Mystery bill hit credit rating and first application declined. Advice please.

Doozergirl

We're looking to remortgage our house and probably not the easiest clients, being self employed (but with full accounts) and needing what our broker is referring to as a "Day 1 remortgage" having built our own house.  LTV is less than 40%. 

We hit an immediate rejection on the initial soft application with Nationwide, because despite me subscribing to every free credit file agency going and making sure we were in financial shape, TalkTalk suddenly added 4 months worth of unpaid markers (and then partially settled to add insult to injury!) to my husband's credit file just as we put the mortgage application through.  We categorically did not receive a bill or any follow up from them for the *£15* closing bill at our old house.  The first we heard was from a debt collection agency.  I'm livid as there's a longer backstory, but ultimately a £15 bill that we knew nothing about is now the only black mark on two otherwise completely clean credit files with no late payments to speak of.  TalkTalk agreed that it was fully settled at least and that has updated to his file, but we've hit an impasse over the markers.  I"m taking this sitting down, so today I've spoken to our solicitor and I'm escalating the complaint to the Ombudsman and backing that up with a signed Statutory Declaration to state that no bill or proper communication was received.  This is all taking time though and I'm constantly anxious as it's seriously holding us back financially.  

Anyhow,  the question is  - our mortgage broker says to wait and that the route that I am taking is the best route because this £15 bill puts us straight from super low rates into the territory of a poor credit mortgage with fees of £3,000  and rates of around 4% - is that really the difference?  Does anyone use humans anymore or is it all computer says no?  

Go easy on me, please.  I'll answer other people's queries in a heartbeat but it took me ages to muster the courage to ask here for help. I'm so worried that the appeal will be rejected.  I cannot believe this is happening to us.  I thought I knew what I was doing and that we weren't much of a risk, but there's always some sort of stumbling block with us!  

MovingForwards

£3k seems a lot, even I didn't pay that with proper adverse and a sub-prime lender!

When are the markers from?

@K_S and @Deleted_User seem to know a lot of quirks with various lenders and may be able to offer suggestions.

K_S

@doozergirl This kind of issue with utility and phone accounts is not uncommon unfortunately. 

Off of the top of my head, TT doesn't show up on Experian so one workaround might be to use a lender that searches Experian and doesn't ask an explicit question about missed payment markers.

If it's showing up on Equifax and Experian, then there are a couple of building societies that can be approached that don't credit-score.

Doozergirl

K_S said:

@doozergirl This kind of issue with utility and phone accounts is not uncommon unfortunately. 

Off of the top of my head, TT doesn't show up on Experian so one workaround might be to use a lender that searches Experian and doesn't ask an explicit question about missed payment markers.

If it's showing up on Equifax and Experian, then there are a couple of building societies that can be approached that don't credit-score.

That's encouraging, thank you.  You might be right about experian as I hadn't seen it until we specifically got the Equifax report after the rejection.  We're using Clearscore, MSE credit club and Credit Karma on a regular basis, not sure who they use or indeed if those markers are showing on them.  

@MovingForwards The markers are all within this year. 🤦🏼‍♀️

ACG

There are manual lenders and you can get near normal rates (I mean around 2.5%) but I think you would be best waiting for this to sort it self out which could take a month or 2. 

Chances are with arrears this year, you are going to struggle at the best rates as those rates are there for a reason - ie less risk. You may not be a big risk, but your credit report says otherwise and lenders typically take that as gospel. 

Doozergirl

Thanks, I appreciate it.  I'll carry on with the Ombudsman, but I feel a bit better this evening.  

MWT

Doozergirl said:

We're using Clearscore, MSE credit club and Credit Karma on a regular basis, not sure who they use or indeed if those markers are showing on them.  

Credit Karma = Transunion

Credit Karma = Equifax

MSE Credit Club = Experian

Personally I prefer 'Check My File' which gives you Equifax, Experian, TransUnion and Crediva all in one place.

Doozergirl

I'll check that out, thank you! 

James-may

Virgin media had me down as default for an old account from 5 years ago, that was a missed payment every month for 5 years.

I've been a virgin media customer on and off for 10 years, with both mobile, TV, phone and broadband .

After complaining that I had never been contacted, spoken and never so much as mentioned by them in all the conversations I had ever had with them over the years, they agreed to alter my records as settled, provided I paid the £5 I apparently missed, they them gave me e a £5 credit to my current sub as a good will gesture.

I then put a dispute into whatever credit agency I was using, might have been Experian, a month later Experian emailed saying they spoke to virgin who agreed it was an error, and my credit file was ammended to reflect this.

If I hadn't do that it's unlikely I'd have a mortgage now.

kingstreet

Your broker should be aware there are a couple of mainstream lenders who ignore mobile comms and mail order issues.

Doozergirl

kingstreet said:

Your broker should be aware there are a couple of mainstream lenders who ignore mobile comms and mail order issues.

This is what I was worried about.  He's been doing this for a very long time and I was a bit concerned that he didn't seem to have any other solution.  I might be forced down a road that wasn't quite the right one for us.   

I know that we need someone experienced.  The house is made of SIPs, we've got the self employment thing and a newly built house that presently has no mortgage.  We're not the most straightforward, which might limit us a bit more?