Aldermore Mortgage - Previous CC Arrears

simk6

Hi,
Sorry for posting another one of these advice posts - there are plenty on here but thought i would highlight my circumstances as everyone's is different. Unfortunately during late 2018 to mid 2019 i had accumulated a total of 7 months arrears with a barclaycard credit card (family reasons) and my DD had somehow not managed to take off the money for these months so i accumulated the arrears over 7 months. Surprisingly enough I never received a default on my CC as i was able to clear the amount once i had returned to my flat and realised i had received a default notice so this prompt me to clear the balance. 

On my credit report it is reported at "6" twice for the 6th and 7th month. I had spoken with a local MA and highlighted my case to him and he had said i would struggled with a mainstream lender due to these arrears being in the last 24 months as i would not fit the criteria so he has recommended aldermore bank, he successfully managed to acquire a DIP on friday as we submitted an over on a property for £145,000. We are looking to submit a full application tomorrow and we will see what happens with them although he suggests that it will be fine as they use aldermore regularly. I'm very worried as you could imagine as to the likelihood of being accepted despite what our advisor has said - on the key credit criteria it states 2 missed unsecured loan payments in 24 months, if you also look at the intermediary documents on how to interpret your clients credit report it says we class a delinquent account as a default and must follow that criteria. They do accept a settled default within 13-36 months upto the value of £500 - in my case i didn't actually default the account so my monthly arrears increased by around £12 a month never surpassing £300 so i'm unsure if that will qualify. The missed payments was a completely out of character and i have never missed a payment in the past 17 months so i have turned over a new financial slate so i hope the underwriters will take this into consideration.

Anyone provide any advice or do you think i am over-reacting?

Thanks 

Viki2410

Hello,
We used Aldermore as I had a settled default for about £2.5k on a credit card that was just over 12 months old. Don't get me wrong, the rate was not the best but it enabled us to get our mortgage and they were really good and accepted us in about a week from application. We're just looking at our remortgage options now 2 years later and we can go high street this time round. 
Trust your broker, they won't want to put an application in they think will be declined as it's just more work from them. Sure you will be ok and good luck

simk6

Viki2410 said:

Hello,
We used Aldermore as I had a settled default for about £2.5k on a credit card that was just over 12 months old. Don't get me wrong, the rate was not the best but it enabled us to get our mortgage and they were really good and accepted us in about a week from application. We're just looking at our remortgage options now 2 years later and we can go high street this time round. 
Trust your broker, they won't want to put an application in they think will be declined as it's just more work from them. Sure you will be ok and good luck

Thanks for this,

I agree the rates are awful but this would be a stepping stone mortgage!

Good luck with your re-mortgage!

fieldellie25

simk6 said:

Hi,
Sorry for posting another one of these advice posts - there are plenty on here but thought i would highlight my circumstances as everyone's is different. Unfortunately during late 2018 to mid 2019 i had accumulated a total of 7 months arrears with a barclaycard credit card (family reasons) and my DD had somehow not managed to take off the money for these months so i accumulated the arrears over 7 months. Surprisingly enough I never received a default on my CC as i was able to clear the amount once i had returned to my flat and realised i had received a default notice so this prompt me to clear the balance. 

On my credit report it is reported at "6" twice for the 6th and 7th month. I had spoken with a local MA and highlighted my case to him and he had said i would struggled with a mainstream lender due to these arrears being in the last 24 months as i would not fit the criteria so he has recommended aldermore bank, he successfully managed to acquire a DIP on friday as we submitted an over on a property for £145,000. We are looking to submit a full application tomorrow and we will see what happens with them although he suggests that it will be fine as they use aldermore regularly. I'm very worried as you could imagine as to the likelihood of being accepted despite what our advisor has said - on the key credit criteria it states 2 missed unsecured loan payments in 24 months, if you also look at the intermediary documents on how to interpret your clients credit report it says we class a delinquent account as a default and must follow that criteria. They do accept a settled default within 13-36 months upto the value of £500 - in my case i didn't actually default the account so my monthly arrears increased by around £12 a month never surpassing £300 so i'm unsure if that will qualify. The missed payments was a completely out of character and i have never missed a payment in the past 17 months so i have turned over a new financial slate so i hope the underwriters will take this into consideration.

Anyone provide any advice or do you think i am over-reacting?

Thanks 

Can I ask how you got on with this please? Myself and my partner are due to have a application sent off with Aldermore for our first mortgage together. My credit score is 968/999 excellent and my partners is 999. He has no missed payments and one credit account which was paid off and closed and I unfortunately have a more trickier situation. I have 1 missed payment like yourself for my previous car finance in 2019 which went on from jan-December without me even realising. This was paid up in December 2019 so 16 months ago now. I also have 1 missed payment on my barclaycard back in 2019 and one missed payment for PayPal in Feb 2020. Our broker has been supportive so far and has suggested Aldermore. He said he spoke with one of the advisors who said that after him going through our full credit reports they can’t see why we wouldn’t be approved but if it’s a case of computer says no based on the fact that my report still shows me having my car finance on there and a barclaycard even when they are all paid off and closed, I feel like we are going to get a decline. 

