Remortgage - Credit check failed

inthevale

Hi! This is my first post on MSE and was wondering if I could get some help from people wiser and more learned than myself.

I am in the process of remortgaging. It's a help to buy that has matured now and the property developer is putting some pressure on me to complete so they can have their 25% back.

I am keen to get the remortgage moving as quickly as possible and get a decision in principle quickly. However, unfortunately I have declined a credit check with Natwest and Birmingham Midshires. I have checked my Experian credit report and my score is 974 / 999. I was advised by the broker to get an Equifax credit report and my score was only 280. I noticed a few things on it which are causing issues:

1. Mobile phone account - 4 years of default. This was a fraudulent account and not opened by me. I have now had it removed completely from my credit file (without too much effort)

2. "Missed payment" on my current account 18 months ago. Again I have questioned this and there is little evidence to show why it appears on my file. The bank has agreed to remove this (hopefully will be updated on my report by this week)

3. Missed payments in 2010-2011 on a settled account. This account was closed 6 years ago. I have asked the credit card provider to remove this from my file as the missed payments were over 7 years ago, but they have said it is not something they can do and it will stay on my file forever, just not contribute during the scoring. Is this true?

4. I am not on the electoral roll (I have signed up but the earliest it will show on my file is start of May).

My score has increased from 280 to 440 with the removal of the fraudulent mobile account but I am still awaiting removal of the supposed "missed" payment on my current account as well as the report updating my electoral roll status.

Do you think I should wait until I am on the electoral roll to reapply or will the removal of the default account be enough to get me through a second credit check?

Thanks

[Deleted User]

None of your scores are important. Disregard them.

Get on the ER but use a broker skilled in adverse credit. Your application needs to be made to the right lender.

inthevale

Thanks, its complicated. Due to my working situation (which isn't actually complex) there are only a handful of lenders will to consider me. Even though I'm a permanent employee and have no issues with affordability. This is why I am focusing on ensuring the credit check passes, as it seems to be the only hurdle now having identified lenders who are willing to lend.

I am just wondering if the removal of the fraudulent default will swing things for me or if I should wait till May? I am being hurried by the property developer.

[Deleted User]

Your broker will have a good idea of the criteria of each lender and be able to guide you.

Most things can be placed, it's just a matter of price.

Ben8282

inthevale wrote: »

I have declined a credit check with Natwest and Birmingham Midshires.

You declined the credit check?

inthevale wrote: »

3. Missed payments in 2010-2011 on a settled account. This account was closed 6 years ago. I have asked the credit card provider to remove this from my file as the missed payments were over 7 years ago, but they have said it is not something they can do and it will stay on my file forever, just not contribute during the scoring. Is this true?

No this is not true. A settled account will be removed from your credit files 6 years after it was last updated. It will NOT remain on your credit report forever. You have been misinformed.

inthevale

Yes somehow I failed the credit check. Which was very surprising as I have had multiple credit cards over the last several years, balance paid off in full every month. I also took out a PCP car loan 18 months ago with no issues and am only using up a small amount of my credit limit. The lender can see I have paid my mortgage off every month for 10 years and am not in arrears with any credit accounts.

I think the issue then is that it was last updated 5.5 years ago, but the missed payments are from 8-9 years ago. Any suggestions how I can the missed payments removed from all those years ago?

Ben8282

inthevale wrote: »

I think the issue then is that it was last updated 5.5 years ago, but the missed payments are from 8-9 years ago. Any suggestions how I can the missed payments removed from all those years ago?

No. You will just have to wait.
But I can't help wondering if the PCP loan and the balance outstanding on it is causing the problem in terms of perceived affordability rather than missed credit card payments from 2010/11. I am also wondering how you managed to obtain the PCP and the credit cards if you were not on the ER.
Also don't believe that the status 1 for the current account means that you missed a payment as obviously you cannot normally miss a payment on a current account. It means that you entered an unauthorised overdraft and/or had payments from the account unpaid during the period.

inthevale

ok thanks, so it will be gone in half a year. Good to know

The pcp balance is only £10k, not really that’s much money. And it’s not a liability, as it can be sold for close to that amount now. I don’t know how these things work as I dont work in finance or banking but I wouldn’t have thought a small amount like that in the grand scheme of things would make that much of a difference.

Regarding the current account I agree with you. I have spoken to them and they have advised me they don’t know what it is so they are removing it from my credit file.

Given that the ER seems to be a big issue, do you think I should wait till may when it will show on my file before I give it another go? I don’t mind retrying but if there is no hope without being on the ER then I’m wondering if it’s worth it?

phillw

inthevale wrote: »

The pcp balance is only £10k, not really that’s much money. And it’s not a liability, as it can be sold for close to that amount now. I don’t know how these things work as I dont work in finance or banking but I wouldn’t have thought a small amount like that in the grand scheme of things would make that much of a difference.

Affordability checks look at the monthly payment more than the balance.

inthevale wrote: »

Given that the ER seems to be a big issue, do you think I should wait till may when it will show on my file before I give it another go? I don’t mind retrying but if there is no hope without being on the ER then I’m wondering if it’s worth it?

I'm not sure how much benefit it will make having a recent electoral roll entry, but waiting can't hurt while applying again quickly might. You could try asking the lender, although you may not find anyone particularly helpful.

inthevale

Thanks for your response. I don’t think monthly affordability is the issue. I hope it was just the incorrect mobile phone default which has not been removed!

Have asked the lender and not helpful in the slightest!

inthevale

*now been removed