turned down for remortgage despite 160k equity

BreakfastTea18

Feeling the need to vent really....have to remortgage to buy out ex who us now due his charge of 40k. Have 50k with Halifax and house valued at 250k. I knew my credit report could be improved but thought the LTV would be enough to swing it. Affordability not an issu, just scrape through on income to borrow 92k.

Broker advised that due to defaults, 2 of which I wasn't aware of, mortgage declined. Broker also advised credit report (experian) states my current mortgage is in arrears with an arrangement to pay, which it absolutely isn't...I'm overpaying on my mortgage and have knocked 5 years off the the termand its been up to date for years.

Have now paid off all the defaults, about 2k in total but I'm worried about this historic arrangement to pay which was only for a few months and I had no idea it would be reported to credit reference agencies...basically ex stopped paying the mortgage when we split in 2009 and I had to make up a couple of months payments but did it over a few months...no idea it would have this effect 4 years later. How do I challenge this on my report ?

Is there any hope ever of getting even a small mortgage if I have to sell to release the equity ? I'd rather stay in my last very home but its looking impossible ...very despondent :-(

RickyC_IFSWP

Kimlisa1 wrote: »

Feeling the need to vent really....have to remortgage to buy out ex who us now due his charge of 40k. Have 50k with Halifax and house valued at 250k. I knew my credit report could be improved but thought the LTV would be enough to swing it. Affordability not an issu, just scrape through on income to borrow 92k.

Broker advised that due to defaults, 2 of which I wasn't aware of, mortgage declined. Broker also advised credit report (experian) states my current mortgage is in arrears with an arrangement to pay, which it absolutely isn't...I'm overpaying on my mortgage and have knocked 5 years off the the termand its been up to date for years.

Have now paid off all the defaults, about 2k in total but I'm worried about this historic arrangement to pay which was only for a few months and I had no idea it would be reported to credit reference agencies...basically ex stopped paying the mortgage when we split in 2009 and I had to make up a couple of months payments but did it over a few months...no idea it would have this effect 4 years later. How do I challenge this on my report ?

Is there any hope ever of getting even a small mortgage if I have to sell to release the equity ? I'd rather stay in my last very home but its looking impossible ...very despondent :-(

Unless I've misunderstood, if you have £50k with Halifax, why don't you simply use part of it to buy out your ex's £40k charge? Saves borrowing more.

GMS

Speak to a broker.

Get copies of your credit reports from Experian, Equifax and Call Credit. £2 statutory ones will be fine.

BreakfastTea18

RickyC_IFSWP wrote: »

Unless I've misunderstood, if you have £50k with Halifax, why don't you simply use part of it to buy out your ex's £40k charge? Saves borrowing more.

Sorry I don't understand....am in standard variable rate, need to raise another 40k but ex hasn't registered his charge on the property, I have to raise the funds to pay him off , get a new mortgage which will be in my name and not joint as it is currently.

Have approached Halifax and they are processing an internal remortgage but due to a notice of correction which I had put on about the defaulted joint bank account ( paid off today, £458.00) it has sent in to internal underwriters or whatever it is....

Now waiting for updated credit report at end of June but might not show until July :-( trying my best but under pressure as ex wants his dosh and off the mortgage. If he takes me to court he will get an order for sale forcing me to sell the house with no ongoing mortgage to put towards something else.

BreakfastTea18

GMS wrote: »

Speak to a broker.

Get copies of your credit reports from Experian, Equifax and Call Credit. £2 statutory ones will be fine.

Have all the credit reports, and have seen a broker....he has placed it with nationwide who seem to have read on experian I'm in mortgage arrears but I'm not...have told broker to apply elsewhere but he says not worth the risk. Have paid off defaults but will this be enough to raise score ?

BreakfastTea18

RickyC_IFSWP wrote: »

Unless I've misunderstood, if you have £50k with Halifax, why don't you simply use part of it to buy out your ex's £40k charge? Saves borrowing more.

I have a 50k mortgage, not savings, need to find another 40k

GMS

Kimlisa1 wrote: »

Have all the credit reports, and have seen a broker....he has placed it with nationwide who seem to have read on experian I'm in mortgage arrears but I'm not...have told broker to apply elsewhere but he says not worth the risk. Have paid off defaults but will this be enough to raise score ?

When were the defaults and for how much? Are they all satisfied?

BreakfastTea18

GMS wrote: »

When were the defaults and for how much? Are they all satisfied?

3 Defaults in 2010, £450, £1055 and £540, now all paid in full as of this week.

2 I didn't know about in 2009 (British gas, £139 and 45 for a final bill I know nothing about but registered as 2 defaults despite it being just the one utility account) querying these as no nothing about them but wondering if I should just pay them and query later

BreakfastTea18

British gas defaults only appear on experian, not the other 2 btw

GMS

Definitely speak to another broker.

Also get copies of your annual mortgage statements to prove the payments weren't in arrangement and/or arrears.

What income do you have?

RickyC_IFSWP

Kimlisa1 wrote: »

I have a 50k mortgage, not savings, need to find another 40k

Ah sorry, my bad.

The apparent number of defaults and mortgages arrears ring all the alarm bells for lenders. I was just about to ask if you've approached Halifax directly for a remortgage, and just saw your post that you have. I think this is your best bet at present so keep chasing the underwriters (every 2 days). All the best.