Decision in principle, but all of a sudden, credit score drops

Taradiamond1

Hi all,

after 5 years of continued domestic and financial abuse, I finally broke free 3 years ago. Embarked upon a debt management plan and in April this year, I became debt free 🥳 The credit card company completely removed arrears from  experian/equifax etc. For reasons unknown, the loan company never showed on either. Credit score now showing as good, got a decision in principle for a sensible amount through a mortgage broker.

Currently living in a rented flat with my 2 teenage children whilst house sale with my ex partner goes through. Nearing completion now. 2 years ago I broke my leg substantially and really struggle with the stairs in to and in my flat due to severe arthritis due to my fall. I need to move out before this winter and a house came up that I could afford and actuslly meets most of our needs. There is nothing else in my budget and hasnt been for a while. Luckily I was promoted back in November to a managerial role taking home £56k a year, moving up in increments this November, then in April. I will also have 18% deposit from my house sale. 
I put in offer, offer was accepted. The mortgage broker got the lender to start the application yesterday and it was an immediate no as overnight, my credit file plummeted. So I requested the reports. Equifax fine, no defaults. Experian shows the loan and is saying there is a default of £258 and is showing the arrears whereas this hasnt shown at all until yesterday, on anything!! I spoke to the loan company about 6pm yesterday who confirmed I have cleared my loan with them as of April. In fact through the DMP I overpaid and they owe me that £258 that is showing on my credit file. They are sending me a statememt via the post (as cannot do via email!!) to confirm that. I need to get on to Experian today. Even if I get the £258 gone, which will take a whole month at least, it will still show the arrears unless I can get them to take that off due to the financial abuse (credit card co did this so trying to remain hopeful through the tears!)


The loan company were confused as to why this is now showing as they confirmed they have not reported to the credit referencing companies on my account, and since I cleared my debts in April, there has been no activity on my account anyway.

Please help! I have waited 3 years for a chance to finally move on after years of hell. I have increased my salary, drastically improved my credit score. I really dont want to pull out of this house purchase...only agreed this week.....as its all I can afford in the area where my kids go to school, perfect estate where houses dont often come up. I have been looking for 2 years, seriously the last few months. Rental properties are like hens teeth too and rental of a 3 bed is costing more than the mortgage payments shown in my DIP. The flat I am in has 2 beds, I sleep in a corner of the living room so kids have a room each. I cannot go on in this situation.

If I can get the £248 default removed, is it worth trying another mortgage broker? I really dont want to go down the route of a mortgage for bad credit unless I have to, and not sure my deposit will be a high enough %

Really at rock bottom right now. Will be on phone to Experian as soon as they open today. Any advice appreciated. Is there anyway of getting them to fast track it as the account being in default is an error on someones fault! 

amnblog

What is your current mortgage broker doing about this situation?

ACG

Speak to your broker. There should be a way around it. 
You can either hold off  until everything gets sorted on your credit report, or you can find a lender who wont mind/wont pick up the default. 

Taradiamond1

amnblog said:

What is your current mortgage broker doing about this situation?

He says he could look another lender who specialises in poor credit but I would need a larger deposit, which I dont have! 

Taradiamond1

ACG said:

Speak to your broker. There should be a way around it. 
You can either hold off  until everything gets sorted on your credit report, or you can find a lender who wont mind/wont pick up the default. 

He is not sounding hopefull! He made it seem like it was a real challenge to get the decision in principal in the first place. 

Should I try another broker? 

Taradiamond1

Spoke to Post Office loans today and they were apologetic that the arrears didnt show earlier but really couldnt help despite the financial abuse! Experian have raised a dispute against it but understandably will only report what Post Office loans tell them. I have put in a complaint about how Post Office Loans have handled. My biggest arrears were credit card related and thst provider took into account my circumstances and removed any trace from my history. Ironically, the Post Office arrears were due to partial payments from the DMP. I was £30 short over 3 months. They currently owe me £284, more than the sum I ever defaulted on! 
Really at the end of my tether. Any suugestions for other brokers I could try,or more sympathetic lenders??