Mortgage with 1 satisfied default

jagger86

Hi all - just posted in the credit file thread also about the issue of the default.

(it is for a payday loan we never had, QuickQuid / Pounds to Pocket fraud team are supposed to be dealing with it, but they aren't responding!)

So there is a default on my partners credit file for this loan he never had and the default is showing as satisfied (loan amount £1,600 for 1 year) Default date September 2013.

We are currently trying to buy a house, the mortgage advisor applied with Halifax and it was passed to the underwriters who said no. They said because there is nothing on the credit file to show the loan was fraud. We can't get anything in writing from QuickQuid cos they are not responding. When we call they just say you need to speak to the Theft & Fraud team but they don't take incoming calls.

Anyone know how we can get a lender to consider our application in light of all this?

We are putting down 10% deposit and this is the only default between us, my credit is fine.

Thanks

ACG

I would put your efforts in to trying to get this resolved rather than trying to get a mortgage. You may find this very difficult to overcome otherwise as it is pretty recent.

Is the default on all 3 credit reports? If your current broker has not asked to see your credit reports - go and find another.

jagger86

We've only got experian at the minute.

Tried to do Equifax but they want us to send photo ID or letter with home address on to prove its him and that he lives here.

amnblog

Your broker does not know what he/she is doing if they did not check your file before putting it to Halifax.


If this default is not your fault you need to get it removed from the file before you do anything else.

ACG

Its worth doing.
As it stands, I would say your going to need 15% and then your going to be paying rates circa 5.5-6.5%.

If you have to hop 10 miles down the street in a pink tutu to get it removed its probably worth doing.

Dont be lazy, do what needs to be done. 1 day of getting stressed, annoyed, banging your head on the wall and threatening to throttle someone is probably worth doing as its going to be the difference between getting a mortgage with 10% or needed 15% and then a 4% rate or 6%.

Basically, if you cant be ...... putting the effort in now, its either going to prevent you getting a mortgage or result in you paying through the nose for it - either way its not a great outcome.

jagger86

We are putting the effort in believe me but this loan company are absolutely ridiculous! The fraud team don't take direct calls so had to wait for a call back which finally happened Friday (we missed the call but called the number back so have a direct line now) and they said if we pay £1000 they will remove it there and then. Obviously we said no as haven't had the loan and asked where the hell they are proposing they paid this loan to..awaiting call back from supervisor now. Also they are in America so we are buzzing for the phone bill!

Hoping it can be removed soon and we've been honest with the vendors about the situation and they are prepared to wait.

Also wrote to the local MP who has contacted the company along with the financial ombudsman who have contacted them so just praying it gets resolved quickly but it's already been 2 weeks!

The mortgage advisor knew about default but said he would try to underwrite it with them and they only do a soft search.

ACG

Loan company... governed by the FCA I assume?

Put in a complaint with the threat of taking it to the financial ombudsman if not resolved within 7 working days. Theoretically they have 4 weeks to resolve a complaint but they will not want it going to the ombudsman.

You need to complain to the company before going to the ombudsman.

jagger86

update -

So we have finally just managed to log onto the equifax credit report (account was disabled had to send proof of address in)
The loan does appear on there but it does not say default. Just shows a Q in grey next to it - Query Outstanding.

What does this mean please? Called mortgage advisor but I suspect he's finished for the day...

jagger86

The Ombudsman have already opened a complaint without waiting. They've sent us confirmation in writing...

Thrugelmir

jagger86 wrote: »

The loan does appear on there but it does not say default. Just shows a Q in grey next to it - Query Outstanding.

What does this mean please? Called mortgage advisor but I suspect he's finished for the day...

Perhaps investigations are under way.

Thorough checks will have to be performed. Not simply a question of taking your word unfortunately.

jagger86

Oh so it will still get flagged up on mortgage application.

Still waiting for loan company to respond again. Honestly even if we wanted to pay this damn loan we couldn't get through!!