Estate Agent Trashed Credit

[lookinforinfo]

My partner has a buy to let mortgage and the estate agent has failed to credit the rental money into partner's account for two months running.

This has has the knock-on effect of two mortgages being unpaid.

 

The outstanding funds have now been credited to the account but neither mortgage company seems willing to remove the late payments.

 

I know that we can add the reason for the late payment to the credit file but is there any way to get it removed please?

 

The Estate agent will write letters to confirm that they were at fault and pay the bank and mortgage charges but is that enough when they have wrecked my parner's credit.

[obiter dictum]

Two missed late payment markers will not have a ngative impact if now paid and you miss no more in a six month period. Your credit score will return to normal

 

It is if you get a default status that will wreck your credit file. That has not happened

[unclebulgaria67]

If they applied for any credit accounts within 12 months, 2 late payment markers might cause them a problem. Also if existing credit cards are subject to credit file reviews, then it is possible interest rates might be increased.

 

The mortgage companies on receipt of Estate Agent letters could at their discretion clear the late payment markers, but they don't have to. If the markers caused any problems and the cost could be calculated, then you could sue the Estate Agent if necessary.

[lookinforinfo]

Thank you both for your comments which were better than I thought.

One of the mortgage companies has already said that even a letter from the Estate agent will not mean that they will remove the late payment marker.

Of course my partner was amiss in not picking up the estate agent's error but it does seem a bit over the top not to remove the marker when it is obvious that the non payment would not have occurred had the agent done the job they are paid to do.

[ericsbrother]

your beef is with the estate agent, you have a mortgage that wasnt paid, the mechanics of how you pay it is nothing to do with the mortgage conditions. In truth the markers wont have affected you but if they do in the future you can sue the EA for your losses. So, for example, refused a loan at an advertised super low rate and forced to accept a higher rate? sue for the difference in the cost of repayments. Almost worth taking out a loan just to test this and bury them

The agents should belong to a trade organisation like ARLA, get a complaint going.

[king12345]

Sack the estate agent and report them to the trade organisation as ericsbrother suggested.

Do you really need an estate agent to collect rent?

They don't do anything, I don't think they collect cash at the door, do they?

[stu007]

Also check to see if they are registered with National Association of Estate Agents (NAEA): http://www.naea.co.uk/

[sgtbush]

Your partner is responsible for the mortgage being paid on time everytime. Insufficient funds in the account is your partners responsibility. Didn't notice the 1st month????? Then you should be looking more closely at your partner and not blaming the agent. Its a separate issue

[lookinforinfo]

Thank you Sgt Bush we can always rely on you for your unvarnished truth.

[BazzaS]

Your partner is responsible for the mortgage being paid on time everytime. Insufficient funds in the account is your partners responsibility. Didn't notice the 1st month????? Then you should be looking more closely at your partner and not blaming the agent. Its a separate issue

 

Thank you Sgt Bush we can always rely on you for your unvarnished truth.

 

You may not like the way it was phrased, but the underlying message (it isn't the mortgage company's responsibility to check) isn't wrong.

 

If you want to claim damages against the estate agent expect them to rely on the fact that you have an obligation to 'mitigate your loss'.

It remains your responsibility to ensure the mortgage was paid ..... you had the option to

a) chase the estate agent, before the payment was due, or

b) seek the funds elsewhere, ensuring the mortgage payment was made. If you had done this, and the cost was still less than the damages that would have been caused, then the estate agent would be liable for the costs (such as interest) you incurred in doing so.

 

I'm sorry if this isn't what you want to hear, but I can't be sorry for pointing out the law that the estate agency are likely to rely on to limit the damages you could recover.

[sgtbush]

There is no point sugar coating answers and patting people on the head saying it will be alright, Someone else is to blame when their isn't.

The two are seperate issues and are not interchangeable to a point

[Steve__M]

Just to be a bit more constructive, your credit score includes a scoring for your ability to cope with the unexpected.

 

If you are renting out a property you cannot guarantee that rent will be paid on time every month as you are often dependent on your tenants being paid on time in the same way that the mortgage company are dependent on you being paid on time. Or the boiler may break down requiring a sudden need to find a thousand or two.

 

Ideally, people should have savings that cover such scenarios.

[lookinforinfo]

Thank you to all who have answered my questions it is appreciated.

 

To Sgt Bush et al-I had already acknowledged in post 4 that my partner should have picked up on the error so your comments were superflous. I am not blaming the agent for the non payment of the mortgage, I am blaming them for not paying the agreed funds into the account. The fact that my partner was undergoing a serious operationover plus moving house over that period was the reason the non payments were missed but does not excuse the agent.

Estate Agents find tenants for landlords and they charge high fees for doing so. In this instance the agent is a large reputable London company who has dealt with my partner and the tenant

for several years. The tenant has always paid on the right date so it is reasonable to expect that the Agent will forward that money less their fees as required in a tiimely fashion as stipulated in their contract. The fact that they didn't puts them in a position that they are liable for the cost of their breach of the contract.

[king12345]

Thank you to all who have answered my questions it is appreciated.

 

To Sgt Bush et al-I had already acknowledged in post 4 that my partner should have picked up on the error so your comments were superflous. I am not blaming the agent for the non payment of the mortgage, I am blaming them for not paying the agreed funds into the account. The fact that my partner was undergoing a serious operationover plus moving house over that period was the reason the non payments were missed but does not excuse the agent.

Estate Agents find tenants for landlords and they charge high fees for doing so. In this instance the agent is a large reputable London company who has dealt with my partner and the tenant

for several years. The tenant has always paid on the right date so it is reasonable to expect that the Agent will forward that money less their fees as required in a tiimely fashion as stipulated in their contract. The fact that they didn't puts them in a position that they are liable for the cost of their breach of the contract.

 

And this is a great opportunity for you to get rid of the estate agent and get the rent transferred directly to your account, saving rip off fees in the mean time.

Ok, they found a tenant, but then they just acted as a middle man taking a slice of your money for organising a standing order: 3 minute job.

[BazzaS]

The fact that they didn't puts them in a position that they are liable for the cost of their breach of the contract.

Subject to:

1) is there an applicable (limitation and / or exclusion) clause in the contract

2) Your obligation to mitigate your loss.

[lookinforinfo]

And this is a great opportunity for you to get rid of the estate agent and get the rent transferred directly to your account, saving rip off fees in the mean time.

Ok, they found a tenant, but then they just acted as a middle man taking a slice of your money for organising a standing order: 3 minute job.

 

If there was just one tenant that would be a possibility and it depends on the tenant for a start and the more tenants you have, the more the problems add up. In an ideal world you would be right of course but if you want a quieter life where the possible ongoing legal problemsetc dealing with tenants is handled by the estate agent the one has to bite the bullet.