Mortgage Application failed!

bcm3

Hi, my partner and farther in law have just come back from applying for a full Mortgage Application. After 2 hours it came back to say failed.

The Mortgage Advisor and the Manger sat with them and went through Noddle to see both of their accounts.

Partners is fine but father in laws was a 1 status. Could see there was outstanding debt from one company from 2011. (We all know this is strange because he doesn't have any credit he even paid his only mortgage in 5 years just so he didn't owe any money)

So looking at the debt he realised it could be his other son ( with the same name) so he called the person he owed money to and they advised it was the father in laws dob but at his other sons house) so this confirms that his other son has taken some credit out in his name!!!

The mortgage advisor suggested a few things...

He said he would call them tomorrow to go through with a few things because the father in law has enough money in the bank to pay for the house outright and it's only the debt he could possibly speak with the underwriters and have it referred. He suggested if he paid them he could prove it's paid etc or he could dispute it.

Just looking for some advice really please.

1. Would Santander really change their mind if his dad was to pay it (for an easy quick solution because we have already paid deposit on solicitor and had an offer accepted etc)
2. If he doesn't pay it and deputed it obviously this would take ages but what would Santander need to prove it wasn't him?

Obviously the father in law is very angry at his other son and can't belive he has done this but it's possible because they had the same name and once lived in the same property that the credit reference agency could have got the wrong account??

Thanks in advance and sorry for the long message.

nubbins

The first mortgage I went for was Santander through my broker, there is a little blemish on my account from 4 years ago and they refused it on that. Since then I have offers from Halifax and Clydesdale and just completed a remortgage using Nationwide. The moral of the story is get yourself a good broker and avoid Santander. For the record I have never had to go and see my broker nor have I ever had to sit in front of the lender going through Noddle!!

bcm3

Hi nubbins thanks for the reply.

So there is hope for us then. There could be another lender that would lend to them?

It seems silly when the debt isn't his. He's so upset about it and feels he has let his son down.

I may book to speak with a broker then and see. Would it be a good idea to sign up with one of the agencies to show the broker the debt?

Everything seemed hopeful when they received the MIP.

ruggedtoast

Noddle?

What is Noddle?

Kynthia

I would suggest seeing a local independent broker with a copy of their credit reports from all three agencies (don't sign up to monthly reports just get the £2 statutory report). This way the broker will know the credit issues and know who is likely to lend to them as different lenders have different criteria. Also if the issue doesn't show on all three reports then the broker may know which lender uses that agency and therefore won't see the unpaid debt.



Then he should deal with the error on his report. It's possible it's a mix up if he has the same name as his son rather than fraud. So he could contact the company involved and see if the original paperwork can be provided to him. Then contact his son and see if it can be worked out. Once it is resolved ask the company to update your FIL's credit report or ask the agency to correct the data.

agrinnall

ruggedtoast wrote: »

Noddle?

What is Noddle?

I hope that's not really a serious question from somebody with your experience on the forums. But just in case somebody else wants to know:

https://www.noddle.co.uk/

kingstreet

FWIW, Noddle is the online presence of Call Credit, just as Credit Expert is that of Experian.

bcm3

Kynthia wrote: »

So he could contact the company involved and see if the original paperwork can be provided to him. Then contact his son and see if it can be worked out. Once it is resolved ask the company to update your FIL's credit report or ask the agency to correct the data.

The Santander MA did suggest maybe if he paid it they would change it to paid but would this really help and wouldn't it take to long? But he did say he could refer it to the underwriters to actually look at his case with the evidence he paid it. I don't see why he should it's £700 and like I've said it's his sons debt?!!

Either way we feel torn on what to do...

Go with a broker now and start new like you have all suggested or continue with the Santander underwriting bit?

nubbins

If I was you, I would be on the phone getting a broker lined up because with Santander you might get the ol "computer says no".

Bonfire_Bride

He needs to report his son for fraud and get it completely removed from his credit file! Or, he would need to somehow prove to the creditor that it was not him who took out the agreement!

The credit company also broke several DPA rules by disclosing the debt!

Tricky one! If he pays, then he is accepting liability! good Luck!

Annisele

I wouldn't go reporting the son for fraud quite yet. It's still possible there's a mix up, or at least an innocent explanation - that doesn't sound very likely to me, but it is possible. Unless relations with other son have completely broken down, I'd ask him first.

If the debt is in FiL's name, then the credit card company didn't breach any rules by disclosing to FiL - so far as they know, FiL is their customer.

As others have said, FiL should get hold of his credit reports from all three credit reference agencies (Experian, Equifax, and Call Credit). Generally that's a good idea before applying for a mortgage - but in this case, FiL will see if there's any other unexpected credit floating around.