Mortgage refused due to error - quick steps

rich9876

Hi everyone,

I would really appreciate any advice or to hear about what happened in similar situations.

I am applying for a buy to let mortgage and heard today that my application with Santander had been turned down due to a bad credit check. I checked my credit file and the only problem was a missed payment from May for a mobile phone bill. This is a mistake by the phone company when my contract changed. I called them and they admitted this and are sending a letter to the credit reference agency to ask for the file to be corrected. My problem is that this apparently takes 60 days to clear a file, and by that time I will have lost my flat and stamp duty will be increased substantially.

Has anyone ever succeeded in presenting circumstances like this to Santander or another bank and getting them to reconsider?

Thanks so much for any advice. Obviously very very disappointed.

Richard

john1002

Are you sure that the late payment is the reason for the decline, if it is then yes speak to the underwriters and explain.

Have you spoke with santander and they have said this is the issue, also have you checked the credit file that the lender uses.

john

GingerBob_3

If this was a mistake and you suffer a loss as a result - e.g. loss of the house purchase, you might consider suing the phone company. There are precedents here.


Funny though; we are told time and again on this board that a single missed payment will have little or no effect on your ability to obtain credit. This would appear to be wrong. Even ONE missed mobile phone payment appears to be enough to get you blacklisted. What a rotten, nay putrid, system!

Thrugelmir

Be surprised if a single missed payment was the cause of the decline. There'll be other reasons why you've failed to meet the lenders criteria.

D_Finch

As a mortgage adviser check your credit file doesn't say the words "unsettled" or "arrangement" . If it does have either of those words that will be more likely to be why it's declined. I get lots of this with mobile phone companies. If it says "unsettled" that's a default and with the company I work for this would need to have been first registered at least 3 years and be settled (paid). If it's a mistake insist its removed from your credit file immediately by speaking to their "dedicated team and issue a letter saying it was put on your credit file in error.

rich9876

Thanks everyone. Using a broker who has been in touch with Santander and apparently there is no recourse. Has anyone actually spoken directly to an underwriter in a case like this? Unsure how I would do it

Thanks so much

Thrugelmir

Underwriters don't speak directly to the public at organisations such as Santander.

David_White

I would be surprised if your application was declined solely because of 1 missed payment.

Have you looked at all 3 versions of your credit file?