Avoiding withdrawal of mortgage offer.

choppy1

I am in the process of buying a house for myself, my partner and her two boys. Our large deposit is mostly made up of equity in her house, and hence I feel an enormous responsibility on many levels not to screw up.

Recently, a number of arrears have appeared on my credit file as a result of late payments to a student budget account (2x months overdue, as updated 10 Feb 2013). This, despite the account having been settled on 8 Feb 2013.

As part of the mortgage application, I was required to move my current account to my mortgage provider, who undertook an agreement to transfer all my direct debits from my old account. This was not properly completed for the account in question (and hence, it went into arrears).

I have reason to believe that my mortgage provider did not properly notify the creditor re. my change of bank details. Otherwise, it is possible that the creditor is at fault (notwithstanding the fact I should have chased all of this up at the time).

As far as the house purchase goes we have received a full mortgage offer, and exchanged contracts. We are due to complete at the end of March.

I understand that it is extremely unlikely that this will have any impact on us, as 1) our mortgage lender probably will not credit score us again and 2) their lending criteria (as found on a third party website for intermediaries) is that applications be referred if either applicant has arrears greater than 3 months in the last year (I also have 1 other, as yet unidentified arrear in the last 12 months, despite have fully reviewed my credit reports - i.e. 3 total).

Nonetheless there is much at stake, including a sizeable chunk of my partner's equity and the potential for the vendor to impose fees as a result of the delay to completion while we scratch around for another mortgage. I believe it is possible that our solicitor could trigger a random audit/credit search when he applies for the money from the lender (although this is very rare).

I would be grateful if anyone in the know could give me any advice on this.

kingstreet

Not much else to say.

You could be subject to a random audit, but the odds are that you won't.

Let_Us_See

I agree with Kingstreet. You summary is correct and I hope all goes well.