Buying New House - Mortgage Advice

Talib222

Please help!!!!!

I applied for a mortgage on Friday following the agreement to purchase a new property. I had a mortgage agreed with Santander a couple of months ago so I just made the call to go ahead. However My financial adviser called me to advise that my mortgage application had been rejected due to issues on my credit file. I do not have any bad credit so I was shocked to receive this news. Upon investigation with a credit agency bad credit of £4.00 was highlighted on a Very Account due to missed payments.


Unfortunately I was unaware that I had an outstanding balance on my Very account as I only used the account once and it was inactive. I opened the account in January, ordered and returned items and did not use this facility again. Had I been aware that I owed £4.00 I would have paid the balance immediately. I have now paid the outstanding debt and closed the account.


However the bad credit remains on my file for 6 years and I am unable to complete my mortgage application. As this debt is for such a small amount I am hoping that Very will remove the default from my credit file so I can go ahead with purchasing my new house as planned. I do not have any other bad debt on my credit file and this £4.00 debt could have a serious impact on my life.

I am trying to resolve the bad credit issue however I need to provide the estate agents with proof of funding tomorrow. The mortgage that we had rejected due to the credit issues above was with Santander. However I have a mortgage just under my name for my current property with RBS. I have had this mortgage for over five years with a very good credit history. My question is would I have a better chance of agreeing the new mortgage with my current provider under the current circumstances due to my good history or am I likely just to have my request to add my husband and mortgage value increased declined?

Any help would be very much appreciated.

kingstreet

Don't know, it would depend on your credit score with your current lender when you apply.

Get your other credit files from Equifax and Call Credit and see if the default is visible on them.

If it isn't, get a broker to find you a lender which sources data from the one showing you in the best light.

Malmo

Seems to be a common issue with this retailer.
Were you issued with a default notice by Very? If they are covered by the Consumer Credit Act, then they would have to notify you of the intention to default unless you settle the balance:

http://m.stepchange.org/debt-information/what-your-creditors-can-do/court-action/default-notices/

TBeckett100

I assume you got a refund on the goods and then forgot there was a delivery charge to pay. Seems petty.
I would ask them in view of the amount and circumstances to remove the adverse data

Talib222

TBeckett100 wrote: »

I assume you got a refund on the goods and then forgot there was a delivery charge to pay. Seems petty.
I would ask them in view of the amount and circumstances to remove the adverse data

That is exactly what happened. I admit that I am in the wrong. I used the account once but I am paying the price now for this oversight on te delivery charge.

Talib222

I have just found an article relating to Consumer Contracts Regulations on Which stating that by law the original cost of outbound postage should be refunded by the seller.

What should you get back?

The original cost of the outbound postage to you should always be refunded by the seller.
The seller's terms and conditions or returns policy should state who pays the cost of returning the item.
If they don't state this, then the seller has to cover the cost.
In this case, you're entitled to a refund of the total amount you paid, including costs to ship the item to you, and the fee to return the item. No admin or restocking fees should be charged.

libf

Talib222 wrote: »

I have just found an article relating to Consumer Contracts Regulations on Which stating that by law the original cost of outbound postage should be refunded by the seller.

What should you get back?

The original cost of the outbound postage to you should always be refunded by the seller.
The seller's terms and conditions or returns policy should state who pays the cost of returning the item.
If they don't state this, then the seller has to cover the cost.
In this case, you're entitled to a refund of the total amount you paid, including costs to ship the item to you, and the fee to return the item. No admin or restocking fees should be charged.

That's for a cancellation rather than a return though, isn't it? For returns you bare the cost of postage both ways with Very.

TravelBugHappy

Just to clarify - you was entitled to a refund of your delivery charge if

A) you returned the whole order
You wrote to he lender and requested a refund within 7 days of receipt of goods

You need to speak to the credit reference team - email C/S and they will forward your email on.

They will remove it if the above applies to you.

Talib222

Success!!!!! :j:j:j:j:j:j

Shop Direct escalated my complaint to the Executive Team. My complaint was reviewed and a solution provided within the same day. All late payment markers will be removed from my file within 28 days and I can then go ahead with my mortgage as planned. I am soooooooooo happy! I just hope my estate agents understand my situation as I am still unable to provide proof of funding until my credit files have been updated.