Remortgage help......

OysterBucks

Hi All,
This is my first (long) post so my apologies if this is in the wrong place or the questions are a bit dumb.

We would like to remortgage, our tracker with Santander has just finished (upping form 3.29% to their SVR 4.74%, roughly a £80pm jump). OK we thought go back and see what they can offer as we did last time. Best (only) they would offer is a 2 year fixed at 4.49%. Not good enough.

So after some reading on here I approached Town&Country for advice, they suggested some different packages and we started yesterday with an application to the Nationwide. Unfortunately this was turned down almost straight away.

Now I had some credit issues back in 2006 with CC’s, an overdraft and a bank loan. These were handled via a CCCS payment plan for about 18 months until I came to arrangements to clear the balances, the majority with partial payments for Full and Final Settlement. The last in January 2009. To see where I stood the T&C agent suggested getting a copy of mine and my wifes credit reports from Experian.

I did this last night. Both show an excellent credit rating score of 999. However mine says 1 negative factor and some red dot flags against the above mentioned lenders. The negative factor is one of the CC accounts still showing a default balance of £2571, the difference between the outstanding balance and what they accepted as partial payment in Full and Final Settlement in February 2008.

My question. How bad is this, I assume it’s why Nationwide refused and what can be done in getting a better deal on a remortgage?


As an aside while on the Experian site I clicked through a couple of their mortgage links and this morning a get a call from a chap from Just Remortgages. A quick chat and he’s offering his services in “our situation”. Again anyone heard of them and is this normal from Experian?

Thanks for listening.

Thrugelmir

OysterBucks wrote: »

My question. How bad is this, I assume it’s why Nationwide refused and what can be done in getting a better deal on a remortgage?

This is the downside of not settling debts in full. Mainstream lenders may not be keen on transacting business with you until the default leaves your credit record.

So you may have to accept Santanders offering.

OysterBucks

I guess that's true. However if the lender accepted a payment in Full and Finale Settlement of the account can they still show an outstanding balance? Other lenders I made the same arrangement with show the current balance as "Satisfied" or "Settled".

To my second question, has anyone experience of dealing with Just Remortgages? They are saying they can help but were a cold call (from Experian enquiry) and so far I've seen at least two web sites for that name, one quoting very high costs.

Ta.

Dave_Ham

It is hard to 2nd guess without seeing the credit files, but any Agreement to pay/partial settlement is a huge issue unfortunately.

So on your credit file, what remains on there as of today. Does it say default still or just AP upto when partially settled?

The score is Experian give you is completely irrelevant given you both having 999 and not being able to get a mortgage with a mainstream lender validates this point.

Realistically, you have not stuck to a financial agreement and settled at a lower price than you borrowed. Therefore they are going to quite rightly share this information to other would be lenders, as you are higher risk.

You may want to hang on the variable until the adverse is older, but does depend upon the specifics of your case.

There will always be solutions, but not likely to be cost effective vs Santander offering unless you come back into mainstream lending...

gardenlady_2

We were in exactly the same situation as you with Santander. We phoned them several times and all they would offer was 4.59 fixed. I opened a 123 account with them, and a few months later they have offered us a much better follow on rate. The account itself is actually very good too!

kingstreet

Just Remortgages are a bit dear;-

For re-mortgages a broker fee of up to £1795 may be charged depending on your circumstances. For purchases a broker fee of up to 1.25% of the total loan amount, minimum fee of £995, may be charged depending on you circumstances.

http://www.justremortgages.biz/

OysterBucks

Dave, I know I have broken the rules in the past and they will share it.

The entry of Lloyds CC does not have a Partial Settlement date as the others do just the default balance (difference between outstanding and what they accepted as Full and Final Payment).

Dave_Ham

Then you may want to check with the company and also the Credit Reference Agency, as the initial amount should be the defaulted amount not the difference.

It is then either settled, not settled or partially settled. You cannot have 2 defaults for the same debt..

OysterBucks

Thanks I'll follow that up.

Thrugelmir

Dave_Ham wrote: »

It is then either settled, not settled or partially settled. You cannot have 2 defaults for the same debt..

The partial settlement is a seperate event for scoring purposes.