Mortgage Rejection Advice

Nath_2389

Hi Everybody

I'm sure you've seen this type of message over and over again on the forums but any advice would be appreciated.

An offer has been accepted on a house my partner and I are looking to buy.

On Thursday 22nd April 2021, my mortgage broker (London & Country) rang me to say I would be rejected for a mortgage based on issues on my credit file (this was after receiving and informing my estate agents of our DIP).

I knew I had missed a handful of payments (online catalogue orders) over the years (last one being in 2019 but since then, all debts/accounts have been cleared) and I am currently in a very secure financial position.

I paid £15 to check my full credit report with Experian and found that there were 7 missed car finance payments on my account which is an error.

Basically a car company (CarShop) told me they would settle my existing car finance if I purchased a vehicle with them. It turns out they didn't settle it until 11 months after I purchased their vehicle and I received no correspondence from the original finance company or the company I purchased the vehicle with so I was none the wiser.

I've put in a dispute on my credit report and also made a formal complaint to both companies so that's another stress added to all of this but I'm hoping the credit file will be amended...

Anyway, I spoke with an independent broker who took all of my details/accounts/information (and i mean everything! She was very close to asking for blood by the looks of our correspondence - which I'm happy about and am not complaining as it is clearly needed!)

She has submitted an application for a mortgage and it has gone to an underwriter (sent on Tuesday 27th April 2021). 

I'm for want of a better word, bricking it that it will be rejected again and then the house will fall through.

Any advice, experiences or positive thoughts would be massively appreciated.

K_S

@nath_2389 After the first decline, you've done the right thing now by going to a broker who has the time to take the level of detail required to place your case.

I don't know anything about your case to guess your chances but it's a good sign that the new broker has been thorough. You would assume that she has placed it with a lender who will consider the case with the current credit file.

Good luck!

[Deleted User]

If you trust your broker, there's nothing you can do but wait. At least you now appear to b using a decent broker, rather than L&C, which is a step in the right direction.

You can give yourself an ulcer worrying about if you want, but it won't change the outcome. Apart from perhaps shortening your life expectancy.

If you're declined, you'll just need to work on improving your situation and reapply when the time is right.

Nath_2389

K_S said:

@nath_2389 After the first decline, you've done the right thing now by going to a broker who has the time to take the level of detail required to place your case.

I don't know anything about your case to guess your chances but it's a good sign that the new broker has been thorough. You would assume that she has placed it with a lender who will consider the case with the current credit file.

Good luck!

Thank you!

It's good to hear some positive things as it's been awful since the rejection and felt like everything was collapsing around me!

MWT

Nath_2389 said:

Basically a car company (CarShop) told me they would settle my existing car finance if I purchased a vehicle with them. It turns out they didn't settle it until 11 months after I purchased their vehicle and I received no correspondence from the original finance company or the company I purchased the vehicle with so I was none the wiser.

I've put in a dispute on my credit report and also made a formal complaint to both companies so that's another stress added to all of this but I'm hoping the credit file will be amended...

I'm sure that your broker is applying based on the credit file as it is, which is a good thing as you are likely to find that the finance company stick to the line that the reported late payments are accurate so they cannot remove them from your file.

If you do ever sell a car this way again it is very important to check that the finance has actually been cleared before you cancel any associated DD, and for preference always settle your own finance directly yourself.

Nath_2389

UPDATE:

The mortgage has been approved subject to valuation. 

Hoping that means things can finally get sorted!

Nath_2389

MWT said:

Nath_2389 said:

Basically a car company (CarShop) told me they would settle my existing car finance if I purchased a vehicle with them. It turns out they didn't settle it until 11 months after I purchased their vehicle and I received no correspondence from the original finance company or the company I purchased the vehicle with so I was none the wiser.

I've put in a dispute on my credit report and also made a formal complaint to both companies so that's another stress added to all of this but I'm hoping the credit file will be amended...

I'm sure that your broker is applying based on the credit file as it is, which is a good thing as you are likely to find that the finance company stick to the line that the reported late payments are accurate so they cannot remove them from your file.

If you do ever sell a car this way again it is very important to check that the finance has actually been cleared before you cancel any associated DD, and for preference always settle your own finance directly yourself.

The finance company have removed the late payments on my file so hopefully that will help things run more smoothly in the future!!!