I don't meet criteria yet passed AIP?

NightNurse

Hi

My AIP, carried out yesterday, has been successful and a full application has been placed. However I checked my credit report this morning and on 4th March there was a record of a missed payment on a loan - my first ever! Credit score has been ' Excellent' for years. Now it simply shows 'Good'. I'm flabbergasted!

The lending criteria states:

No arrears on mortgage, fixed payment loans or rent agreements
No more than two consecutive missed payments on credit and store cards
No more than one CCJ to a value of £250 (not registered in the last 12 months)
Communications/mail order arrears will be ignored unless the scale/frequency indicates cause for concern
I meet all the above except for the first one now.

My question is, why did an AIP not pick this up? Or will this somehow come to light at the underwriting stage? The loan provider has admitted that this was an error as that payment was made manually a few days later, rather than collected by direct debit. However their correction will only register during their next monthly update of Experian.

Is my 'missed payment' not classed as arrears?

homer_j_3

who is the lender?

NightNurse

Sorry I should have said - lender of loan showing missed payment is Cahoot. Mortgage lender - Bristol & West

homer_j_3

ok - not too sure as I dont really deal with them but it could be that they use equifax rather than experian, it could be that considering your circumstances fully - size of deposit and affordability then they are prepared to overlook.

I would say if they do pick it up and cahoot are prepared to confirm it was an error and correct your credit file then you will be able to prove this to b&w and hopefully get the application back on track without too much hassle.

NightNurse

homer_j wrote: »

ok - not too sure as I dont really deal with them but it could be that they use equifax rather than experian, it could be that considering your circumstances fully - size of deposit and affordability then they are prepared to overlook.

I would say if they do pick it up and cahoot are prepared to confirm it was an error and correct your credit file then you will be able to prove this to b&w and hopefully get the application back on track without too much hassle.

Thanks, Homer. I really hope they don't come back as time is not on my side. Yes I have a 15% deposit so that could be a factor. They've done the full application credit search also on the same day as I did the AIP but that only shows up as a money laundering identity check. When lenders do credit checks do they print off your credit report for scrutiny later or once the AIP comes back ok then that's the green light as far as credit criteria is concerned?

homer_j_3

i will leave that to be answered to someone who knows the lender better than I do.

I know with Northern Rock for example, they are gits for agreeing mortgages then coming back latersaying they have found something else that wasnt originally found.

I know that some lenders will give you a binding decision in principal which means that they have fully satisfied themselves of your credit worthyness so providing nothing differs on your application you will normally not have any issues in respect of your credit file.

I personally would be asking cahoot for a letter to confirm that it was their error and that they will rectify your credit file. This way you can fax to them or copy and send to them if they raise and most lenders will accept a letter in this manner to overlook the credit file.

NightNurse

homer_j wrote: »

I personally would be asking cahoot for a letter to confirm that it was their error and that they will rectify your credit file. This way you can fax to them or copy and send to them if they raise and most lenders will accept a letter in this manner to overlook the credit file.

I have asked them in writing and explained the urgency of the situation. Lets hope they act quickly in time for end of month Experian updates.

homer_j_3

glad to hear that - hopefully you wont need it but if you keep it safe, it will always come in handy if it is ever queried in the future