Mortgage hell!! Default!

kinginho

Hi there - hoping one of you can give me some advice or a nudge in the right direction.

I have found the property of my dreams! It means increasing my mortgage significantly. We have had the offer accepted and had a DIP agreed with the Woolwich to confirm that they would, in principal lend us the money.

Worth noting that the woolwich are our existing lender and have been for circa 5 years.

So, we have gone past the offer stage, searches have started etc. And here is my problem......

The Woolwich have come back and said that they wont now lend me the money because I have a default on my credit rating from Experian. This default was issued to me, and I agree with it by EGG in 2008.

I fell behind with my EGG card and they quite helpfully issued me with a default and instructed a Debt collection agency. Once they made contact I negotiated to pay them £4000 (original debt circa £4800) which they accepted and I paid within 3x days.

This has now popped onto my credit report as being only partially satisfied in 2008 and that I still have an outstanding balance of £450 which is live.

The woolwich have a policy of not accepting a default value of over £250 and as such Im stuffed, despite clearing the debt at an agreed price with the DCA. The underwriter at Woolwich has a "computer says no2 approach and wont budge.

My credit rating apart from this one blip is perfect, rated as excellent with a score of 980. I have had a mortgage with the woolwich for around 5 years and never missed or been late with one payment.

Have tried to contact Egg, but they have sold their cc business to Barclaycard. Have spoken with Barclaycard and they cant find any details and have suggested I write to them, and, as is sods law I cant find any correspondence from the DCA that I settled the debt with.

Am slowly losing the will to live! Is there anything I can do??
:mad:

Senior_Paper_Monitor

Go to another lender for whom the issue is acceptable.

Depends on actual figues (LTV/income/otehr credit activity etc) - it was niaive to believe that the agreement you reached would not have a major impact I'm afraid.

What can you do now ?

1) Go to a broker - this is what we do for a living.

2) Stop paying for the Experian score - its ego brushing (or destroying) nonsense

kinginho

Thanks for the response.

I understood there would be an impact. That isnt my issue. My issue is that I paid that debt off, yet it is now showing on my report as only partially satisfied, and that it is still with egg.

Surely Egg sold that debt to the DCA who I settled with so it should read as settled not partially?

Senior_Paper_Monitor

Nope - not the way it works (and frankly neither should it - you failed to meet the contracted agreement - I'm not being moralistic, just practical).

Without seeing the detail of the report and the documents at the time I can't comment as to whether the report is 100% correct but the fact remains that default and arrangement occured.

Dave_Ham

The payment part of full satisfied is completely irrlevant now.

The default mean that your credit score is not high enough, as it throws it out with Woolwich.

I appreciate how stressful this is, albeit a naive mistake I do not think you recognised the implications and now do in the hardest possible way.

Woolwich will not change their mind on this, so I would suggest you find a decent broker and get them on this today.

Firstly, get your Equifax (£2 version) and CallCredit (£2) version and put them in front of a broker.

What deposit do you have, how much are you looking to borrow, employment amount and type will all be relevant and may dictate success.

Woolwich do have some decent mortgages at 80% at moment, so rate may be a bit higher and obviously porting your existing one will not now be an option.

Good luck

Experian_company_representative

There should be no outstanding balance showing on a debt that has been cleared, even if it was a partial settlement. I suggest you get us to dispute the entry on your credit report, asking the lender to make it as 'satisfied'. That will look a lot better to prospective lenders, although I'm not sure whether it'll be acceptable to this particular lender.

James Jones

KingElvis

Even if it's "the property of your dreams" that default will stop you getting a good deal from all vanilla lenders.......

Sorry but that's a fact.

A decent broker will be able to help but don't expect market leading rates or an easy ride or a result at all.