Can I Re Mortgage?

Vickyb78

In 2010 I got divorced. I had to apply for Income support and they paid part of the interest on my Mortgage. There was a remaining amount to pay each month which the Income support did not cover. I set up the direct debit for this amount. The mortgage company who I am with gave me the incorrect figure for the direct debit. Therefore it resulted in a default on the mortgage which I was unaware of for approxamately 6 months. I have made the maximum overpayments each year. I am now in a position to take the mortgage on in my own name. Please can anyone tell me the likelyhood that this will prevent me from remortgaging?

Sazzie23

Hi Vicky

I'm not a regular on the mortgage board but I do know that direct debits are controlled by the company requesting the payment, so if they failed to collect properly you should not have a default on your account. Have you checked noddle or equifax to see if there is a default listed on your credit file. If there is it may be worth making a complaint to the company requesting a correction, followed by a complaint to FoS if they don't sort it out.

If you are remortgaging with the same company it probably won't affect you, but if wanting to move mortgage elsewhere it will if a default shows.

amnblog

There is no reason to suggest that this situation will not affect a re-mortgage with your current lender - it may well do so.


Once again, a case for a mortgage broker as you will probably have a limited choice of lenders.

Edi81

When you say forest debit do you mean standing order or direct transfer?

Thrugelmir

Vickyb78 wrote: »

In 2010 I got divorced. I had to apply for Income support and they paid part of the interest on my Mortgage. There was a remaining amount to pay each month which the Income support did not cover. I set up the direct debit for this amount. The mortgage company who I am with gave me the incorrect figure for the direct debit. Therefore it resulted in a default on the mortgage which I was unaware of for approxamately 6 months. I have made the maximum overpayments each year. I am now in a position to take the mortgage on in my own name. Please can anyone tell me the likelyhood that this will prevent me from remortgaging?

When you say default. Precisely what happened.