Help?? Mortgage Refused after AIP Manually Accepted

dblenky87

Hi,

We need some help, we recently (2 weeks ago) applied for a mortgage with The Coventry PLC and had an agreement in principle given to us after a stressfull wait due to our AIP stage being put through manual underwriting at this stage.

Now, on Friday last week after this was all manually underwritten to give us the AIP we had our mortgage refused.

I could understand as you will read below that because i have previously had 'bad' credit (2 1/2 - 3 years ago) that there must be an issue, but my AIP had manually been accepted by a mortgage underwriter after seeing my report at this stage - it just seems to me that this person has been undermined and not had any say in the below.

We have had an offer accepted on the house, and have paid out £349 on search fees from the solicitor which will obviously be wasted if we dont get approved elsewhere.

Background Information.
My partner has excellent credit - and has been told so by The Coventry. Me, however isnt the best (well so you could say) 2 1/2 years ago i had an issue with Vodafone which then led to having an issue with a dorment bank account. Cutting a long story short vodafone didnt change a direct debit going into the Nationwide account which was £0 and no overdraft, to my current account at HSBC. Without me knowing my Nationwide account accrued charges and interest for 6 months (yes i know its my own fault for not checking my acc but i thought it was dormant). 6 months later i randomly opened my statement in the post to be shocked to see i had a balance of -£300 (o/d charges) which had accrued. Immediately i paid this off as i didnt want any issues. I then pursued Vodafone who said it wasnt there problem. Due to this dispute i refused to pay them the final £49 which i was to pay to close the account they then told me that they were going to put a default on my account. At the age of 21 i didnt know what this was and went along with the fact i was livid with the error they had made and they werent getting another payment from me. 2 months later i found out what the implacations of the default were so i immediately contacted Vodafone to pay the measley £49 to remove the default - which as im sure everyone knows it couldnt be removed, so paying the £49 made no difference.

Along with this i had 4-5 accounts which randomly over a period of 9 months had late payments. This was mainly due to immaturity, along with being a full time student and only working part time with no guaranteed hours.

These issues have had notice of corrections added to the accounts to explain the above.

This was all 2 1/2 to 3 years ago. Since then i am now on £21k a year salaried and been working with this company throughout this duration and have NOT had any adverse credit/missed payments or any problems with my accounts.

Can anyone give advice on what we can do - we have made a formal complaint to The Coventry this evening after our mortgage broker made a complaint on Friday which came to no avail. It is just one underwriters word against the other and they are just going to side with the second u/w who decided to decline We dont know who to apply with next as we arent sure of how strict other providers are, we have been told that 2 years clear credit should be enough but obviously not. Has anyone had any positive experiences with a provider when they have had a similiar credit situation? Thanks

Dave_Ham

Ok, no solicitor should have really taken and instructed searches until you had a mortgage offer. Check with them as expect they would not have conducted yet.

This does not mean I think you have no chance, as I do not. Coventry and amongst the strictest, unsure why you needed to do a manual Agreement In Principle though?

What deposit do you have and purchase price agreed and what is your partners income?

dblenky87

Not sure why it was manually underwritten, it may have been because it has a notice of correction on one credit site (Experian) but not on Exquifax or Call Credit. - Equifax and Call Credit have been notified of this today so hopefully within 48 hours they will be active.

The solicitor made us pay the fee just to get things started, but they did say if all else was to fail we wouldnt need to pay all the fees (around £975) just the initial fee for their time.

My income is £21000 and my partners is £18500, our deposit is 10% on a mortgage worth of £108495 (£12,050 deposit)

I do have other outgoings but our current mortgage advisor has gone through our affordability etc and we are fine.

He has suggested using the Skipton who apparently mainly focus on whether you can afford the payments more than adverse credit stats - so proof of savings over past year can help

we are just worried it might not get past the aip stage before we apply here or anywhere so they wont get to see our notice of corrections or proof of savings - just like we had a point blank NO from RBS today at the AIP stage?

We just want to know if there are any other providers?

Dave_Ham

Some on here seem to like Skipton, I am not mad keen and even though we specialise in adverse credit application; I have never placed a case with them which should tell its own story....

At 10% this will be hard work, although dependent upon what is on your Experian, Equifax and Call Credit reports. This should determine lender selection and policy on low value defaults.

Skipton feels like a guess, you may get lucky.

Solicitor should still not start searches until offer, unless you confirm otherwise. What work have they done thus far...

Best of luck

dblenky87

Ok thanks. Do you not think Skipton is a good bet then? Where would you suggest? We are concerned that if skipton decline that we are at a dead end, and a mortgage adviser told us if that happens then to wait another six months. We have waited over two years already and been saving non stop for the last year at least and it just seems like we arent getting any 'credit' for keeping our credit record clear. We just dont know what to do next and who to apply with?

Before we started looking at applying for a mortgage, HSBC suggested we go and speak to them as we both bank with them and have done for many years. They said it may be an advantage as they "know us". Or this could all be sales talk. Although they have nothing but bad press when you have a offer accepted i didnt know if this might be a good bet for actually getting an offer approved maybe?

Thanks

Dave_Ham

HSBC do get terrible press for how selective they are, although banking with them does help you. They are slow also though...

I cannot throw out names, especially without sight of the credit files and not experienced enough with Skipton to offer a valuable opinion...

It sounds like a shot to nothing from your broker, although again just my opinion...

Good luck though....

Thrugelmir

dblenky87 wrote: »

The solicitor made us pay the fee just to get things started, but they did say if all else was to fail we wouldnt need to pay all the fees (around £975) just the initial fee for their time.

The search fees are a disbursement that the solicitor incurs. So not their fees.

Have you checked to see if your solicitor is still holding the funds ?

dblenky87

Hi,
We haven't let the solicitor know yet, we have been lucky in a way that we are waiting for the vendors probate app to be sorted, were just hoping we can sort something within the next week or so, so we don't have to notify the estate agents, solicitors or the vendor. And yes te fees have been taken so not been held

Vodafone

Hi dblenky87,

Thanks for making me aware of your concerns.

If you'd like us to take a closer look at matters for you could you email us with the relevant details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it will take you to the Contact us form on our website.

To ensure that it reaches us could you quote the code WRT135 - MSE in the subject line and once our automated reply arrives update the thread with your email reference number and we'll get back to you as soon as possible?

Thanks,

Lee

Web Relations Team

Vodafone UK

Conrad

And this is the lesson for all those other posters asking whether thier missed payments a few years back will have any effect and this is why the only honest answer is that yes they may well mean a mortgage will be declined. Be very wary of yes men that like making people feel good with false messages.