mortgage declined

rachael88

My mortgage broker has informed me that my mortgage was declined today, she has looked through my credit report and says it's due to a missed payment around 4 years ago. It's shown up as 1 1 1 2 2 so looks as though it's not been paid for 5 months, I now remember at the time I was struggling due to an unexpected bill (major car trouble) so I asked if I could miss the payment and pay extra over the next few months to make it up. They agreed to this and I didn't realise it would show as a missed payment until it was paid (seems obvious now, I know).
I'm going to speak with my broker about it asap but is there anything I can do?
My broker mentioned going with a different company with a bigger deposit but I think this will mean getting a smaller mortgage and so looking for a different house, do you think I should start looking?

kingstreet

1, 2, 3, 4, 5 is five missed payments, over five months.

1, 1, 1, 2, 2 is a three month period of one missed payment where you paid in months two and three, then another missed payment in month four.

Is it on all three versions of your credit file? What is the loan to value?

rachael88

It was definitely only one, just looked and on clear score it shows as a missed payment in 2 months but all the others for that year are green. On Noddle it shows as AA AA AR AR AR AR all the others show as OK? I have a letter from the company saying they are refunding charges from that period but it doesn't say what for and when I've queried it they say they have refunded charges as they didn't send a letter that they should have sent.
The loan to value is 90%.

kingstreet

So you made an arrangement to pay with your creditor which made the "AR" marker? When exactly did this end?

As long as this is at least three years ago, you should still have high street options if your payment history has been clean for the last two years minimum.

One or two of the smaller building societies would also be a home for this.

rachael88

I called to arrange a catch up plan as soon as the payment was missed, it was June 2014 so now just over 4 years ago and I can't remember exactly how many months it lasted but I think it was 5. Other than this my credit history is squeaky clean, I pay on time and use around 50% of my available credit (Which excluding my current mortgage isn't huge).
The decline was from Tesco bank, the application was only submitted yesterday evening.

Noobie2011

To be honest from what you have said I would not worry. If you have a good broker they should be taking this into account and then going to the high street lenders that are okay with this. If it is 4 years old then I cannot see it being a problem and would just double check all your credit reports to make sure there is nothing else mistakenly on there.

You could also ring the missed payment company in question and complain that you were not informed it would mark your credit rating. We did that with one of our credit cards when settled it for a lower amount and then removed the mark

rachael88

Thanks, I'm going to see my broker on Monday to see what the next step is, she got my last mortgage for me and seems to know what she's doing so hopefully will be able to sort this out. I have the number for the collections department of the company so will try speaking to them to see if they will at least send out a letter confirming it was only the one missed payment and was dealt with quickly.

rachael88

UPDATE
So after speaking to my mortgage broker she told me to look at my call credit report as apparently there's something on there. Long story short I apparently took out Barclays home insurance over the phone almost a decade ago and forgot to cancel when I moved and got my mortgage (no recollection of this what so ever). This for some reason has shown up as a personal loan from a company called Gresham and went into default when I cancelled the £30 direct debit at the end of 2016.
This is why I was declined not the missed payment in 2014, on the up side Barclays have agreed to refund the premiums which adds up to a hefty amount and will take the markers off my credit report as well as sending me a letter to show I am not and have not been in any debt with them. On the downside the letter could take up to 10 working days to come and I don't hold much hope for call credit updating their system in a hurry, I need to get the mortgage before October otherwise I will have to look at another house.

bigstevex

My Call credit 'should' update within the next month, I had a similar issue with virgin media last year putting a missed payment marker on me for no reason (their system screwed up) and it was resolved within the time between my monthly credit score reports. Have Barclays confirmed the markers have been removed, that's what you need to have done asap before my call credit show anything different/up to date. Get the broker to speak to the lender again maybe with the letter as proof once it arrives?

rachael88

The customer service lady said she would get the business centre to update call credit first thing tomorrow (they were closed when she tried this evening) and would call me tomorrow once it was done. I'm just panicking now that 10 working days takes us to the 28th and only gives me 4 weeks to have the mortgage approved, from reading on here I know 4 weeks is doable but it's cutting it close. I think my noddle report updates at the very end of the month.

sparkey1

Your noddle report is a monthly snapshot and can be really out of date by the time you see it.

I wouldn't normally advise this. If you want a daily snapshot, you are going to have to take out one of those free trial subscriptions with Experian or Equifax. Cancel before the term ends to avoid paying a fee.

However note this. Accounts normally update on a monthly schedule, so it could take weeks. Searches normally show next day.