Will my mortgage offer be withdrawn

DW74

Help! I checked my experian credit report before I applied for my mortgage, it was 975 which I though was good considering I had an unsettled default on the account. So I applied for a joint mortgage we passed all the credit checks and valuation check and received our mortgage offer. We instructed our conveyor to arrange a completion date of 6/4/18 and everything was going great. Until...14/3/18 I get an email advising my credit report has changed I expected it to show a search from Halifax but no it was from the debt collector for the default I had on my file already. After a bit of investigating it looks like it had dropped off although not yet 6 years old they've just noticed and added it back on meaning my credit score dropped overnight to 505 (very poor) I know they default was my own fault I had paid what I was due and didn't agree with the interest they had charged so left it left a balance I never had any reason to sign up for my credit score so never really been aware of what has been added or deleted from it until I was getting my mortgage and I thought it would be useful to have.

I could cry, I would imagine that prior to completion Halifax will do a final check to make sure nothing has changed in the last few weeks since the offer was issued at title check stage? this will likely flag up. Can they withdraw the offer at that stage? By then the missives will have been signed and no doubt we will then have to encounter some form of compensation to the seller if we can't find an alternative mortgage asap. I have read so many horror stories online some people say they do final checks some saying they don't - I don't know what to do, do I phone Halifax and be honest ? Do I wait and see what happens? which is unfair on my family and the seller if it goes belly up. Or do I plead with the debt company to see if they can do anything. Any advice greatly appreciated.

KatieDee

Your credit score is a completely made up set of numbers and I don't think the vast majority of lenders bother looking at it anyway.

The default however, could be a bit of an issue depending on how the lender views this.

Did you inform them of the default during the application process? If so, it's nothing they weren't already aware of when they gave the original mortgage offer. Although another debt company seems to have purchased it (or you've flagged up on the systems of the original creditor), they cannot give you another default. Even though it might look bad on your credit score, your actual credit history doesn't seem to have actually changed.

I may be wrong though There are many more experienced people on this forum who can advise you further so I'd wait for them to turn up!

DW74

Thanks for the reply. I'm stressing out so much, it is such a worry. When we done the application he asked if we had any credit cards etc, he never mentioned any defaults it was probably a bit niave of me not to mention it but I didnt give it a thought I've never applied for a mortgage before and just answered the questions asked. The debt was for a mobile phone contract the company who have the debt said ithat was on my file then somehow came off during that time my credit score was excellent but now they've realised and added it back on its had a huge impact.

I'm going to ask our conveyor if he can request the funds before we sign contracts to make sure the funds are available before we commit any further if I say nothing and sign the missives and it's withdrawn we will have to pay the seller £14500 in compensation !!!55357;!!!56867;

sugarbabe84

OP do you have any updates on how this went?