Hi there

I need some urgent help! I have just been turned down for a re-mortgage today and it has cost me £150. I have been been advised that an adverse payment arrangement is showing on my credit search. They use Experian. The broker did a credit search prior to me sending in the application, discussed my application with a bank rep and I had an offer in principle. He even advised me that the bank wanted me to include some existing credit on my cards in order to proceed with them, so what could have happened?

I do have 1 payment arrangement paying a token £1.00 to DCA, but this arrangement has been ongoing for many years and should not show on my credit report as default is 9 years old. I am also dealing with a court claim from Link financial since June 10 for a debt 13 years old, which I am disputing in full as I do not have any particulars of the claim. Could they have made an entry for a 13 year defaulted account?

Whatever it is, it certainly wasnt on my CRA until recently, as I have re-mortgaged, applied for a credit card and changed banks in the last 3 years. I dont have any other payment arrangement. I have re-joined Experian today for an on line credit report, but need to wait for security clearance which can take up to 48 hours. (So much for it being instant) I know I need to check what is on my file, but can anyone advise me what should be my next step and do I have a right to refuse to pay the £150 as a credit check was made by the broker and discussed with the bank prior to him telling me I had an offer in principle and then me completing the application form. £150 is required within 7 days.

Can anyone advise?

What was the £150 specifically for ?

Hi this was for not proceeding with mortgage to completion. Its a withdrawal fee.

From what i can find out the £150 is only due if you pull out of the deal (finding a cheaper mortguage) and was bought in to protect both sides.

I have found this statement from the woolwich.

"People who apply for a mortgage with the Woolwich and then pull out part way through the process are to be charged a £150 fee."

The Woolwich added that only those who decide not to take out a mortgage with the group, despite having been accepted, and those who have an application rejected because they have given false information will have to pay the fee.

People who are rejected for a mortgage by the Woolwich due to affordability concerns will not be liable for the charge."

You may have to look in to the terms set down by the specific bank from their own website.

Hi Iccarus, it was the Woolwich and I didnt pull out. Any chance I could get a link to that info please? The letter states I will be charged £150 'withdrawal fee' and this will be taken from my credit/debit card within 7 days. There was no application fee and I havent given them my card security details to take any payment. The notes in the Brokers illustration says some of the above terms and conditions, but not the one about affordability. It also states that its payable when you have not disclosed any relevant material facts relating to your application.

I have no knowledge of what is on the credit file, so I cant see what I could disclose as material. They told me they did a credit search and found adverse data sending me contact details for Experian. Are they suggesting Ive given them false information? The bank and the Broker had a discussion before the offer in principle. I really dont know whats happened.

sure here is the link to where i got the quotes from http://www.clickoncredit.co.uk/newsArchive/Mortgagewithdrawalfeeintroduced.html

Ive also found there mortgage lending criteria on http://www.mortgages-direct-uk.com/woolwich.htm

which gives outlines on what they will accept.

I hope this helps

Paul

Also Adverse credit info could be anything from applying to too many financial institutions in the last 6 months or late credit card payment in last 6 months

The best way is just wait and see what experian have to say, to see what this adverse check the details on your credit report and also verify that their is no major differences in the electorial roll and other financial outgoings to what was in the application.

If there is nothing obvious .Does the remortgage application decline letter specify why your declined and if it doesent can you find the reason from the bank and check if it ties up with your credit report.

If it is because of either of the two items you stated earlier ,it might be worth while to add a note explaining your token payments. The ccj should not show as it is over 6 years old

Hi Iccarus

Ive looked at the letter again and they mention credit scoring as the reason. Though I called yesterday and the lady I spoke to said its because there is a adverse payment plan in place but she didnt say for what. If it was adverse shouldnt it say that in the letter? She was not very easy to understand, so Im wondering if I misheard her. I know she definetly mentioned a payment plan being the reason. Doesnt explaining token payments for an old debt still count against you as much as a CCJ would? Anyway, I'll be wiser when I see the report and check it. I should get to speak to the Broker tommorow too.

Thanks so much for your advice.

Under normal circumstanses it doesent

The ccj is over 6 years and should not show on your credit file as it may be statute barred.(worthwile checking)

From the information youve given me you are still making payments, even though nominal for an old debt which will read as active on your credit report. This may put up your adverse payment plan and go against you as long as it is there.

It may be worth while to approach the original company and check if that debt has been written off especially if you are paying the third party as you are paying your £1 a week it may be the reason you cant get a mortgage.

It may also be prudent to add a note to your credit file explaining why your paying this account in such a way. As this could go in your favour on credit referals in the future.

Paul

Hi Iccarus

I do think its the £1 token payments which has gone against me. I recently noticed that I get statements from the OC showing payments made and the outstanding balance. So they havent written it off. I called the OC on Saturday, but they said if there's anything on the file it would have been placed there by the DCA and I should contact them. I will be able to confirm this on the credit report by tomorrow.

If thats the case I will lose my home as I am stuggling to keep up with the mortgage at that % and needed to move to a better deal to ease the pressure. The bank BR is 5.99% which is scandalous, its the same % as my fixed rate which will end in October.

Im not sure what my note should say as I would imagine it will still go against me whatever I say.

Regards

SF

Iccarus

In this case and given the terms and conditions which Woolwhich have published, would you say I am considered to have given false information as I didnt give them those details. I didnt even think about it as the account is so old. I cant afford to pay them £150. I was remortgaging and specifically looked for a deal which I didnt have any upfront bills to pay as I didnt have the money.

Thanks again, youve been a wonderful help, but Im really panicking. Things just seem to be snowballing and all this was thought to be behind me when I was just tarting out in life, young and not understanding the level of responsibililty I was trying to take on.

SF2010

The first thing to do is not panic.

Its best to make sure what this adverse credit is on your file, and go on from there

If it is what you state Check the status on this and see when the last time it was updated by the dca.

I would also check with the broker to see what specific reason they are charging the £150. As you havent pulled out they did and you were happy to continue with the arrangement.

Also try and find out if their is a way to continue with the arrangement or postpone it as you need to find out what this adverse credit is on your credit file. (this should also postpone the £150)

If they refuse.

You need to state under their terms and conditions,"People who are rejected for a mortgage by the Woolwich due to affordability concerns will not be liable for the charge." as the application was declined by themselves you should not be liable.

If they agree.

Dependant on what you find on your credit report Explain the situation. If it is the 13 yr old debt that is at fault it should not show on your credit report as clarified by the OC and should not effect their decision making process

Hope this helps.

Also if it is this payment plan that is causing your nightmare add a note to your credit file giving more information.As in the future it would be helpful with a statement rather than just going back to the lender saying an adverse payment plan.

Thanks Iccarus

I followed your advice and the Broker has agreed to cover the cost of the withdrawal fee if they insist it is paid. Im not sure why my credit report is so delayed, but I still havent got access to the instant online report! So much for it being instant. Im checking if its available today, but if not Im cancelling and will send my £2 in the post. I do have some time to sort this out now.

Thank you so much for all of your help!

Well thats good news and at least your not out of pocket even though your back to square one.

Im not sure about experian as I generally use equifax for my personal online credit checks and as far as i can remember its instant but ive been with them for a number of years.

Im glad I could be of help

Paul

Good result, SF2010 and Paul, Title changed.