Mortgage declined, how successful are appeals ?

Missrcj

Hello

A little background: in 2017 I had to take out a DMP , I then got on top of my finances and closed it in October 2018. However, as this is still within 6 years I have adverse credit history. My score is quite good now and keeps going up. I'm single and buying a house on my own. First house at the age of 45!  I also only have a 5% deposit. 
So, my mortgage broker went with Darlington BS, who gave me a AIP. 
I found a house under 20k of what they said they would lend me.
 I work for the NHS and so have good regular pay, and assurance of sick pay, pensions etc.
When underwriting my mortgage they found 3 returned payments in the last 3 months. One was my £33 Vodafone bill, which annoyingly came out the day before my pay day. The other 2 were standing orders I set up for myself to go into my Monzo account for my general spending. It helps my manage my budget.
Due to this they have declined my mortgage application. It seems really harsh when actually only one was to a company - my internet bill. The other two just meant I didn't have my spending money going in that week.
Is there any chance this could be appealed. It seems a massive decision (my first house, my credit history etc etc) really for the sake of £33. Which I actually paid just a few days after. My mortgage broker said he will appeal it but it's gone very quiet and I am wondering whether financial companies like that would consider an appeal or is that it, they just see 3 missed payments and reject it without fully seeing what the payments were for?
I'd appreciate any information, this is all very new and very stressful to me.
Thank you. 

Hoenir

With only a 5% deposit. The underwriters may be concerned by the slightest indication of financial stress. If you cannot put aside £33 to cover a direct debit a day before you get paid. Then having an unexpected spend such as  to cover a household emergency once you own a property. Is going to be unmanageable. 

vacheron

Missrcj said:

Hello

A little background: in 2017 I had to take out a DMP , I then got on top of my finances and closed it in October 2018. However, as this is still within 6 years I have adverse credit history. 

Based on my maths using todays date (June 2025) wasn't this DMP closed 6 years and 8 months ago?

RAS

Your credit score is an irrelevance. What matters is your credit record.

The DMP is not a matter of public record or on your credit records. Have your checked all your credit records? For free?

You could for example find that you have old AP markers on your records that stay for 6 years after the debt is paid off? 

I'd suggest making sure that you keep a buffer in your bills account to ensure that you don't make late payments. And consider whether to fully use the Monzo account which has different pots rather than two separate bank accounts. Just keep a small sum on the account into which your salary is currently paid in case the internet/Monzo goes down etc.

Herzlos

First, you need to change the date on any bills you feel might fail until shortly after pay day. Second, is that £33/month for your mobile phone? You should try and see if you can bring that down if you're not locked into a contract. 

From their perspective, any failed payments are bad, and given it was 'only' £33, which will be small compared to your mortgage, it implies that you're running on very fine margins and bad at financial planning. You need your recent banking history to be squeaky clean. 

On the bank appeals, it's pretty unlikely. You'd be better going to see a broker to find another lender who can help you. 

Missrcj

Thanks everyone. What you have said makes sense. Whereas I was seeing it that I only missed a payment of £33 actually does look bad if I can't afford £33 at the end of the month. It is actually only the first time I missed that payment but I can see how it looks.
My NHS pay has gone up (from 1st June) by 6k annually - it's the last step in my banding. So I think my broker was trying to use that as an argument too but I still haven't heard anything. 

Missrcj

RAS said:

Your credit score is an irrelevance. What matters is your credit record.

The DMP is not a matter of public record or on your credit records. Have your checked all your credit records? For free?

You could for example find that you have old AP markers on your records that stay for 6 years after the debt is paid off? 

I'd suggest making sure that you keep a buffer in your bills account to ensure that you don't make late payments. And consider whether to fully use the Monzo account which has different pots rather than two separate bank accounts. Just keep a small sum on the account into which your salary is currently paid in case the internet/Monzo goes down etc.

Thank you. What is an AP marker? I do have my credit file to look through 

RAS

Arrangement to Pay. Generally regarded as less problematic than a default but stays on your record for 6 years after the debt is cleared. Defaults disappear after 6 years regardless.

Not sure what your credit file is, you need all three credit records. 

Bookworm225

Missrcj said:

RAS said:

Your credit score is an irrelevance. What matters is your credit record.

The DMP is not a matter of public record or on your credit records. Have your checked all your credit records? For free?

You could for example find that you have old AP markers on your records that stay for 6 years after the debt is paid off? 

I'd suggest making sure that you keep a buffer in your bills account to ensure that you don't make late payments. And consider whether to fully use the Monzo account which has different pots rather than two separate bank accounts. Just keep a small sum on the account into which your salary is currently paid in case the internet/Monzo goes down etc.

Thank you. What is an AP marker? I do have my credit file to look through 

google:
An "AP" marker on a credit file stands for "Arrangement to Pay" and signifies that you have made an agreement with your lender to make alternative payment arrangements, typically different from the original agreement. This could mean paying more or less than the agreed-upon monthly amount, or extending the account duration. While it may help you manage your debts, it can negatively impact your credit score as lenders may view it as a sign that you are struggling to keep up with your commitments. 

TheJP

Im going to simplify. You have bad credit, missed payments and have a small deposit. 

ChirpyChicken

Give it a few years