Mortgage application-first time buyer. Stressed!!

Hwhite_2

Hi,

I apologise in advance, but this might be long!!!

Myself and partner have saved enough money for a deposit and have found the perfect house for us to buy. We have started the mortgage application and passed the affordability so we are currently going through the credit checks. A nasty surprise has turned up on my partners credit history!

I am getting really annoyed with him, i know he's been daft so I would really appreciate advice, no nastiness.

He has been with the same bank for about 6years, October last year he's gone into the bank and changed his address. They said it was changed, but he never received a bank statement. He earns a nice wage, and has never been one to check statements as he thinks he knows where every penny is spent. A couple of months later, his mum gave him some post that had arrived to her house- some bank statements.

He called them and they said that the address had changed.

Another couple of months and his mum gave him some more bank statements, so he went back into branch and they said it had changed.

After numerous other problems, he decided to change banks. His wages stopped paying in and direct debits finished. His bank account was zero.

Now we have applied for the mortgage, the checks have shown that bank account to be overdrawn by £600 (all charges!).

He paid for something through PayPal costing £250 and didn't realise that it was still linked to his old bank account. A couple of weeks later, he realised that the money hadnt come out of his new bank so figured out what he'd done. He transferred the money over to his old bank and thought that was that.

After asking his mum for any post she has, he found one dated feb12 saying that his overdraft arrangement will be reduced from 500 to 200- why he's received a bank charge. As he's still not got statements, the charges have managed to escalate.

He has phoned the old bank, they've told him to go into bank and complain to the manager. I told him to phone back, which he did, and this time they said that they haven't got much evidence so suggested he takes it to financial ombudsman.

I am so stressed out as we are so close, yet still so far away. He's really irritated me with it, he should have kept going into bank with statements proving the address wasn't changed, but he hasn't. His excuse that he works mon-fri. But I am also annoyed with the old bank...

Is there anything we can do? Taking it to the financial ombudsman will take a while and most likely the house we want sold. Realistically, have we lost the chance at our first home?

Thanks in advance for any help

Fire_Fox

This is not a House Buying issue it is a bank account issue.
http://forums.moneysavingexpert.com/forumdisplay.php?f=20
Stop phoning, it's not like that has had any effect to date and leaves you with no evidence! You don't generally go to the ombudsman until you have exhausted the in house complaints procedure - and that starts with a written complaint. The bank probably won't lift all the charges whilst your partner is not even using that current account but you can try.

G_M

He's a donkey.

I am getting really annoyed with him, i know he's been daft so I would really appreciate advice, no nastiness.

Sorry!
Write to the bank with full explanation. Ask for the charges to be removed and for credit reference to be updated. Pay any genuine fees (eg the paypal fee if still outstanding).

If/when bank declines, either negotiate (agree a reduced charge) or appeal to ombudsman.

But the key problem as I understand it is not the money, but the credit history.

There are, I believe, 2 ways to get it improved:

1) the bank updates his reference (ie by telling the credit agency the issue was erroneous or is cancelled)

2) he appeals direct to the agency himself with his side of the story and asks them to remove the reference.

Has he downloaded copies of his credit file from ALL THREE credit agencies to see what they say?

kingstreet

Is there any chance you could tell us;-

- what appears on his credit file
- which CRA file is it on, or has it hit all three
- what is the decision of the mortgage lender
- purchase price, deposit and mortgage amount
- income multiple needed (net of ongoing credit commitments?

Thank you.

Hwhite_2

Thanks for your replies. G_M, he has been a donkey! lol. He hasn't checked any of his history himself, only what the M.A has told him, I thought that checking it now may make it worse as it's another check on file? He has a meeting with his bank manager tomorrow so I'll write a letter tonight and post it recorded delivery tomorrow after his meeting.

Kingstreet, the M.A hasn't gone into detail, has just asked what it is and can he explain it, to which he is investigating. She's also not given us an answer as she's waiting for him to try and get it sorted. The purchase price is £115,000, the deposit we have is £8,000 (so not quite 10% which is why we were keen to get it sorted as its not often I've come across someone who will lend with only that).

His basic gross income is 24,000 but he gets overtime and on his last p60 was £28,000 he's never taken lower than that.
My basis gross income is 21,500. With possible bonus on top.

He has a cc with £3,000 (0% for 2 yrs). And I have a car loan with £3,500 but will be paid off in February with a save scheme that matures.

Thanks again for your help.

kingstreet

Which lender did this application go to?

There aren't many offering over 90%. Is this a Newbuy application?

Income and affordability looks alright.

Get ready to order credit files from all three CRAs to find out what's registered and with whom.

Equifax

https://www.econsumer.equifax.co.uk/...erletter.ehtml

Experian

https://secure.wiseconsumer.uk.exper...x.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-re...pl=regPurchase

julieb1987

Checking your own credit rating does not affect your file...do it.