Mortgages without Indefinate Leave to Remain & Defaults

santosh1

Hi,

Im new to MSE but thought i'd give it a go. I'm in a hugely frustrating situtation. My wife is British National and I'm South African with a spousal via. I get ILR this August and visa expires December 2013. Though I've been in the UK for 9 years now!

I was going to wait for ILR but we came across a property we fell in love with and decided to go for it right?..We were refered to a broker who then couldn't find many High Street lenders that would lend without ILR as there are very few that will look at it.

Nationwide - Offers mortgages to foreign nationals without ILR but 25% deposit. So that doesnt work for me but could be fine for others.
Halifax - Great, they offer 90% LTV for first time buyers without ILR. So we ended up going with them and easily obtained a DIP.

So we got our offer accepted and good to go. We then made an application but was done 4-5k short of the full amount as advised by our broker as it would offer us a better chance in securing and it did pay off as it was granted and survey instructed. However, we were not keen on paying an additional amount and wanted to go for the full amount since it wasnt a great deal more and we already passed so what could go wrong right? Well it turns out a lot!

Since we requested the full amount it was then referred to a senior underwriter, who then requested a cancellation of the survey pending review. The news was that it was denied due to a mannual credit check going back 6 years instead of 3 years done with the initial application approval and they picked up a mobile phone default that was 4 years old marked satisfied. I was not aware that Vodafone did this as we were locked in dispute for some time as I recall and I settled the amount but now to find out theres a default on record!

Well the broker suggested that I input a notice of correction on my credit file explaining the situation and that the default was unlawful. So i've done that and he will then use it in the appeal process. But I have no clue whether they will over turn their decision. We have no loans, no usage of overdrafts, no store cards and just 1 credit card each with balances paid in full each month with my credit score 835 and my wife's 950.

So now we wait but in the mean time i've requested assitance from a further 5 brokers. Some include London & County, Saviils and John Charcoal. I read that Woolwich might look at it but will know Monday as I bank with Barclays and will be speaking to them.

Should our application get denied by Halifax, we will have to look at alternatives. I'm not sure what choices we will have with 2 factors against us i.e. no ILR status on applicant 1 and 1 default minor default thats satisfied thats 4 years old.

I've read that if you have a single default thats a few years old and satisfied some lenders will consider you. Not sure how true this is.

Has anyone been through something similiar and offer some advice?
We really need to get a mortgage approved as we don't want to lose this property! Any advice/similiar experiences welcome...:):)

Dave_Ham

Hi there,

This is going to be borderline impossible unless you get that default removed.

Buidling Societies would potentially overlook the default, however almost all would want ILR.

I assume your Wife does not earn enough to take on in sole name?

I would be obtaining your Experian, Equifax and Call Credit reports in the background.

There is a vodafone rep who post on this site, may want to search for them and see if they can speed up your dispute.

If they take the default off it can happen quickly..

All the best

santosh1

Hi Dave,

Thanks for your reply.

I know our chances are against us but rather hit a brick wall before throwing in the towel.

There are only a handful of banks/building societies that will accept non ILR applicants and some of them asking up 25% deposits. I don't exactly know yet who are all the lenders that accept foreign nationals and waiting to here from anyone who does.

So far Natiowide, Halifax, RBS/Sottish widows and possibly Woolwich will accept non ILR applicants. Waiting to hear more about their requirements and others.

You're right as my wife only qualifies for half the amount we need. So we definately need to pursue a joint application.

I'm also trying to avoid HIL.

We already obtained our credit reports from credit expert and I'm the only with a negative/default that's marked satisfied and nearly 4 years old.

I've read about many people being affected by mobile phone defaults that's placed without their knowledge and paid. I also read that it would take numerous letters and weeks in order to get to a point where they will remove it and even that isn't certain. We have 2 week window possibly and that's it in order to get a mortgage sorted or we lose the house!

I will search for this Vodafone rep you mentioned. Hopefully they can help.
However if you manage to locate this persons details please pass it on. I will though call Vodafone on Monday morning and start he process as tyres 2 years remaining.

Finally I do hope that there will be lends that will overlook this minor default.

I will certainly write back on Monday with progress as my experience might help others.

Cheers

Thrugelmir

santosh1 wrote: »

I've read about many people being affected by mobile phone defaults that's placed without their knowledge and paid.

Defaults are registered if payments aren't made to contractual terms.

No requirement to notify the account holder.

ValHaller

Thrugelmir wrote: »

Defaults are registered if payments aren't made to contractual terms.

No requirement to notify the account holder.

While true, this does not fit the situation. There was a dispute and defaults should never be registered against a dispute.

Vodafone

Hi santosh1,

It's just a quick update to the thread to confirm that I've replied to you here.

Thanks,

Lee

Web Relations Team

Vodafone UK