Adverse Credit History After Mortgage offer

Kobby26

Hi guys,

I have been left in a really stressful position. We had our mortgage offer accepted by Barclays in May 2019. We have gone through all the conveyancing procedures and were waiting to exchange and complete.

However, the vendor for the property we were buying was in a chain that needed a probate to be granted before completion. We waited nearly 4 months and decided to start looking at other options. We found another property for the same price which offered more for the money.

We decided to go ahead with the new property and asked our broker to request that the property address on the mortgage offer be updated.
Just a week after sending the request off to Barclays, we have now been notified that the first property is now ready to exchange and complete and the vendors have suggested Monday the 9th of September.

Our broker phoned Barclays and asked them to stop the change of address and has just been informed that an adverse credit history has been recorded on my partner's credit file in June 2019 (after the offer was given). We have found out that this was a CCJ due to a parking charge notice that was sent to her previous address by the parking company. We have spoken to the parking company who have accepted responsibility and have sent a letter to the courts asking that the CCJ be set aside. My partner still has to attend court to defend herself before a judge.

Now what i want to find out is if Barclays will agree to release the funds to the solicitors taking into consideration that the CCJ was meted out in error and should;d be removed after the hearing on the 11th of September.

Please help!

[Deleted User]

No they wont. The change of address (which is done by the broker opening an amendment rather than sending anything off) will put the case back to pre-offer. It will send it back to the underwriting department to make a new decision on the lend.

Best you can hope for is to gather as much documentation as possible and hope that an appeal works. Fingers crossed your broker has a better business manager with Barclays than every one i have ever come across.

If I had this case I wouldnt hold out much hope until the CCJ was removed from the file completely.

If you were still going to wait to buy the first property, you should have gone for an offer with a different lender so you could have the first one remain valid while trying to get a 2nd sorted.

Kobby26

Thanks Deleted_User.

I thought as much but wanted to have high hopes. The broker has sent in an appeal hoping that Barclays will agree to reinstate offer after the court hearing.

Indeed we should have looked into a new mortgage offer for the other property but because we were almost certain we were going for the second property we didn't think this through properly.

ACG

This must be an april fools?
As if a mortgage broker has used Barclays.

Sorry, I can not offer any help as I quite literally turn cases away where the only option is Barclays. There is a rusty nail somewhere I would rather put in my eyes.

haras_nosirrah

I am afraid I also wouldn't hold out much hope here.
I think the broker needs to work on a plan b

Kobby26

Thanks guys.

Our broker has advised he is very limited when it comes to options until my partner has attended court and the CCJ has been officially set aside. This should be done in a week or so.

My other concern is that the CCJ really affected my partner's credit score and has taken her from 964 to 445 on Experian. This is rated as very poor.

Would we still be eligible for a mortgage with that score?

haras_nosirrah

The score doesn't mean much
while an active unsatisfied ccj is on there you will be really limited on options.

I think you will probably have to wait for the set aside

Kobby26

Thanks HARAS_NOSIRRAH.

We considered paying it off as its only £291. However, if we did agree to pay it then we would be accepting liability and the CCJ would have to stay on her credit file for 6 years.

This is why we are having to wait until the court hearing next week to have it all cleared up. It's really unfortunate this is happening especially at this time when everything is now ready for us to exchange and complete.

haras_nosirrah

The timing is awful and unfortunate. You don't know though if the lender would have done a last minute credit check before releasing funds so this may have come to light anyway (although would have been worse if you had exchanged)

It may have just gone through but you just have to work with what has now come to light

I hope it works out op

haras_nosirrah

This is barclays ccj criteria

County Court Judgements (CCJs/defaults)

Adverse credit as detailed below must be declined:

Any unsatisfied CCJ
More than 1 satisfied CCJ and the latest is registered within the past 3 years
Satisfied CCJs totalling more than £200 and the latest is registered within the past 3 years

MsGeorge88

ACG - Why do you dislike Barclays so much? Keen to know as my broker wants to place us with them. other option is Precise.