Mortgage Rejection: bank account fee default

Watchoka

Hi

Approximately 2005 I got a mortgage from Ulster Bank and they said that if I opened a bank account with them "ufirstgold" with a monthly fee of £13 I'd get a better mortgage rate.

Opened the account and paid £150 (a direct debit wasnt set up) into the account to cover fees then I forgot about the account....

I still own the old house I lived in when I applied for the ufirstgold account and maybe they did send letters about the fees I don't know but the tenants I had in never mentioned it and my fault for not checking.


£300 in fees built up apparently and the bank then wrote them off. .

So - I got to apply to Halifax (through a broker) for a mortgage. 75% LTV (£90,000 mortgage). Same old story - got an offer in principle but then rejected because of the £300 default which showed on my Experian credit report. I'd naively never ordered a copy of the report before so wasn't aware of the default.

Went into bank yesterday and because they've written debt off I can't settle it. Obviously if bank sent letters about fees I can't ask them to write a letter to Halifax to say it wasn't my fault.

So no mortgage offer and £300 default sitting on my credit file for 6 years which I can't settle because it's been written off. I guess this means for the next 6 years or so I shouldn't (or can't) apply for a mortgage.

Bummer.

Dave_Ham

What was the registration date for the default.?

Watchoka

31.03.2011 is the date of the default.

Experian credit rating is 879 Fair

So going to be 30.03.2017 before I can move my family. I'm a stupid idiot.

Dave_Ham

Not necessarily - well cant comment on the idiot part, but there may be options depending upon the detail of the case.

Firstly, are you based in Northern Ireland?

Secondly, have you got your Equifax and Call Credit files - assuming not, will be worth getting...

Watchoka

Hi Dave

Thanks for not commenting on the idiot part...

Yes based in Northern Ireland. Haven't got any other credit report but Halifax must've only used Experian.

Have gone through Buildstore due to the property we were looking to purchase being a shell property therefore wasn't a standard mortgage we were seeking.

Had to show we had balance to pay for purchase price of property and £40k to make house habitable (which we had). Value of property when finished will be about £185k we think.

Feel like we've jumped through hoops to try to get this mortgage - cashing in ISAs etc and now to be felled by a £300 we didn't know about is crushing. However we need Halifaxs money and they can pick and choose.

We'd just like to try to rectify matters if possible.

opinions4u

Went into bank yesterday and because they've written debt off I can't settle it.

Thanks you RBS for this. I'm delighted, as a taxpayer owner, that you're incapable of collecting bad debts even when the customer is stood in your branch waving wads of cash at you.

Incompetents.

OP - there are worse idiots out there. RBS (and their Ulster subsidiary for example).

Dave_Ham

Start by checking your Equifax and Call Credit reports and see if the default is reported on them and how.

Being in NI does unfortunately restrict a few lenders and I am not sure I read the buildstore/Halifax part correct..

Elaborating on this and the other reports will help give a clearer picture and sure someone will come along who can add value as I off out now so will be offline most of the day...

All the best

Watchoka

Thanks Dave I appreciate your advice - I'll check the other reports

Watchoka

never thought of it like that opinions4u!

opinions4u

Watchoka wrote: »

never thought of it like that opinions4u!

Good luck by the way.

I'd suggest a complaint about the account fees, as you weren't benefiting from the insurances etc provided.

Ask them to write off the debt and correct your credit file.

It's a long shot, but may just make the next few years a tad easier (and cheaper) if successful.

I couldn't possibly suggest that you tell them you instructed them to close the account prior to moving.

Watchoka

Thank you!