COVID-19 Credit File Marks

ngc5195fly

Hi all,
So here i am for some moral support really during a very stressful mortgage application. We were at the very end of the mortgage application before we were due to receive an offer and then the underwriter decided to stop us in our tracks unfortunately due to late payment marks which were left in error on our credit file during the COVID payment holidays!! We were aware of that issue before we applied hence why we got a letter from the lender to confirm that the report was inaccurate and that it would be updated as soon as they fix their systems which even they didn't know when would happen but i know that it had affected a lot of people. Anyway this was provided as evidence to the underwriter but still not good enough to pass apparently! Problem is we don't know when the credit files will update as a result but not quite sure why the underwriter claims that they cannot override the decision when there is literally nothing else we can do and affordability is definitely not an issue in any way. Just think it's all quite unfair really.
Any suggestions are very much appreciated during this very difficult time! 

ngc5195fly

Anybody have some words of wisdom please ? :-(

MovingForwards

Ask the lender to do a manual update to the credit reference agencies.

Speak with your broker and ask they find a different lender.

Wait it out as lenders are uneasy about Covid payment holidays.

ngc5195fly

MovingForwards said:

Ask the lender to do a manual update to the credit reference agencies.

Speak with your broker and ask they find a different lender.

Wait it out as lenders are uneasy about Covid payment holidays.

Thanks for your reply. Issue is that particular lender does not know what has actually caused it in the first place and has affected thousands of customers hence why. They claimed that it had been sorted out once already for then to be given a late payment mark on another month instead and we are back at square one.never ending cycle at the moment but we may have to look at a different lender potentially yes. 

dunstonh

and then the underwriter decided to stop us in our tracks unfortunately due to late payment marks which were left in error on our credit file during the COVID payment holidays!!

It should be noted that the lenders can see whether you have had authorised arrears or not and lenders are treating authorised arrears during COVID as a negative on a lending decision.   it can make the difference between an acceptance or rejection.

problem is we don't know when the credit files will update as a result but not quite sure why the underwriter claims that they cannot override the decision when there is literally nothing else we can do and affordability is definitely not an issue in any way. 

It may not matter.  If the lender is not going to lend because of it then its game over with that lender.

Just think it's all quite unfair really.

Not really.   If you needed to take authorised arrears then it does make you a higher risk proposition to a potential lender.  It means you didn't have enough savings to cover you for a rainy day.  

Any suggestions are very much appreciated during this very difficult time! 

Are you using a mortgage broker?  if so, ask them what to do as this is exactly the sort of thing they can sort out (or may have avoided in the first place).

ngc5195fly

dunstonh said:

and then the underwriter decided to stop us in our tracks unfortunately due to late payment marks which were left in error on our credit file during the COVID payment holidays!!

It should be noted that the lenders can see whether you have had authorised arrears or not and lenders are treating authorised arrears during COVID as a negative on a lending decision.   it can make the difference between an acceptance or rejection.

problem is we don't know when the credit files will update as a result but not quite sure why the underwriter claims that they cannot override the decision when there is literally nothing else we can do and affordability is definitely not an issue in any way. 

It may not matter.  If the lender is not going to lend because of it then its game over with that lender.

Just think it's all quite unfair really.

Not really.   If you needed to take authorised arrears then it does make you a higher risk proposition to a potential lender.  It means you didn't have enough savings to cover you for a rainy day.  

Any suggestions are very much appreciated during this very difficult time! 

Are you using a mortgage broker?  if so, ask them what to do as this is exactly the sort of thing they can sort out (or may have avoided in the first place).

I totally understand what you’re saying however it is not my fault that these payment marks have been applied in the first place and it is clearly an error that has obviously caused issues further down the line when the mortgage application has been made. The worst thing is they don’t even have an answer as to when it’ll be rectified. 

Yes using MB so will see what happens from here. Thanks for your answer.