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  • FIRST POST
    • nthandu
    • By nthandu 2nd Jul 18, 3:07 PM
    • 8Posts
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    nthandu
    Remortgage with bad credit rating
    • #1
    • 2nd Jul 18, 3:07 PM
    Remortgage with bad credit rating 2nd Jul 18 at 3:07 PM
    Hello all,

    We took a mortgage to buy a house in June 2017. This was on a join account of my self and my wife.

    At that time, both of our credit rating was good and there was no issue.

    But we recently found out that my wife's credit rating fell down due to a default(mobile contract) and the date of default is September 2013.

    As of not my credit rating is good and I am hoping it would stay same but my wife's rating is not good. We are making the payments towards the defaulted account and we are planning to make the whole payment(370) in next couple of weeks.

    We took our mortgage with a 2-year term and we are due to renew it by June 2019.

    We are worried that my wife's bad credit rating would cause issues when we go for remortgage. If that's the case is there anything we need to do to reduce the risk of remortgage getting rejected?

    Thanks.
Page 1
    • zx81
    • By zx81 2nd Jul 18, 3:09 PM
    • 18,621 Posts
    • 19,880 Thanks
    zx81
    • #2
    • 2nd Jul 18, 3:09 PM
    • #2
    • 2nd Jul 18, 3:09 PM
    The ratings are made up and therefore irrelevant.

    It's the detail of your files which is important. Have you checked your files, or just the scores? It will be all about the detail.
    • nthandu
    • By nthandu 2nd Jul 18, 3:12 PM
    • 8 Posts
    • 0 Thanks
    nthandu
    • #3
    • 2nd Jul 18, 3:12 PM
    • #3
    • 2nd Jul 18, 3:12 PM
    Sorry.. I am not sure if I understood it correctly.

    I have checked the rating which is not good.

    I have looked into the details which is showing a default with a date September 2013.
    • zx81
    • By zx81 2nd Jul 18, 3:12 PM
    • 18,621 Posts
    • 19,880 Thanks
    zx81
    • #4
    • 2nd Jul 18, 3:12 PM
    • #4
    • 2nd Jul 18, 3:12 PM
    The ratings are made up. Ignore them.

    What do your files show? Is the only negative your wife's default? What do YOUR files show?
    • nthandu
    • By nthandu 2nd Jul 18, 3:22 PM
    • 8 Posts
    • 0 Thanks
    nthandu
    • #5
    • 2nd Jul 18, 3:22 PM
    • #5
    • 2nd Jul 18, 3:22 PM
    My credit report doesn't have any defaults or missed payments.

    My wife's credit report is clear apart from that one defaulted account.
    • nthandu
    • By nthandu 11th Jul 18, 10:55 PM
    • 8 Posts
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    nthandu
    • #6
    • 11th Jul 18, 10:55 PM
    • #6
    • 11th Jul 18, 10:55 PM
    Could you please advise if there is anything we can do about this?

    As our mortgage is a joint application, one of the applicant's credit rating(because of default) does impact the application?

    As I said earlier, the default was listed in September 2013 and probably we would be going for the remortgage around May 2019 which is all most 5.5 years.
    • Hammath
    • By Hammath 11th Jul 18, 11:00 PM
    • 14 Posts
    • 4 Thanks
    Hammath
    • #7
    • 11th Jul 18, 11:00 PM
    • #7
    • 11th Jul 18, 11:00 PM
    If your wife has a default in 2013 but you got your mortgage in 2017 then it would have been seen on your mortgage application so surely if if didn't hinder you getting a mortgage then it shouldn't effect you getting a remortgage when the only difference is that the default is a year older?
    • nthandu
    • By nthandu 11th Jul 18, 11:04 PM
    • 8 Posts
    • 0 Thanks
    nthandu
    • #8
    • 11th Jul 18, 11:04 PM
    • #8
    • 11th Jul 18, 11:04 PM
    Yes, but it wasn't listed in the credit report when we took the mortgage in 2017. It started appearing recently.
    • foxy-stoat
    • By foxy-stoat 12th Jul 18, 11:08 AM
    • 2,667 Posts
    • 1,534 Thanks
    foxy-stoat
    • #9
    • 12th Jul 18, 11:08 AM
    • #9
    • 12th Jul 18, 11:08 AM
    Yes, but it wasn't listed in the credit report when we took the mortgage in 2017. It started appearing recently.
    Originally posted by nthandu
    Just do a retention product with your existing lender nearer the time, if you can do that online they probably wont even run a credit search.

    You cannot change the facts of the past - just clear the default ASAP and time will do the rest.
    • kingstreet
    • By kingstreet 12th Jul 18, 11:47 AM
    • 34,129 Posts
    • 18,520 Thanks
    kingstreet
    Stay on lender's standard rate (or whatever you will automatically roll onto) then remortgage in September next year when the default will automatically disappear when it is six years from registration.

    Otherwise, as suggested, a customer retention product from your existing lender will see you over this period.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • nthandu
    • By nthandu 13th Jul 18, 8:33 PM
    • 8 Posts
    • 0 Thanks
    nthandu
    Thanks for the info @foxy-stoat and @kingstreet.

    I am under the impression that, customer retention product is applied separate to mortgage for the house renovation purposes. Please correct me on this?

    Does lenders offer a standard rate without going for remortgage? Do I need to do anything for this purpose?

    Is going for remortgage necessary? Can we ask/request lender to continue on the existing mortgage rate rather going for remortgage?

    Thanks in advance.
    Last edited by nthandu; 13-07-2018 at 8:33 PM. Reason: missed something
    • sammyjammy
    • By sammyjammy 13th Jul 18, 8:57 PM
    • 4,388 Posts
    • 4,743 Thanks
    sammyjammy
    Thanks for the info @foxy-stoat and @kingstreet.

    I am under the impression that, customer retention product is applied separate to mortgage for the house renovation purposes. Please correct me on this?

    Does lenders offer a standard rate without going for remortgage? Do I need to do anything for this purpose?

    Is going for remortgage necessary? Can we ask/request lender to continue on the existing mortgage rate rather going for remortgage?

    Thanks in advance.
    Originally posted by nthandu
    Not sure what you mean by your first comment?

    If you do nothing you will go not your lenders Standard variable rate, you do not have to remortgage but its likely the rate will be higher than what you are on now and you will be at the mercy of the BoE as to interest rate rises.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • nthandu
    • By nthandu 13th Jul 18, 10:25 PM
    • 8 Posts
    • 0 Thanks
    nthandu
    Sorry for the confusion.

    I don't know much about the retention products and how they work and how they are related to mortgages.

    So lender would move the existing mortgage to standard rate without doing any further credit check if we don't apply for the remortgage?

    Thanks,
    Naresh
    • nthandu
    • By nthandu 14th Jul 18, 7:01 AM
    • 8 Posts
    • 0 Thanks
    nthandu
    Also, on lender's webpage switching to new deal for existing customer says

    When you are an existing mortgage customer there are no affordability or income checks, no legal or valuation fees to pay and no new Direct Debits to set up.

    Does that mean they don't run credit check?
    Last edited by nthandu; 14-07-2018 at 7:02 AM. Reason: formatting
    • Thrugelmir
    • By Thrugelmir 14th Jul 18, 9:38 AM
    • 59,835 Posts
    • 53,185 Thanks
    Thrugelmir

    Does that mean they don't run credit check?
    Originally posted by nthandu
    Correct. If the switch is performed online.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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