Credit report shows missed mortgage payment but inaccurate

sarahlouise900

We have been applying for a new mortgage to purchase a house, however we have been turned down by lenders due to our credit report showing a missed mortgage payment 9 months ago which is incorrect. We have all our mortgage statements to prove it.

We are aware we can get this corrected but it will take months and we don't have months as we are ready to exchange on the sale of our current house.

We have now had to proceed with a mortgage with a very high interest rate due to this error costing us an extra £12,000 over 2 years!

Is there anything we can do to claim compensation for having an incorrect credit file, causing us having to go to a sub prime lender with a ridiculous interest rate?

dunstonh

Is there anything we can do to claim compensation for having an incorrect credit file, causing us having to go to a sub prime lender with a ridiculous interest rate?

Why are you having to go sub prime? Surely a prime lender who is given proof that there were no late/missed payments would consider it via manual underwriting? Yes it would certainly rule out some lenders who do not look at cases manually. However, it shoudlnt rule out those that do. Especially if you get the existing lender showing the error to confirm in writing that there is no arrears.

kingstreet

dunston got there first - how did this error take place?

I'd expect a late payment, but a missed one? Is your credit file entry showing a string of 1s from the point of the problem to date?

I'd expect a smaller building society with manual underwriting to be happy to accept this, if it is a single late payment with an explanation and statement back-up. In the good old days before "computer says no", arrears was defined as more than one month missed on more than once occasion. Needless to say, these days, systems are a lot more unforgiving.

sarahlouise900

Thanks for your reply.

Unfortunately we have provided evidence as you state i.e. mortgage statements. We also have a letter from our mortgage provider but unfortunately we have been told it's a standard letter the send out which just states we are 'regular payers' and have made regular payments over the last 6 months' - but we are still being turned down and they are stating it's due to this blip on our credit report.

We have been to high street lenders and building societies which have an underwriter but they won't budge. They state due to the credit report and the fact we require 85% LTV, they can't help. Plus we were then started to get worried on all the search footprints the lenders were leaving on our credit file after being turned down.

sarahlouise900

Hi Kingstreet

Thanks for your reply.

With regard to your question, there is no string of '1's after this problem.
Just the one '1' nine months ago.

Thank you for your advise.

kingstreet

So who've you been to, to be turned down and where've you ended up on the sub-prime deal?

Broker handling this for you?

sarahlouise900

Hi Kingstreet,

We have been to Barnsley Building Society, Nationwide, Santander, Coventry Building Society, RBS and ended up with Precise.

kingstreet

With 6 searches on file, I don't know what to suggest.

Did a broker suggest these lenders? It seems a very hit and miss approach to a fairly simple issue. How did you end up with Precise?

sarahlouise900

Yes, the broker approached these lenders.

They said it was due to us having 15% deposit and needing 85% LTV and based on their credit scoring criteria.

We ended up with Precise as these were the only sub-prime lenders with an 85% product.

GMS

Did you not approach your current/previous lender to see if they would offer you anything?

sarahlouise900

Unfortunately my current lender have stopped offering new mortgage products.