Account in arrears after reduced payment plan

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Hi

My girlfriend and I got rejected a mortgage today off Halifax (£101,000 with 10% deposit), we used a broker and he told me that it was my credit rating that was to blame. I was really bad with my finances at one point, but I've paid every debt on time for the last two years. My girlfriends search came out clean.

I created an online account with Equifax to try and see it anything was wrong with my credit file, and then I found it!

18 months ago I was really struggling with money so I approached all my creditors with a budget sheet and a reduced payment plan, all were accepted. After 11 months I could afford the full payments again.

I have two loans, one with Beneficial Finance and the other with Liverpool Victoria. On my credit report Liverpool Victoria claim that I am in arrears (which I am, because of the reduced payments) but have marked my credit report with "Account in Arrears" where as Beneficial Finance have marked each month as "Payment Made"

If Liverpool Victoria accepted my new payment plan, surely every payment should be marked as "Payment Made" and the amount in arrears should be added on to the end of the loan?

I received no letters off Liverpool Victoria about my arrears and no warning was made regarding this. I phoned Equifax and the pleasant woman on the phone said they should not have done this, so does my mortgage broker, but after speaking to 5 people (3 from Customer Satisfaction) they assured me that this is how all creditors operate in this situation. If that is the case, why has Beneficial Finance not done the same?

I've started a dispute on the Equifax support page but that's going take up to 28 days, and the builder wants to in the next two weeks if I want the house or not!

I have paid off the arrears today and I'm hoping that it will be included in Octobers credit report for round two of searches, when do creditors normally update their details with Equifax?

Sorry for all the questions but I really don't know what else to do!

Thanks

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Can anyone help with this please?

Thanks

TAG

Do you have any letters from Liverpool Victoria showing that they had accepted the payment plan? It might help to support your case with the mortgage company.

CLAPTON

Its really up to the creditor whether or not they put the arrears on your credit report. Its worth disputing the entry but in reality it is correct. The fact that the other one didn't do this is your good fortune.
In simple terms you are in arrears, so most creditors will quite reasonably not want to lend you any more money... Have you considered paying off the arears so at least your record will show you are now uptodate?

mrs_deadline

I just wanted to add, if you're looking to buy newbuild direct from a builder, there's absolutely no need to be rushed by them. Further down the line they won't have any qualms about delaying completion on your house! Obviously I don't know who you're dealing with but big developers rely on first-time buyers going along with their ultimatums, not haggling over the price, not doing local price comparisons, and so on.

Keep the builder waiting till YOU'RE ready. Take your time to clear your arrears, tidy up the credit record and get the best possible mortgage deal. Just let them know you can't commit until you're sure your figures add up. They get the message you're a canny buyer and not about to be pressured into hasty decisions or pay over-inflated prices.

A little patience now and you stand to save yourself thousands in mortgage and interest payments over the next 25 years.

Smile

TAG wrote: »

Do you have any letters from Liverpool Victoria showing that they had accepted the payment plan? It might help to support your case with the mortgage company.

I have all the letters and have given a copy to my broker.

Smile

CLAPTON wrote: »

Its really up to the creditor whether or not they put the arrears on your credit report. Its worth disputing the entry but in reality it is correct. The fact that the other one didn't do this is your good fortune.
In simple terms you are in arrears, so most creditors will quite reasonably not want to lend you any more money... Have you considered paying off the arears so at least your record will show you are now uptodate?

I paid off the arears last month but it hasn't updated on my credit file. I've started a dispute with Equifax and my local CAB office has sent Liverpool Victoria a letter.

Smile

mrs_deadline wrote: »

I just wanted to add, if you're looking to buy newbuild direct from a builder, there's absolutely no need to be rushed by them. Further down the line they won't have any qualms about delaying completion on your house! Obviously I don't know who you're dealing with but big developers rely on first-time buyers going along with their ultimatums, not haggling over the price, not doing local price comparisons, and so on.

Keep the builder waiting till YOU'RE ready. Take your time to clear your arrears, tidy up the credit record and get the best possible mortgage deal. Just let them know you can't commit until you're sure your figures add up. They get the message you're a canny buyer and not about to be pressured into hasty decisions or pay over-inflated prices.

A little patience now and you stand to save yourself thousands in mortgage and interest payments over the next 25 years.

It's a local builder and a affordable housing project, he'll want to sell these houses ASAP and has already told me that others are waiting if we pull out.

The house is 30% cheaper than the housing market and we would be devastated if we lost out on this opportunity.

We got rejected again today (on a sub mortgage?), so it doesn't look like it's going to happen


Thanks to all who replied

CLAPTON

don't really understand

quote
On my credit report Liverpool Victoria claim that I am in arrears (which I am, because of the reduced payments) but have marked my credit report with "Account in Arrears" where as Beneficial Finance have marked each month as "Payment Made"

and

quote
I paid off the arears last month but it hasn't updated on my credit file. I've started a dispute with Equifax and my local CAB office has sent Liverpool Victoria a letter.