will they withdarw the mortgage offer? - FTB very nervous

nearlyAhomeOwner

Hi all

I love this site and come on here all the time, but havent posted yet. Please be kind!

I need some advice, well really some reassurance

I am about to exchange on my 1st home with a the aimed to complete on the 16th of November

Today, I realised that Nationwide may do a final audit or check between exchange and completion. Fine I thought.

Now, I subscribe to all the CRAs (I know a lot of people think they are a waste of money, and I know that the number they pluck from the air means nothing etc, but during the mortgage process I wanted access to these)

Today I checked checkmyfile and to my horror realised that BT have put a late payment marker on there from November last year. Now firstly this is incorrect - I have never had an account with BT. I once made a payment on behalf of my father last year, which led to them changing the account details to me and it took 4 months to resolve. This was around October/November last year. I have immediately written to BT to query this but obviously this will take time to resolve.

What is strange is this:
The late payment marker is for Nov 2011, however according to Equifax this was recorded in Feb 2012. Whats even more strange is that when I checked checkmyfile last month it wasn't there. So I am wondering why this appeared only now, when it was logged in Feb 2012? The information shows the account was opened in Oct 2011, late payment in Nov 2011, and closed in Feb 2012. As I say this is not the case, I have never opened an account with BT.

What I am really worried about now, is that in between exchange and completio n Nationwide will now remove the mortgage offer because of this. Is that likely? Or would they already be aware of this from their own credit check they did in September on me (even though it wasnt visable to me on my credit file?) They made a full mortgage offer to me at the end of September.

I am really scared that I will transfer my deposit to the solicitor and then in between this and completion Nationwide withdraw the offer. It says in the offer that they can withdraw if there is a material change in my financial situation. Is this a material chnage? This isnt showing on Experian

Further to this, I haven't applied for any other credit since applying for the mortgage but Barclaycard have just upped my credit limit from 1400 to 2800. Do you think this will have any impact? I am wondering if I should cancel another credit card ASAP

Really sorry for the questions, very panicy... would really appreciate your knowledge on this

Thank you so much
C

jbainbridge

Talk to your solicitor - only they can give you the reassurance you want.

Fire_Fox

Don't know what checkmyfile is but assume it is third hand information so could be incorrect or out of date: check with Equifax and Experian themselves. http://www.moneysavingexpert.com/loans/credit-rating-credit-score

If there is a problem speak the the credit reference agencies directly and explain the BT account is not yours, they will at the very least be able to get a note put on the file. Then speak to BT and get this erroneous listing removed, you might have to make a fuss to get it resolved quickly.

You might be better getting this thread moved to the Mortgages board TBH.
http://forums.moneysavingexpert.com/forumdisplay.php?f=15

nearlyAhomeOwner

thanks, have moved thread

Will speak to solicitor tomorrow

Thanks again

cwcw

To me this highlights a stupid loophole in the lending process, where a lender can effectively subscribe somebody to financial ruin by pulling funding between exchange and completion.

If I was in charge of the FSA I would be looking to regulate this. Exchange should be treated by the lender as though it was completion. If funds are offered, they cannot be withdrawn once exchange has taken place. All their checks should be done by then, and they should commit to the purchase in the same way the buyer has to. If some criteria change between exchange and completion - tough. It is no different to criteria changing the day after completion, as could happen now. There could be some sort of time limit on this rule, e.g. exchange and completion within 1 month.

m0bov

when i purchased my flat the sol would not exchange until the funds we released.

cwcw

m0bov wrote: »

when i purchased my flat the sol would not exchange until the funds we released.

Which is good practice but I think even then the lender can still request the funds back before completion without any consequence to themselves, or without really even giving a justification.