Lenders error is stopping me get a mortgage!

nikkijw_2

Hi, any help would be amazing. We paid off our mortgage in January, and are now moving and applying for a new mortgage. We are being refused because in March 2012 we were late with 1 payment. This was the error of our previous mortgage lenders. We had set up a payment plan with them which they cancelled 1 month early, and we were unaware that the payment hadn't been made. I have spoken to the lenders who say they will look into it to see if they can take the red mark off my report, and I have messaged Equifax. Is there anything I can do to move this faster??? We are in the process of selling our house and it's now looking like we will be homeless soon!

Crashandburn

You seem to have covered most options but how competitive are your previous lender's deals at the moment? Is it worth speaking to them about a new mortgage on the basis they seem to part of the current problem.

Credit files can take up to 10 days to updated with things like this so it is going to cause some delays.

Sorry there is no quick fix.

nikkijw_2

My previous lenders were Bradford & Bingley - who don't offer new mortgages anymore Thanks for the reply though. If you think of anything else please let me know, thank you!

Dave_Ham

Not that you should be expected to take a lesser product based upon an error from your previous lender, although if you get stuck there are highstreet lenders that are more flexible on one late payment than others.

Personal opinion is that typically this will take longer than 10 days to affect the credit file, unless you have spoken to someone unusually senior when you called up.

All the best

kingstreet

Are you sure it's just this one payment?

If you had a "payment plan" is that the issue, rather than the one-off?

Most lenders still use the old "more than one month, on more than one occasion" to describe mortgage arrears.

Crashandburn

Who have you tried with so far and what loan to value?

nikkijw_2

Oh...it's a complicated one! We are using a guarantor (as my partner has no proof of earnings = just gone self employed) who is 60, so that limits us to a 10 year mortgage. Because it's 10 years we are having to go interest only as we can't afford the payments otherwise. After 3 years the plan is to move to a 25 year repayment mortgage. We have £140,000 deposit, and we want to borrow £87,000. I'm on a low income. The guarantor has a pension of £20,000 per year.

kingstreet

Interest-only won't (shouldn't) answer your affordability problems because the lender will assess the case based on your ability to afford the mortgage on a repayment basis. This will be made worse by the shorter term.

nikkijw_2

Hmm...? We chose interest only as we wouldn't be able to pay the full amount over 10 years, the monthly amounts are well too high for us. We can easily pay it over 25.

Dave_Ham

You are correct, not straightforward at all.

Without the details, unfair to speculate although there are lenders that go past 70 and some way past 70.

Additionally, have you seen how this payment has been marked on Experian, Equifax and Call Credit or just one of them?

If only one, would get the others.

Loads of other questions which may provide alternative answers which may look like better solutions.

How long as OH been self employed?

Its hard on a public forum to give an informed opinion, but I would expect the questions above to have already been raised by your broker/advisor/IFA

All the best

Crashandburn

nikkijw wrote: »

Hmm...? We chose interest only as we wouldn't be able to pay the full amount over 10 years, the monthly amounts are well too high for us. We can easily pay it over 25.

Lenders will assess the Interest Only mortgage on the basis its a capital and interest mortgage over 25 years and not 10 years. So on this basis, you should fit within the criteria.

Issue still remains being the credit file.

Your choice of lenders is limited due to the interest only route and no repayment vehicle.