I understand we should trust our broker but having seen some of the feedback with people having mortgages declined but with only one missed payment ever it doesn’t make me very hopeful. 

simk6

fieldellie25 said:

simk6 said:

Hi,
Sorry for posting another one of these advice posts - there are plenty on here but thought i would highlight my circumstances as everyone's is different. Unfortunately during late 2018 to mid 2019 i had accumulated a total of 7 months arrears with a barclaycard credit card (family reasons) and my DD had somehow not managed to take off the money for these months so i accumulated the arrears over 7 months. Surprisingly enough I never received a default on my CC as i was able to clear the amount once i had returned to my flat and realised i had received a default notice so this prompt me to clear the balance. 

On my credit report it is reported at "6" twice for the 6th and 7th month. I had spoken with a local MA and highlighted my case to him and he had said i would struggled with a mainstream lender due to these arrears being in the last 24 months as i would not fit the criteria so he has recommended aldermore bank, he successfully managed to acquire a DIP on friday as we submitted an over on a property for £145,000. We are looking to submit a full application tomorrow and we will see what happens with them although he suggests that it will be fine as they use aldermore regularly. I'm very worried as you could imagine as to the likelihood of being accepted despite what our advisor has said - on the key credit criteria it states 2 missed unsecured loan payments in 24 months, if you also look at the intermediary documents on how to interpret your clients credit report it says we class a delinquent account as a default and must follow that criteria. They do accept a settled default within 13-36 months upto the value of £500 - in my case i didn't actually default the account so my monthly arrears increased by around £12 a month never surpassing £300 so i'm unsure if that will qualify. The missed payments was a completely out of character and i have never missed a payment in the past 17 months so i have turned over a new financial slate so i hope the underwriters will take this into consideration.

Anyone provide any advice or do you think i am over-reacting?

Thanks 

Can I ask how you got on with this please? Myself and my partner are due to have a application sent off with Aldermore for our first mortgage together. My credit score is 968/999 excellent and my partners is 999. He has no missed payments and one credit account which was paid off and closed and I unfortunately have a more trickier situation. I have 1 missed payment like yourself for my previous car finance in 2019 which went on from jan-December without me even realising. This was paid up in December 2019 so 16 months ago now. I also have 1 missed payment on my barclaycard back in 2019 and one missed payment for PayPal in Feb 2020. Our broker has been supportive so far and has suggested Aldermore. He said he spoke with one of the advisors who said that after him going through our full credit reports they can’t see why we wouldn’t be approved but if it’s a case of computer says no based on the fact that my report still shows me having my car finance on there and a barclaycard even when they are all paid off and closed, I feel like we are going to get a decline. 

I understand we should trust our broker but having seen some of the feedback with people having mortgages declined but with only one missed payment ever it doesn’t make me very hopeful. 

Hi Hope you are well,



We have had our mortgage offer through the post now and will be completing on the 30th of this month! we didn't get asked for any additional information although we did ensure we provided everything we could to Aldermore when our application went in so they didn't have to ask for anything else. Due to us being in scotland we were able to have our offer on the 23rd of march as aldermore didn't have to conduct a valuation as all homes in scotland must come with a valid home report when sold.


Aldermore do obtain your credit reports as you would imagine but everything was assessed by their underwriting team and i think that's what's good about aldermore according to their website the initial underwrite is done within the first 5 days.

Hope this helps  

If you need anything else just let me know! 

fieldellie25

Hi, that’s great news for you! Can I ask what you initially provided please when applying so that they didn’t require any further information?

simk6

fieldellie25 said:

Hi, that’s great news for you! Can I ask what you initially provided please when applying so that they didn’t require any further information?

We sent the following,

3 months bank statements from our joint account for income.

3 months of savings accounts as proof of deposit

3 months payslips each

Direct Debit Mandate

Employed applicant declaration for both of us

Both of our P60s from 2019/2020

fieldellie25

Hi there, and did you have food and retail etc on your bank accounts as well as savings? I’m just very conscious that our bank statements have a lot of food contactless payments on and a few retail bits etc so I want to know if they questioned anything of yours please?

simk6

fieldellie25 said:

Hi there, and did you have food and retail etc on your bank accounts as well as savings? I’m just very conscious that our bank statements have a lot of food contactless payments on and a few retail bits etc so I want to know if they questioned anything of yours please?

Yes, we use our current account for everything and use contact less frequently. Bills, takeaways  & moving money from savings to current account.