Partial payment holidays and credit scores

Chewyboy

Hi there, in April, May, June  and July 2020 my daughter took an agreed partial payment holiday, i.e. reduced payments for 4 months, on a loan she had with the Yorkshire bank. In August she paid the loan off in full. In January 2021 the Yorkshire bank agreed in principle to give her a mortgage when she found a house to move to. After accepting an offer on her house and having an offer accepted on a house she wanted to buy she contacted the Yorkshire bank again. After checking her credit record they refused the mortgage as she now had a bad credit record due to her partial payment holiday. 
I am under the impression from what I have read on this site that 'payment holidays' shouldn’t affect credit ratings.
Any advice would be greatly appreciated.
Thanks in anticipation.

[Deleted User]

It doesn't affect the credit ratings but it'll affect how lenders see her which is all that matters. Not bring able to make full payment demonstrates much higher risk.

She'll need to hunt around for a lender happy to take on her higher risk profile.

Chewyboy

Thanks for responding. I have just spoken to her and it is definitely on her credit score as a negative for those months.

[Deleted User]

Credit scores aren't a real thing.  She has credit files that lenders report to.

When you say it appears as a negative, what do you mean?

Chewyboy

She has just screenshotted it to me.
It's from creditkarma.co.uk and it shows 4 missed payments for the aforementioned months.

[Deleted User]

Ask them to remove the missed payment markers, if the payment holiday was agreed.

It may not change the outcome, but may as well get it right.

Chewyboy

Thanks zx81 we’ll try that. Is there anything we can quote at them to show they are in the wrong by applying the missed payment markers?

[Deleted User]

Just tell them that agreed payment holidays under Covid shouldn't be marked as late or missed.

But make sure it was agreed under Covid rules. April seems early.

Chewyboy

Definitely done under Covid rules.
Yorkshire Bank is adamant that they can mark it as missed payment.
Ombudsman also says they can, it depends upon the business.
It would appear that the Yorkshire Bank and the Ombudsman have opposing views on this to the information on this and other websites.