Turned down by BM Solutions :(

wigwam_salesman

We got turned down for a 100% BM Solutions mortgage last night. Found out this morning it is because of one £380 default from 2001 on my credit file.

Is it worth waiting until this gets removed by the company issueing it (it is satisfied and should be marked as so) or would it be better to go with a mortgage that has a less strict criteria?

They did not quibble the amount we want to borrow and it said the credit score is fine but it flagged us on "adverse credit".

toonfish

evidently the credit score isn't fine, or it would have gone through. Have you tried an appeal to BM solutions?

wigwam_salesman

Our broker spoke to them this morning which is how we found out it is that default.

They said "it is a default registered in 2001 that has caused the application to fail and without it you would pass". I found out how much the default was for by looking on my creditexpert account.

What would you suggest we do? It might take a while for this company to mark the default as satisfied as they should have done that a LONG time ago!

Rick62

Was it satisfied when it was incurred (ie within 4 weeks)? My understanding is it will still show on your credit file (although as satisfied) unless it was paid within 2/4 weeks.

owned_by_2_Siamese

Not sure if this helps!

If its a default i.e a missed payment(s) where the lender issued a default notice under the Consumer Credit Act - if it has been bought up to date since 2001 it will continue to show as having been a default for 6 years (i.e the history will show that you defaulted even if the account is now up to date)

If its a default that led to a lender enforcing it (county court judgement) and it wasn't satisfied within 4 weeks of the judgement from the court then even if you subsequently pay it off it will show as a judgement and a satisfaction for 6 years from the date of the judgement - and the deafult will still show as above.

Check your credit record to see exactly whats on it - you will be suprised to see on a full search every payment amount for every finance (and mobile phone bill) you've had - even if you were only a few days late on payment it will be recorded - it's scary!!

toonfish

unfortunately BM can be one of the "computer says no" companies at times, particularly on 100%. The annoying thing is that with a deposit they are happy to do almost anything. Your broker needs to pursue it through his business development manager and if they won't budge you will need to try a more understanding lender. Ensure he speaks to them before submitting an application though - one advantage with BM is that this search should not have been recorded

luckyfool

As has been previously advised having the Default updated to reflect that it is satisfied will not automatically mean that it is removed. A satisfied default will still show up.

BM Solutions have not been shy about publicising within the broker market that their credit scoring on the Mortgage Plus 100%+ range is very tight. Even if the default is updated and marked as satisfied I would be very surprised if that changed their decision.

Speak to your broker but Accord Mortgages (Intermediary lending arm of yorkshire building society) do 100% deals, and they can ignore up to 1 default. Especially if it is made clear on the agreement in principle application that it is satisfied and that you can prove it.

Hope this helps.

wigwam_salesman

Right...an update on this: I spent a bit more time looking at my credit file last night and realised that the default is not one I paid a long time ago and satisfied (that has gone from my credit file so must be over 6 years now) but is actually one that has only just been put on my credit file even though it was registered in 2001.

It is unsatisfied and is also for about £390 which is why I thought it was the same one.

We really want to get a mortgage quickly so are there any companies that will accept us for our mortgage with one unsatisfied default for what I think is a small amount. Even if I manage to track down the issueing company and pay it today it will be a while before the default is marked as satisfied.

Thanks.

Leon_W

wigwam_salesman wrote: »

We really want to get a mortgage quickly so are there any companies that will accept us for our mortgage with one unsatisfied default for what I think is a small amount.
Thanks.

Surely you should be asking this of your broker. There are companies that will look at this for you but rates are inevitably higher. Off the top of my head I would say First National but without knowing your full circumstances I couldn't advise.

UK007BullDog

To get a 100% mortgage your credit record needs to be lilly white and perfect. You are asking the lender to take 100% of the risk to lend you money on a property. They will only do that for those with perfect credit records.

wigwam_salesman

UK007BullDog. I know that is not true because I have several friends that had a default on their credit file and got a 100% mortgage.