First time buyer - confusion over defaults, DIP etc.

houseownerwannabe_2

Hi

I hope someone can help me. My partner and I recently went for a DIP with Barclays which came back as a provisional acceptance. The adviser said to go ahead with paying a holding deposit for a new build and the appointment was booked to do the full mortgage app. The adviser was sick on the day and a colleague saw us instead and said that the DIP had been hard declined but an overwrite code was on as we had disputed something on our credit file which has now been rectified and this meant we could still put a full app in. However he says that although the default in question was registered in 2010, as it wasn't settled until 2015 it showed as a default every month and so that means we are outside lending policy as it is more than 3 late payments within a 2 year period. I'm confused as to why our original adviser thought it would be ok but this one doesn't? He said in his opinion, if we go ahead we will be declined and then have a mark on our credit files, so I decided not to go ahead.

Is there anyone else we could go to that would consider us? My partner has 4 defaults in total. All settled and all registered over five years ago. I'm so confused about all of this as neither of us has had a mortgage before.

Any help would be greatly appreciated.

David_White

Sounds like you've put a notice of correction on your credit file. This will cause every DIP with Woolwich to "provisionally accept" regardless as they're obliged to check the file before making a real decision.

Just my opinion but I think a notice of correction can do more harm than good.

By the way you've been handled I wouldn't have any faith in the advisers you've spoken to already and therefore would engage a broker that is experienced in adverse cases.

Woolwich may well be your best bet, but the devil will be in the detail.

MortgageMamma

Hi there

this is quite typical of bank advisers they are such chancers in my opinion. You need proper advice from a whole of market mortgage adviser who can look at all lenders at once for you. Adverse mortgages are not impossible to get but you might require a slightly larger deposit. Its crucial you get advice urgently as you've paid a holding deposit to the property developers.

In the meantime, take a bit of advice as to how barlcays have handled your case. If you have been upfront with them about your credit status they should have known it wouldn't fit criteria and they have left you in a situation where your holding deposits at risk.

Thrugelmir

MortgageMamma wrote: »

this is quite typical of bank advisers they are such chancers in my opinion. You need proper advice from a whole of market mortgage adviser who can look at all lenders at once for you. Adverse mortgages are not impossible to get but you might require a slightly larger deposit. Its crucial you get advice urgently as you've paid a holding deposit to the property developers.

In the meantime, take a bit of advice as to how barlcays have handled your case. If you have been upfront with them about your credit status they should have known it wouldn't fit criteria and they have left you in a situation where your holding deposits at risk.

Brokers posting should reflect this in their signatures to accord with forum rules.

houseownerwannabe_2

Thank you all so much for replying. I just feel so deflated at the minute. I've got an independent adviser calling me back today so hopefully they can help us but if not it looks like we will have to put off our purchase until next year and then start all over again. I'm going to put a complaint in about conflicting advice and see if I can be compensated for the £100 holding deposit as I'd never have gone ahead if the adviser hadn't said it was ok.

Can anyone clarify about the credit files... The adviser said that even when my partners defaults reach the six year mark and drop off his report, creditors can still see it and we still have to declare any default, late payments etc even after 6 years. I can understand having to declare stuff like bankruptcy/DROs and IVAs but surely not old defaults if they've dropped off?

Thanks again

MortgageMamma

Thrugelmir wrote: »

Brokers posting should reflect this in their signatures to accord with forum rules.

Thanks for the tip, I'm already aware of it I have been using this site for years.

At the moment, I am not a broker, as I have not worked in the industry since 2008. I have spent that last 6 months "catching up" and at present I am in the process of regaining my permissions and only when I have those permissions am I able to describe myself legally as a broker.

I have inboxed the MSE forum team last week to explain this, and they have not replied so I expect they are ok with it.

I hope that clears the matter up

betmunch

houseownerwannabe wrote: »

Can anyone clarify about the credit files... The adviser said that even when my partners defaults reach the six year mark and drop off his report, creditors can still see it and we still have to declare any default, late payments etc even after 6 years. I can understand having to declare stuff like bankruptcy/DROs and IVAs but surely not old defaults if they've dropped off?

Thanks again

You done have to declare them, you have to answer honestly.


So if the lender asks in the last six year have you....... you don't have to tell them


If the lender asks have you ever......... you do have to declare it


Also, just because you tell them you had a default 6 years ago doesn't mean it will automatically decline with many lenders.

MortgageMamma

houseownerwannabe wrote: »

Thank you all so much for replying. I just feel so deflated at the minute. I've got an independent adviser calling me back today so hopefully they can help us but if not it looks like we will have to put off our purchase until next year and then start all over again. I'm going to put a complaint in about conflicting advice and see if I can be compensated for the £100 holding deposit as I'd never have gone ahead if the adviser hadn't said it was ok.

Can anyone clarify about the credit files... The adviser said that even when my partners defaults reach the six year mark and drop off his report, creditors can still see it and we still have to declare any default, late payments etc even after 6 years. I can understand having to declare stuff like bankruptcy/DROs and IVAs but surely not old defaults if they've dropped off?

Thanks again

Let us know how you get on with your adviser. Regarding the default, as far as I am aware I thought once they were gone off your file they were gone and what you see on your credit report is what a lender will see. Double check with your advisor though, I hope everything works out for you, buying houses is never without a bit of stress so try not to worry and to take everything in your stride x

houseownerwannabe_2

I think its been the most stressful thing I've ever done, and I'm saying that whilst halfway through a nursing degree which I thought was stressful but its nothing compared to this! Thank you again for your replies, it really helps as we're totally lost!