Mortgage Application with Barclays

Wantahouse_2

Hi

I'm panicking a bit, so need some advise from any brokers with experience applying for mortgages with Barclays.

My partner and I applied for a mortgage with Barclays last week. We haven't heard back yet but we've been told there is a backlog and a delay due to the bank holiday. Credit searches have been logged on both our credit reports.

However, I have only just noticed a problem with my credit file. A few years ago (2008/2009) I had a loan with Barclays (I bank with them). I was late with 1 payment and straight away called them up and they offered to extend the loan by 1 month, and payments would carry on as normal. They said this woudln't be logged as a missed or late payment and the loan would just run its natural course. I agreed to this, and kept up the payments on time and the 12 month loan ended after 13months as planned.

However, today I have only just noticed that they have me marked as being late with numerous payments on this loan - it looks like every payment after the initial late payment has been marked as late by 1 or 2 months. I've rang them up today and they've told me to send a copy of the report and a letter explaining the situation and they'll investigate. This could take 2+ weeks!

My worry is now is will my mortgage application be rejected on the basis of these missed payments. I've never missed anything on any account since that one payment, and I thought I was doing the right thing by getting in contact with them straight away to arrange repaying it.

I'm also really frustrated with myself for not noticing this before submitting the mortgage application. It had compeletely slipped my mind that I'd been late with that one payment and everything else in my report is glowing.

I'm just wondering what those with experience out there guess Barclays might do? Should I just accept defeat, and if so, is there any appeals process I can go through as I really think the marks on the report are the fault of Barclays.

Thanks in advance

Thrugelmir

Wantahouse wrote: »

Should I just accept defeat, and if so, is there any appeals process I can go through as I really think the marks on the report are the fault of Barclays.

Wait to see the outcome of their investigation.

Not the fault of Barclays per se. As you were in arrears with the loan repayments. So the default would be registered automatically.

They said this woudln't be logged as a missed or late payment and the loan would just run its natural course.

Was this verbally or made in writing?


May not have any impact on your mortgage application in any event.

Wantahouse_2

Thrugelmir wrote: »

Wait to see the outcome of their investigation.

Not the fault of Barclays per se. As you were in arrears with the loan repayments. So the default would be registered automatically.



Was this verbally or made in writing?


May not have any impact on your mortgage application in any event.

Hi - Thanks for responding

I just want to clarify that there was no default. No defauts are registered. I understand if the initial late payment was registered - I'd have no problem with that, but my concern is that, despite arranging to extend the loan by an additional month, and paying the remainder of the payments on time, that every other payment was registered as late. This doesn't seem right.

All of this was arranged over the telephone so I'm worried I may have no comeback other that to request they go through the phone records as I remember the conversation clearly as the guy I talked to made the point that the re-arranged payment wouldn't be covered by the PPI I had taken along with the loan. I really thought I'd done the right thing by calling them and making this arrangement.

I really hope this doesn't result in me losing the mortgage and the house we've offered on. I'd be devastated. I really didn't think one late payment could have such a detrimental effect

Thrugelmir

Wantahouse wrote: »

I just want to clarify that there was no default. No defauts are registered.

A default is as simple as a loan repayment not being made to contractual terms i.e. on the due date. The late payment indicators are themselves disclosing defaults.

Default does not require total non payment of a debt owed.

Wantahouse_2

Ok, thanks. Guess I'll just have to wait and see if the mortgage gets rejected.

Thrugelmir

Wantahouse wrote: »

Ok, thanks. Guess I'll just have to wait and see if the mortgage gets rejected.

Your long standing relationship with Barclays may well assist your cause.

Wantahouse_2

Just one thing - we got an AIP with Barclays before we proceeded to the full mortgage application and they did a credit check then. I know AIP's aren't a guarantee, but as it looks like they do a full credit check at AIP (it appears on the credit files) does that mean they might already be aware of the missed payment and still be considering proceeding as long as we meet affordability? Nothing has changed between AIP and full application - there was only a couple of days between them.

Wantahouse_2

Cheeky bump for anyone with experience going through Barclays?

Dave_Ham

I think you will actually be ok.

You have an AIP, when Barclays search. You had the issue with Barclays, bank with Barclays and have applied for the mortgage through Barclays - you may even have a guaranteed limit with them.

Call centres are hard to deal with due to shift patterns etc. I personally would go and plonk yourself down in the chair in your local branch and ask to see the mortgage advisor.

Most larger Barclays branches will have one on site, do not tell them you have already applied over the telephone until you are in the office. Just say you need to see the mortgage advisor about a new mortgage...

Good luck

Wantahouse_2

Dave_Ham wrote: »

I think you will actually be ok.

You have an AIP, when Barclays search. You had the issue with Barclays, bank with Barclays and have applied for the mortgage through Barclays - you may even have a guaranteed limit with them.

Call centres are hard to deal with due to shift patterns etc. I personally would go and plonk yourself down in the chair in your local branch and ask to see the mortgage advisor.

Most larger Barclays branches will have one on site, do not tell them you have already applied over the telephone until you are in the office. Just say you need to see the mortgage advisor about a new mortgage...

Good luck

Hi Dave

Thanks for responding.

I didn't apply for the mortgage over the phone. I've gone through an independent broker but she hasn't been available since I noticed the problems with my credit file yesterday to discuss if this will have an impact. I haven't dealt with any call centre people - only the person in the Personal Loans department that gave the address of the department that investigates issues with credit files.

I'm clinging to the hope that the passing the credit check for the AIP is a good sign. Or that at least we'll be able to explain the situation and make them see that it was just one late payment 3 years ago.... I really hope this doesn't ruin my chances

Dave_Ham

Sorry I missed that so ignore using the local branch.

AIP is a good sign for sure with Barclays, I still think you would be ok.

You may find your broker has already used the guaranteed limit and therefore you definitely do not need to worry.

Your broker will be the only one who can completely allay your fears, but Barclays are ok in terms of sticking to their AIP's so I think you will honestly be fine.

If someone else can report the other 2 posts above as Spam, may help to get removed from thread...