Share the pain - BEWARE new rules

Size66

im willing to share my frustration ; here is the story ; i want to refurbish my kitchen so need about £30k, to fund this i decided to relaese some equity from an unincumbered holiday home that is worth about £180k - this is NOT a holiday let type thing - its our summer weekend by the sea place.
Our financial advisor ( form filler ) pointed us to Halifax BS for this exercise. we thought this would be straight forward - our joint annual income is about £125k and our outgoings are about £2.5k the additional mrtgage cost would be about £100 per month - guess what - we got knocked back on the basis of a red mark on my credit report __( a few years back i cancelled a direct debit of £9 per month to virgin mobile who then claimed i had missed 3 payments as i didnt give them 3 months notice of termination on a phone that i nevr used once for call or text ( i beileve it was mis sold to me (( another story )) Point is someone somewhere decided that on the basis of a dodgy mobile phone contract i wasnt good for the loan :rotfl:Crazy world, check your records this is nearly as bad as my friend who was quiestioned about his cash point useage at weekends - !!!!!!!!!!

betmunch

Hang on a mo, you were turned down for a loan due to your credit report showing you have failed to pay a debt.

I think you will find that credit checking people has always occurred and this isnt an issue with the new rules.

If you think the missed payments are incorrect take it up with Virgin Mobile, have them removed, and re-apply.

But dont blame a lender for not lending to someone without a good credit record

GingerBob_3

Size66 wrote: »

im willing to share my frustration ; here is the story ; i want to refurbish my kitchen so need about £30k, to fund this i decided to relaese some equity from an unincumbered holiday home that is worth about £180k - this is NOT a holiday let type thing - its our summer weekend by the sea place.
Our financial advisor ( form filler ) pointed us to Halifax BS for this exercise. we thought this would be straight forward - our joint annual income is about £125k and our outgoings are about £2.5k the additional mrtgage cost would be about £100 per month - guess what - we got knocked back on the basis of a red mark on my credit report __( a few years back i cancelled a direct debit of £9 per month to virgin mobile who then claimed i had missed 3 payments as i didnt give them 3 months notice of termination on a phone that i nevr used once for call or text ( i beileve it was mis sold to me (( another story )) Point is someone somewhere decided that on the basis of a dodgy mobile phone contract i wasnt good for the loan :rotfl:Crazy world, check your records this is nearly as bad as my friend who was quiestioned about his cash point useage at weekends - !!!!!!!!!!

Yep, as said elsewhere, the whole CRA industry is not fit for purpose. If you can get declined for a major financial transaction based on the say-so of a company like Virgin, then I rest my case.

CLAPTON

Size66 wrote: »

im willing to share my frustration ; here is the story ; i want to refurbish my kitchen so need about £30k, to fund this i decided to relaese some equity from an unincumbered holiday home that is worth about £180k - this is NOT a holiday let type thing - its our summer weekend by the sea place.
Our financial advisor ( form filler ) pointed us to Halifax BS for this exercise. we thought this would be straight forward - our joint annual income is about £125k and our outgoings are about £2.5k the additional mrtgage cost would be about £100 per month - guess what - we got knocked back on the basis of a red mark on my credit report __( a few years back i cancelled a direct debit of £9 per month to virgin mobile who then claimed i had missed 3 payments as i didnt give them 3 months notice of termination on a phone that i nevr used once for call or text ( i beileve it was mis sold to me (( another story )) Point is someone somewhere decided that on the basis of a dodgy mobile phone contract i wasnt good for the loan :rotfl:Crazy world, check your records this is nearly as bad as my friend who was quiestioned about his cash point useage at weekends - !!!!!!!!!!

with an income of 125k and outgoings of only 2.5k (pm presumably) why do you need a loan atall?

dunstonh

guess what - we got knocked back on the basis of a red mark on my credit report __( a few years back i cancelled a direct debit of £9 per month to virgin mobile who then claimed i had missed 3 payments as i didnt give them 3 months notice of termination on a phone that i nevr used once for call or text

This indicates poor financial management As much as you poor scorn on this, it does work against you and you got it through your own fault.

£125k earnings with £2.5k outgoings suggests you would have some fair savings built up. Is that the case? If not, that could work against you as it suggests your outgoings are not what you say they are.

Part of the requirements of the MMR is to return to sensible lending. It will hopefully see a return to people being responsible with their finances. It is not that many years ago that the idea of getting a default would be considered awful. We need to return to those times.

essex.cyclist

On this point, what would you have seen on the Experian report that would have allowed you to prevent this happening?


What I'm getting at is; is there a stage in between where the debt is 'live' but you may not know about it, and eventually it ends up on your report?


Or is it always there?