden path. If I get through and clear my debt, how soon could I remove a default? Would this give me a chance?

Regards

beecher2

The default will stay on your credit file for 6 years. No-one on here can tell you if your appeal will work or not.

Didn't you say on your other thread that you'd get your reservation fee back if you couldn't get a mortgage? What other money have you shelled out?

holly_hobby

The default will be marked as satisfied, make sure you also get a letter of satisfaction, and get your broker to explain with copies of the supporting evidence as to why the default happened in the first place.

If this is the only blip & the reasoning for it is plausible - I think its a bit harsh to be declined - but since the blow up in the FS sector - lenders are skittish especially the higher up the LTV tree you go.

Get your broker to speak to his local lender rep & see if he can get the rep to have a word with the underwriters to try and get it through, or get him to speak to the UW directly if possible.

Hope this helps

Holly

dilemma10

beecher2 wrote: »

The default will stay on your credit file for 6 years. No-one on here can tell you if your appeal will work or not.

Didn't you say on your other thread that you'd get your reservation fee back if you couldn't get a mortgage? What other money have you shelled out?

Hello yes that was until on Friday the builder urged me to make a full reservation! So now I can only get £125 back but oh well.

I had a solicitor briefed but held off from paying survey fees etc until I got the go ahead from Halifax so I will only lose £125. Gahs.