Mortgage Application Rejected due to late Orange bill payment. Help please

Deeman13

Hi All

First post on here:

My wife and I have recently been attempting to remortgage our home. We are going through L&C and the service has been good so far.

I am a high income earner with really good credit; never missed any sort of payment; wife is self employed and has also has exemplary credit… up till now

Long story but in short; wife was moving from Orange to Vodafone and final Orange bill was incorrect so liaised with Orange and asked them to amend this bill and then she would pay. This took place in early October. Orange eventually sent an amended bill in mid Dec and this was paid by cheque within the week.

In the meantime applied for a remortgage and shock horror was rejected by TSB due to credit file issues. Checked on Noddle and late payment is on my wife's file effective from 9 Dec.

Ok knowing what we know; we would have paid the bill upfront and then tried to claim back any overpayment later from Orange and notwithstanding Orange took 2 months to send an amended bill; what are our chances of getting a decent remortgage rate or in fact any mortgage rate given that the late payment is so recent?; we were previously looking at around 2.6% for a 5 year fixed rate.

Will continue with L&C when they return from Xmas but I guess just wanted some reassurance/benefit of experience from those who are far more knowledgeable than us.

Many thanks

ACG

You need to look at the reports the lenders are using. It could just be the late mobile phone payment, but there could be more you are not aware of. First port should be to get your other reports. You say L&C are giving a good service, but in my mind they should be getting your credit reports from the outset to avoid things like this.

I would be surprised is one late mobile phone payment prevents you getting a Mortgage at decent rates. How much deposit are you putting down (as a percentage of the purchase price)?

Deeman13

Thanks ACG

Good service as in speed, responsiveness but yes you do make a very valid point re: LCG and will put this to my broker when they return as to why they didn't flag this up prior to submit our application.

I only have my wife's Noddle report and have requested other credit reports also but yes I believe it is only this one late payment that is on question

We will be remortgaging at 75% LTV.

Are you saying that other mortgage providers will 'overlook' this even though it is recent; i.e. Dec 15?

ACG

I know there are lenders where the late payment will fit critera. It still has to pass the credit score but with a 25% deposit, I would be surprised if it can not be overcome.

Deeman13

Great. Many thanks

Lemonsqueezer78

Just to add, have you approached Orange with a complaint letter and a request to remove this late payment indicator from your file? If there was a genuine misunderstanding over the bill - and this really was a one-off (i,e, they can see you were not a serial late payer) - they may well agree to do this if you make a well-worded, clear (and polite) letter explaining why you didn't pay a bill you thought was being "corrected".

amnblog

There are lenders that ignore issues on mobile contracts.

L & C have made a basic mistake here.

Engage a decent broker and you will be sorted same day.

Deeman13

@ Lemon squeezer - Yes put together what I thought was a compelling email to Orange asking them to consider this as a misunderstanding. They ignored the points I raised so I have asked for this o be escalated. Let's see.


@Amnblog - Have thought about this further and am looking for a new broker. Places to look? Unbiased.co.uk? And other places I should be looking?

Thrugelmir

Deeman13 wrote: »

never missed any sort of payment;

What you owe and your utilisation of credit may have a bearing on the decision though.

Deeman13

Minimal debt owed (a few £k at any point in time) and therefore low utilisation so not an issue

amnblog

Deeman13 wrote: »

@Amnblog - Have thought about this further and am looking for a new broker. Places to look? Unbiased.co.uk? And other places I should be looking?

I became aware of Bark.com yesterday - have not had any feedback from it.