Notice of correction on credit report. Affect mortgage?

Troy_af

Hi.

So, long story short I had a phone contract 4 years ago and when the contract was finished for some reason my account stayed open with Virgin. No extra money was charged, the account just simply stayed open.

I eventually had this account closed. This had raised a notice of correction on my credit report (now 2 years ago) and as a result my mortgage application was referred. The correction mentions that “care should be taken when using data at this address”.

However, the application was successful and I was issued an offer. 

Now that the rates have dropped I have looked into getting the offer amended to reflect the new rates. I have been advised that this would come with some risk as the original application was referred and therefore could be declined! For the record here my affordability is well within any kind of risk limits, less than 20% of my monthly income.

Nothing whatsoever has changed with my finances or application and now that the rates have dropped if anything this will have increased my affordability.

As the lender has already issued me an offer, the file correction surely cannot be an issue and has already been deemed acceptable by them? I am not understanding where the risk is here?

Sorry for the frustrated post but I am at the end of my tether now with mortgage underwriters. I was just looking for advice on what to do here and whether or not others would be willing to take the ‘risk’ here?

Thanks for any help.

ACG

Ive not read your post, but a Notic of correction will not alter the outcome of a mortgage application.
What it will potentially do is kick the application out for manual review, because the system is unable to process the credit check. 

It will generally only slow the decision down, it wont improve (or decrease) your chances of acceptance. 

housebuyer143

Someone stole my husband identity and took out loans in his name and didn't pay them.. He got a notice of correction and it never had any bearing on his ability to get a mortgage.

I believe they need to advise you that you are putting your current offer at risk if you go back to underwriting stage. 

Troy_af

housebuyer143 said:

Someone stole my husband identity and took out loans in his name and didn't pay them.. He got a notice of correction and it never had any bearing on his ability to get a mortgage.

I believe they need to advise you that you are putting your current offer at risk if you go back to underwriting stage. 

That's what I was hoping, that it was just something they need to make me aware of other than it actually being a problem.

Would going back to the underwriting stage mean having to resign a mortgage deed? This is the only issue I can think of which could be a potential problem as I may not be able to do so with working away.

Thanks again.

housebuyer143

Troy_af said:

housebuyer143 said:

Someone stole my husband identity and took out loans in his name and didn't pay them.. He got a notice of correction and it never had any bearing on his ability to get a mortgage.

I believe they need to advise you that you are putting your current offer at risk if you go back to underwriting stage. 

That's what I was hoping, that it was just something they need to make me aware of other than it actually being a problem.

Would going back to the underwriting stage mean having to resign a mortgage deed? This is the only issue I can think of which could be a potential problem as I may not be able to do so with working away.

Thanks again.

Essentially yes, you go back to underwriting and they suddenly don't like your case, you will lose your earlier offer as well. You would have to sign a new mortgage deed if you got a new offer. 

You can always go to a different lender for a new offer if you wanted, that way you keep the current one as a back up but if you get the new one from elsewhere you can go with that one?

kingstreet

A NOC is a PITA when applying for a mortgage. Get rid of it pre-application, if possible.

Troy_af

kingstreet said:

A NOC is a PITA when applying for a mortgage. Get rid of it pre-application, if possible.

Thanks for the advice. How do I get it removed from my credit report? It has never bothered me having it on in the past but this has spooked me a little.

Thanks again.

ACG

As I mentioned above, it does not alter the outcome. It just delays things as mortgage lenders literally ignore it and systems cant compute it which means it needs manual intervention when an automated process might have gone through with no issues. 

To remove it, you just speak to the credit agency/ies where it has been placed and ask them to take it off.