2nd Time buyer confusion!

kingstreet

its_smee wrote: »

Please help I'm completely confused! I submitted an application to Halifax on Friday, I was told I had an A pass, I've today had the call to say I've been declined when the application went to the underwriters, with the advise "check your credit record - Linked addresses".

As I've said in a previous thread in September 2006 I defaulted on a loan £5076, and December 2006 a mobile phone bill £127. I was honest with the halifax about this, and going off the reason given I don't think this was the issue.

I made the application myself, as my husband has had credit problems in the past, (less recently than mine, (2005) but he's still in an arrangement to pay with two of them), but again told the halifax mortgage advisor this and he did not think there would be a problem. I cannot see any reason on my credit record why this has been rejected other than that my husband is making these arrangements to pay, or is there something I'm missing? The mortgage advisor at Halifax said he was shocked by this too, and I'm at a complete loss where to go from here, as if its not my defaults does this mean that I've been black listed for much longer than the 9 months worst case senario as I had seen it? The mortgage was for 85% LTV (£87,000 property - £73,950 mortgage)

I'll be back in a minute to deal with both these posts.

kingstreet

This is odd. I've never seen someone get an A pass which turned into a decline a couple of days later.

Did we know about your husband's situation? I can't remember reading anything about it. Do you have any joint accounts or commitments? If you have had a joint mortgage, there may be an association on your credit files causing your application to be pulled down, even though he isn't a party to it.

What do your credit files show? Anything there surrounding this "linked address" comment? Is that where the association is linked?

In addition, I posted earlier about Abbey's stance on not accepting gifted deposits from someone who would be living in the property but who wan't party to the mortgage.

We will not accept a gifted deposit if:
- provided by the vendor (unless an acceptable new build incentive from the builder/developer);
- protected by a Deed of Trust (or similar);
- the person providing it will be living in the property, but is not named on the mortgage; or
- there is a beneficial/equitable ownership/interest in the property.

I'm not sure about the Halifax view on it, as there's nothing in the online criteria about it. It may have made the underwriter very nervous though.

its_smee

Thanks for taking the time to reply.

The mortgage advisor at Halifax was as confused as me to be honest.

I let the mortgage advisor know that my husband has had credit issues, way before we met all stemming round his divorce from his first wife. I won't go into the details as excuses are excuses, we have both still registered defaults in the past, other than he has no CCJs just defaults, which have passed the magic "6 years" but he is still paying with arrangements to two creditors. We have a joint account (with the halifax non the less!) which has been maintained within all credit limits no issues at all from it.

I really can't see anything in the linked addresses which may cause a problem, all the credit is either being maintained well or settled, nothing outstanding to any creditors. One thing that does crop up is my previous mortgage was as tenants in common with my cousin, who is currently re mortgaging, and my credit file has been searched as part of this, as I didn't know we still had a financial connection, I have now requested this be removed from my file. One significant part of that is that the property I was hoping to purchase is 3 doors away from the property we shared, clutching at straws could they have over looked the numbers of the houses and just seen that she has made a mortgage application for a house on X street too?

As both my husband and I have said this is particularly devastating as we have had our issues before we met and have strived to sort them by selling our respective properties to fund the repayments we owed and Mr and Mrs Smee of the last five years have perfect histories in terms of credit management. We both have car loans which are paid on time and in full, we both have credit cards which we use and pay off in full each month, neither of us missed a single mortgage payment.

kingstreet

its_smee wrote: »

could they have over looked the numbers of the houses and just seen that she has made a mortgage application for a house on X street too?

That's possibly something which would be picked up by the human eye, after being missed by the computer.

They've specifically mentioned linked addresses, so they may be trying to point you in the right direction.

my previous mortgage was as tenants in common with my cousin, who is currently re mortgaging, and my credit file has been searched as part of this, as I didn't know we still had a financial connection, I have now requested this be removed from my file

When were you removed from this joint property & mortgage? What's your cousin's credit history like? Are the mortgage payments up to date since you left?

its_smee

I was removed from the mortgage in 2007, my cousin has a good credit history, in the days we shared a mortgage it was my default which was affecting her. She says all her payments are up to date, and I have no reason to doubt that.

I wish I knew what it could be so that if I could rectify anything that needed rectifying so not to loose this house, although that seems inevitable now.

its_smee

One final question and I'll shut up I promise , can lenders see anything on my credit record that I can't. Other than information on financial associates that is. I've got a copy of mine and hubbies experian and equifax reports and I'm going to take them to a financial advisor who may have more of an idea than me whats gone on, is there anything that won't show on them that is visible to lenders?

kingstreet

Nothing on your credit files, no.

