Adverse mortgage application/2 defaults being challenged

Rocket1971

IF ANYONE HAS ANY INPUT RE THIS POST WOULD BE VERY MUCH APPRECIATED MUST BE SOMEONE WHO HAS SOME ADVISE BEIT GOOD OR BAD

If you are reading this and can give me any good replies please do so as my brain is doing overtime and I will probably give myself a heart attack before the weekend is out!

My story is as follows:
In Jan 09 requested arrangement to pay on my credit cards, got agreements in place and managed payments plans effectively and still do with some coming off the arrangement and going back to normal terms, natwest and captial one both put defaults on my account even though I have it in writing along with a note of the dates and times I spoken to them which state they would not put a default on my account, 2 cards have been paid off.

In March this year my Mother died leaving her property to me valued at £300K with a mortgage of £45K on it.

I have a property also valued at £300K with a mortgage of £175K on it which I have had up for sale as well as to let as we want to move.

No interest to buy at present but couple wanting to let for minimum of 1 year which if this works out suits us.

In the mean time we have found a new property which we have made an offer on but due to us not selling our house in time will rent it out for £1050.00 per month as well as the inherited house renting for £1050.00 per month.

We applied to the halifax to have BTL mortgage on our property, a BTL on the inherited property with a FA of £114K to cover shortfall of new property as we would only quality for £277K mortgage, halifax turned us down due to my defaults (I have now raised this with credit expert as a dispute) as credit score shows 900 with marker as good although from reading on here that means absolutely nothing.

My mortgage broker has now applied to a "master broker" who has in turn put a application to the underwriters for approval.

Has anyone out there been in a similar situation and had a mortgage approved if there have similar credit history to mine, it will be a 1 year fixed deal albeit at a slightly higher the normal rate but after the year there is no ERC and we can then port again to a more attractive rate and hopefully our home will have sold so we will have a min of £100K to put into the pot as well as paying off the £175K mortgage on it.

The application was submitted on Thursday but have not heard anything back yet, my broker has said he thinks it could be a case of mine in the pile to process and if we was going to be declined we would have known by now?

No CCJ or IVA involved all agreements arranged with credit card companies direct, I have checked the equifax site and that marks a default but does not even note the payments that have been made every month since January 2009, I have also raised a dispute with them, at least on credit expert my payments are clearly shown.

thanks in advance to any of you who reply

Yorkie1

Note cross-posting of identical thread 45 minutes later.

https://forums.moneysavingexpert.com/discussion/3376356

holly_hobby

Hi,

Even though you are now out of default waters with some providers i.e you are back on normal payments terms/paid them off - you have previously defaulted on your credit agreements (which is applicable to any breach of the credit agreement).

Defaults do stay on your credit record until their 6th annual anniversary (whether satisfied or not - although your record should be updated to show satisfaction). They can only be removed before this time by CRAs, under the instruction of the original creditor, or assignee (if the debt was sold).

I would have a chat with the OCs, and see if you can persuade them to instruct the removal of the adverse data from your CR. with the CRAs if you can't wait for the 6 yr turnaround.

Hope this helps

Holly

Thrugelmir

In Jan 09 requested arrangement to pay on my credit cards, got agreements in place and managed payments plans effectively and still do with some coming off the arrangement and going back to normal terms, natwest and captial one both put defaults on my account even though I have it in writing along

You haven't cleared your debts yet. So hardly surprising that lenders are being cautious in granting you yet further funds.

Now you have the inheritance. Take the opportunity to sort your personal affairs out.

The defaults have been put on your account for good reason. To warn other lenders.

Rocket1971

thanks all, have gone through all my paperwork and on both arrangements at the time accepted and one states in writing no default will be issued! have raised query with both credit companies today and requested they do this urgently as broker called me to say that we are £90K short on what we want to borrow because of this, will keep you posted.

kingstreet

Even if the defaults are removed, the late/missed payments will still show up for upto 36 months and evidence of the payment arrangements may/will still be there.

Rocket1971

@kingstreet - thank you for your response, noting that you are a MA how would it be perceived if I paid off the 2 cards in question, would that change a lenders attitude? Have not slept over the weekend and dont get me wrong I take full responsiblity for this and it is not a case of wont pay but want to pay albeit if it take me a little time.
I note from one poster saying that now have I inheritance sort your affairs but that is in property no cash, will receive rental income from it as of next month.

JQ.

Sell both houses, buy your new house with cash, pay off all debts and start again with a clean slate.

Rocket1971

@JQ - I have my house up for sale - not a great time to sell at present but yes happy to sell mine, with regard to the rental property my Mother wanted it to go to my Son's, now dont get me wrong I have seriously thought about selling but have that niggle that she wanted them to have it (to young yet 8 & 10) so in the mean time we can rent it out with income of £1050.00 which would pay off mortgage owed in reasonable time. I was told by my broker that it appears to be the 2 defaults that are in turn making us the £90K short for the move. I have appointment with nationwide tomorrow to deal with transfer of equity of my mothers property when I will also discuss my situation with them no that I am expecting anything to change mind, then will need to put call into EA to say we cannot go forward with the property we made an offer on, I know we really should not have looked before selling our own home but we could not resist out of all of this many lessons learned 1. do not have credit card and 2. dont go house hunting until you are in a real position to offer and through the process with no problems.

kingstreet

Rocket1971 wrote: »

how would it be perceived if I paid off the 2 cards in question, would that change a lenders attitude?

Doesn't make much difference. Obviously unsatisfied adverse is worse than satisfied adverse and so on. However, most lenders look at the item, how much it was for and how long ago it took place.

Some lenders will accept a CCJ provided it's satisfied for less than £250 and is more than three years old. Others may accept a default(s) as long as it was more than two years ago.

It's a question of the right lender for the circumstances. However, some things, when you add them together, make the overall situation impossible so you'd then not get as high a loan to value or lower mortgage amount.

If you're in the hands of a broker, they will probably approach the same sources as the rest of us...