Mortgage in principle agreed but mortgage was declines on application

Feelo29

Hi all

I hope you will be able to help me out. We got a mortgage on principle and our offer on a house that we loved got accepted.

On submitting the full application, it was declined based on a very old account I defaulted on as an student but which I also paid in full 10 years ago.

This doesn't even appear in any of my credit reports.

My current account is with the same bank and so is our savings. Since being in full time work after I graduated from uni I've never been in my overdraft nor missed any payments.

Do you think it's worth appealing this decision to look at our recent history and the fact that I did pay the amount in full and closed the account?

Many thanks

alchemist.1

No. Why did you apply to the same bank as the old default?

Apply somewhere else not part of the same banking group.

Thrugelmir

Feelo29 wrote: »

Do you think it's worth appealing this decision to look at our recent history and the fact that I did pay the amount in full and closed the account?

The lender will have a set internal policy. Better off applying elsewhere.

amnblog

Classic way to fall over post decision in principle. Applying to a Lender holding a default history from you >6 years old.

Bennyg82

Thrugelmir wrote: »

The lender will have a set internal policy. Better off applying elsewhere.

I'm glad I have read this. Despite getting a AIP from Halifax yesterday, today I got refused a savings account from HSBC (I have my mortgage and 2 current accounts with them) and it made me doubt the AIP. Although hopefully it is more likely it is to do with a default loan and that was partially settled a few years ago.

I want to change everything away form HSBC, I've been with them for 20 years and they are as impersonal as they are unhelpful. I guess I am best to leave accounts as they are until after mortgage application is approved.

Thanks

David_White

Feelo29 wrote: »

Hi all

I hope you will be able to help me out. We got a mortgage on principle and our offer on a house that we loved got accepted.

On submitting the full application, it was declined based on a very old account I defaulted on as an student but which I also paid in full 10 years ago.

This doesn't even appear in any of my credit reports.

My current account is with the same bank and so is our savings. Since being in full time work after I graduated from uni I've never been in my overdraft nor missed any payments.

Do you think it's worth appealing this decision to look at our recent history and the fact that I did pay the amount in full and closed the account?

Many thanks

Natwest by any chance?

Don't lose hope, there will be another lender for you.

celly5460

This is very useful.


I'm under offer with a mortgage offer from Aldermore but I'm hoping to get a better rate before completion (estimated end of August).


I had a 5 year old default with Halifax however, they have kindly removed it from my credit file. Should I apply for a mortgage with them? I also had a Barclaycard CC which is registered as delinquent as of July 2014 so this is a definite no no.


At present, I have three cards Vanquis £3000 no balance, Barclaycard £1150 no balance and Halifax £3000 with a £2890 balance. I'm paying off a £2500 loan (£1800 left) from Zopa this month so the only debt I should have left is the £2890 balance. All these things will take a while to take affect on my credit file - would you still recommend applying for a high street lender, even though they've removed the default and given me a new card (in both cases).


My credit rating is being affected by applying for a balance transfer card £2890, a cancelled sofa order (after my offer was accepted) and the delinquent card. It was all in desperation to reduce my debt. I stupidly placed an order for a sofa which is now been cancelled but it still appears on my credit file. I had to transfer the balance because the interest was very high.


Your advice would be greatly appreciated. As you've probably guessed, I'm a first time buyer.

Sashisg

Are companies allowed to retain this kind of data for this long? Doesn't the DPA state that information can only be held for as long as it is required, unless subject to regulation?

celly5460

Credit information (especially adverse) stays on your file for 6 years. It can be disputed if it is incorrect and later removed.