However, there may be an entry on the anti-fraud register placed purely by mistake and if you're going to have a look at all the possibilities, you should look at this one too.

http://www.nhunter.co.uk/data.html

Problems gaining credit
If you areexperiencing problems obtaining credit, then we recommend that you first obtain a copy of your credit file from the three credit reference agencies. When you have received your information, it will contain details of what action you need to take if you dispute anything that is present on your credit file.
Call CreditEquifaxExperian
Howto obtain details of the information we hold about you*
Your full name including any previouslyused in the past 6 years.
Your date of birth.
The addresses you have occupied during the last 6 years,with the dates you were at each address.
Payment of £10. Cheques or Postal Orders made payable to N HUNTER Limited.
Proof of identity.

Proof of identity is needed that clearly identifies or reconfirms who you are. This level of security is required to protect against fraud

* Please note that if your application data contains any joint applications, we will also require their authority, an additional fee for each person, along with identification requirements as above.

You need to enclose two proofs of your identity (photocopies acceptable), one from each of the two lists below.

List 1
•CurrentUK/EEA Passport
•UK Photocard Driving Licence (Full or Provisional)
•Firearms Licence/Shotguncertificate
•EEA National IdentityCard
•Northern Ireland VotersCard
•Current Non-UK/EEAPassport with a valid endorsement evidencing leave to reside in the UK


List 2
•Full UK Paper Driving Licence
•State Benefits Entitlement Document**
•State Pension Entitlement Document**
•HMRC Tax Credit Document**
•Local Authority Benefit Document**
•State/Local Authority Educational Grant Document*
•HMRC Tax notification Document
•Disabled Drivers Pass
•Financial Statement issued by bank, building society or credit card company**
•Judiciary Document such as a Notice of Hearing, Summons or Court Order**
•Utility bill for supply of gas, electric, water or telephone landline**
•Most recent mortgage statement
•Most recent Council Tax Bill/Demand or Statement
•Current Council Rent Card
•Current Council Tenancy Agreement
•Building Society Passbook which shows a transaction in the last 3 month and your address

** These documents must be less than 3 months old.
We reserve the right to see original identification documents.

All theinformation listed above should be sent to:
N HUNTER Limited, PO Box 2756 Stoke-on-Trent ST6 9AQ

its_smee

I just wanted to add we've got to the bottom of it, and it's my husbands credit issues as we share a joint account. We have an IFA looking into it at the moment to see if he can find a lender, but I'm sure you will know its not looking good for us.

One shining light is my husbands DMP to which I keep referring is actually not a DMP at all but a self managed arrangement with two creditors, which we can pay off along with my car loan using the deposit we have saved up, should nothing come of the IFA's investigations, so we will be in a much stronger position next summer to look again once we've saved up another deposit.

Should the impossible happen and a mortgage be found, we would be paying less than we currently do in rent, and can easily save to quickly pay off husbands arrangements. I instantly feel more positive either way, and will quickly pay off the remainder of his debts. I feel like a weight has been lifted!

Just wanted to thank all who commented especially Kingstreet, as it gave me real food for thought!

its_smee

A bit of an update, the IMA has put our case to a local building society, for a joint mortgage, they have seen our credit files and bank statements, now asking to see proof of our deposit and bank statements a little further back plus have written to our employers for references, I cannot imagine them finding any fault with our accounts, as I've said before we have really sorted ourselves financially and have not missed a rent/loan/credit card/utilities payment in the last 5 years (or ever for most of it, just those darn loans in our younger days!!) but I know that there are no certainties in this game! How long are they likely to take from here in coming to a decision? I am feeling very nervous about things (I'm generally of a nervous disposition!!) and I keep repeating I just wish they'd hurry up and reject us!! As I'd rather hear quickly if they are going to. Its been a week since the original application was submitted.

britney02

Hi, I'm very new to these forums, but been having a good read through and have found them very helpful.
I am in a difficult situation, and awaiting a decision from HALIFAX underwriters, i don't think for one min we will get accepted, but i keep hanging on to the hope that we may.
Our situation is wm and my husband have a new buisness with just 2 yrs accounts (that seems to be ok) the problem we have is we have a default back in May 2010 (so nearly 2 yrs ago) and a few late payments back in 2010 (these were always spoken to the lender)
Our money situation is so different to how it was in 2010, we have very good accounts from our acountant, however when we went through the prinicpal mortgage stage, which was declined, but the advisor was advised by his manager to refer to the underwriters as our accounts were good with a growing buisness..
We have sold our house, and put a offer in on another house (beacause we were told we would be able to get a mortgage with our accounts) Im so worried, this isnt going to happen esp reading all the other threads, with people even getting turned down with a excellent credit report.
I just wondered if anyone on here ever been in a situation like this??and by any chance if any of you finally got there mortgage with a happy outcome, or is that just wishful thinking!!
Its such a pity your past credit is not reflected reflected with your current situation, im SO worried im going to have to pull out of the house sale for our buyers, and our sellers, as neither of them in a chain ( any comments please please please