False missed payment on credit file, lender declined mortgage

steph_188

hi all,

thanks for reading this post,

i am buying a new house with my fiance. i am selling a property and the LTV is roughly 65% on the new house. we applied for a mortgage with leeds building society purely because it was a great deal on a 5year fixed rate.

when we applied for the mortgage the first time in January, the lender declined our application because we had a missed payment (monthly payment to Barclaycard) on my fiance's credit file. we knew he had not missed a payment so we checked with Barclaycard and they acknowledged it was their error, agreed to remove the black mark from his credit file and sent us a letter confirming it was their error.

we waited for the file to update and applied again last week for the same mortgage with the same rate etc. During the process our mortgage broker was contacted by Leeds BS and told they still had the old copy of the equifax report showing the missed payment. He forwarded them on a copy of the latest equifax report, along with the letter of apology from Barclaycard, but we have been told today that their records still show a missed payment therefore they declined the mortgage again.

This is infuriating seeing as the only mark against us is the missed payment. our credit file doesn't have a mark against, we do not have credit cards or debt, and we earn a combined salary that can more than cover the cost of the mortgage. the new mortgage rate we have applied for will mean we pay about £30 more a month, which might not seem alot but over the 5 year term, equates to £1,800.

i feel we should be seeking compensation from Barclaycard for the hassle and stress this has caused, if not to cover the cost of the higher mortgage cost over the 5 years. We have also been told that we could lose the house if we do not get this tied up quickly and are able to proceed.

please can someone offer some advice?

thanks!:(

Candyapple

Yes, you need to speak to a solicitor regarding seeking compensation from Barclaycard for the initial mistake and additional cost incurred due to their mistake.

Have you yourself checked your credit files at Experian, Equifax and Call Credit?

ClearScore (Equifax) is free: https://www.clearscore.com
Noddle (Call Credit) is free: https://www.noddle.co.uk
You need only pay £2 to Experian for a copy of your report

When you say you waited for the file to update, does that mean your broker has a fresh copy of your partner's file which shows no late payment marker? If so, why are Leeds BS rejecting you? Or did you not bother to obtain a fresh copy and hoped that Barclaycard would stick by their word?

In my experience Barclaycard are one of the slowest companies to update credit files and generally only update every 2 months. I've just had a copy of my latest credit report and my Barclaycard is still showing December 2015's balance.

steph_188

Thanks for the reply candyapple,

Yes they were sent the correct, most recent report which had the false missed payment removed, but the underwriter has refused to accept it. We also checked the credit file with both Equifax and experian and both are up to date and accurate.

My brilliant mortgage broker got hold of the personal number for the BDM of the mortgage department and explained the situation and he said he will personally look at the case today, so here's hoping,

Thanks !

Candyapple

steph_188 wrote: »

Thanks for the reply candyapple,

Yes they were sent the correct, most recent report which had the false missed payment removed, but the underwriter has refused to accept it. We also checked the credit file with both Equifax and experian and both are up to date and accurate.

My brilliant mortgage broker got hold of the personal number for the BDM of the mortgage department and explained the situation and he said he will personally look at the case today, so here's hoping,

Thanks !

Seriously?! Make sure you put in a complaint to Leeds BS about this and also for them to remove any additional searches from your credit file regarding this.

So to summarise:

1. I would definitely seek compensation from Barclaycard for starting the mess in the first place and if it has caused you to get a higher rate than you would have, they need to compensate you for this also.

2. Complain to Leeds BS about the way you have been treated and hopefully you will also receive compensation from them too.

I hope everything works out for you, keep us updated