Which providers for poor credit rating

RheBeeS

Hi All,

New here so apologies in advance for any errors! Summary because I am never succinct: does anyone have any recommendations or lenders for people with a poor credit rating or advice on a lender who will do more checks than a 'computer says no' on the credit rating? 

Background: My husband and I are applying for a mortgage for a new property (£530k mortgage for a £730k house). We got a mortgage in principle for this amount from NatWest. 

The challenge is, back in March when I was heavily pregnant, I changed banks. I updated my payment details with all relevant things including a tiny loan I took out with Klarna for my phone. We sold our house in December so had about £230k sat in our banks for context but it was interest free so I thought why not so I can earn interest on the phone money. Boy do I regret it now! Anyway.. I updated my bank details in the Klarna app and it said on my loan summary page 'great news! Payments are all set up for your account so you don't have to worry about anything'. I still had my old bank account open with money in but I was now using another account for all my expenses and salary. Roll on May after giving birth in April and being in a baby blur since then and I got a letter from Klarna saying I had missed three payments in a row. They didn't add any charges strangely and I contacted them and explained that I update my details but they were very unhelpful so I just paid off the whole loan and forgot all about it. A couple of months ago I had a letter from Halifax saying they'd limited my credit rating to £500 after having this card for 15 years because of changes to my credit rating. I naively hadn't realised that this error by Klarna shows as three missed payments and now my credit score is terrible! It is dragging down my husband's a little too. On checkmyfile mine is 676 and my husband's 806 out of a 1000. 

It's obviously very frustrating and I've always had a perfect credit rating - we have credit cards but always pay off in full every month, have never defaulted on anything, follow all the advice about being on the electoral register etc. And I know if anyone actually looked at the report they would see that this was clearly an error - these were £25 a month payments and we had hundreds of thousands in the bank! 

So are there any lenders who would lend on these criteria? Or look deeper than just the score itself if we asked them too? Note I have tried to use both Habito and L&C for advice. The former was terrible and just recommended Halifax potentially and L&C have been a nightmare at missing appointments etc. so I'm getting desperate as our sellers are getting very nervous we aren't moving forwards yet. Any help would be amazing! 

dunstonh

Note I have tried to use both Habito and L&C for advice. The former was terrible and just recommended Halifax potentially and L&C have been a nightmare at missing appointments etc

Generally, factory line brokers are not suited for harder cases.  They want the quick and easy stuff that they can turn around easily.   A local independent broker is usually better in this scenario as they are usually a) more experienced and b) are not being timed by their employer to get you processed and move onto the next call.

Altior

You'll see this on the site ad nauseum, the scores are irrelevant, just marketing. It's only the reports that are significant as lenders have their own algorithms and criteria.

Aside from the mortgage, it would be useful to get the record cleared up anyway. I'm not clear on why the payments were not successful. If both accounts were funded, they should have been processed, even if there was a technical error with updating the account details. As it shouldn't have mattered which account the attempts were made?

housebuyer143

Why don't you go back to Klarna and have them correct their mistake? If you have proof you updated your bank details or that you had money in both accounts and they failed to take it then you should not only get the late payments removed but also probably get compensation for inconvenience they have caused you. 

ACG

Speak to a proper broker - the large call centres are just new brokers or brokers who are happy for the easy leads to be thrown in their lap. 

Proper brokers (smaller local firms) will usually work a bit harder and know a bit more.