credit checks for a mortgage.

[Susiebling365]

Hello, I am writing a question to help my daughter out.

My daughter in 2008 had a mortgage with partner , they had a baby and he walked. A lot of emotion and he came back and she lived with me. The mortgage payments were kept up. 2009 they decided to get rid of the house, neither of them could afford it on their own.

So a couple of payments were missed, they worked with the bank, handed the keys back.The house was sold, and the remaining balance was split 50 50 and paid off. End of that story.

She is now looking to buy with her new partner. Done a credit check , and its quite clean , no debt. Her mortgage advisor however says she needs to do the credit search from the house she used to live in (that was handed back) as this piece of bad credit could show up on a later deeper search when she tries to purchase a new house.

We have the Experian report, and I don t really know what he is on about. She did it from my address but it has everything on it down to 2 bras she bought online. Any ideas on what this broker means when he says search from the old adresss... its mentioned on the Experian report for the time she was living there...

Much appreciated

[mgfboy]

Re: credit checks for a mortgage.

How long ago did all this happen and if there was a balance left over after the sale that could be distrbuted , it would normally mean the lender was paid off and would be happy.

Lenders will normally ask for the address in the last 3/6 years just to check such things though as old credit history and when you say her record is fairly clean what do you mean by that, the reason I ask is alot of main stream lenders want you to be squeeky clean.

[Susiebling365]

Re: credit checks for a mortgage.

Thanks

The house was paid off, its been sold, debt settled....that took from 2009 - 2011... They did n t rush... but nothing owing now....

She has no debt at all, a couple of late payments on phone bill.. about it..

Do the banks keep a "secret" reference on people, is there something we don t know about? I was led to believe that what was on the Experian etc files was a true picture..... This mortgage broker seems to think other facts will show up when he does a credit check.... I don t get it?

[Never-In-Doubt]

Re: credit checks for a mortgage.

Do the banks keep a "secret" reference on people, is there something we don t know about? I was led to believe that what was on the Experian etc files was a true picture..... This mortgage broker seems to think other facts will show up when he does a credit check.... I don t get it?

You have 3 CRA's (Equifax, Experian & CallCredit) - each records different and varying data.

You have a few FPA's - these deal with fraud and application irregularities and such firms include CIFAS, National Hunter and Experian Analytics. Each does its own thing and is quite separate to a CRA and the data provided within the CRA.

That's a basic starter - NO banks do not keep a hidden system, it is all publicly accessible via the above firms.

[Never-In-Doubt]

Re: credit checks for a mortgage.

Hello, I am writing a question to help my daughter out.

My daughter in 2008 had a mortgage with partner , they had a baby and he walked. A lot of emotion and he came back and she lived with me. The mortgage payments were kept up. 2009 they decided to get rid of the house, neither of them could afford it on their own.

So a couple of payments were missed, they worked with the bank, handed the keys back.The house was sold, and the remaining balance was split 50 50 and paid off. End of that story.

She is now looking to buy with her new partner. Done a credit check , and its quite clean , no debt. Her mortgage advisor however says she needs to do the credit search from the house she used to live in (that was handed back) as this piece of bad credit could show up on a later deeper search when she tries to purchase a new house.

We have the Experian report, and I don t really know what he is on about. She did it from my address but it has everything on it down to 2 bras she bought online. Any ideas on what this broker means when he says search from the old adresss... its mentioned on the Experian report for the time she was living there...

Much appreciated

Hang on - right, on the Experian report you can see - can you clarify that under the part to do with addresses does it show:

1. Your address (ie your daughters current address)
2. Daughters old mortgaged address

If the experian file shows the two addresses then fine, nothing to worry about but if for any reason the old address is missing from the report then the mortgage firm will want to check back 6 full years so will ask for a full 6 year address history.

A mortgage in principle can be offered using 3 years addresses so maybe the credit file only shows her staying with you, in which case that'd be an error.

If you clarify what you can see under addresses on the CRA that'd help - not the actual data but confirm that there are more than one address/linked address....?

[Susiebling365]

Re: credit checks for a mortgage.

It does show all linked addresses, ie.. home living with bf, mortgaged address back home.. all linked, but I will go take a nother look to be sure.... Just want to see her settled...

[Never-In-Doubt]

Re: credit checks for a mortgage.

It does show all linked addresses, ie.. home living with bf, mortgaged address back home.. all linked, but I will go take a nother look to be sure.... Just want to see her settled...

If all her addresses are showing then it'll be fine! :niddy

[Susiebling365]

Re: credit checks for a mortgage.

Yes just checked.... my home address linked to each one... she lived with bf, then moved, then home again, all addressess are linked to my house .... Fingers crossed then. I was just worried that the banks have another form of checking... This broker just being over cautious and suspicious, as they are.

She decided to go for the credit checks to get a mortgage in principle, as need to know... What a mine field....Thanks,, I will tell her this, it might help till the report comes through...

[mgfboy]

Re: credit checks for a mortgage.

Yes just checked.... my home address linked to each one... she lived with bf, then moved, then home again, all addressess are linked to my house .... Fingers crossed then. I was just worried that the banks have another form of checking... This broker just being over cautious and suspicious, as they are.

She decided to go for the credit checks to get a mortgage in principle, as need to know... What a mine field....Thanks,, I will tell her this, it might help till the report comes through...

If she is clean most lenders desision in principle generators will give her broker the results straight away, so she wont have to wait.

[Susiebling365]

Re: credit checks for a mortgage.

We?ll.. it got declined.. so she none too happy today...

What I am now querying how do we find out why? The mortgage broker did not respond to her request of why she was declined. She needs to know so that she can put it right as we cannot tell on the credit report alone.

What i am wondering is that her ex partner is still connected in some way and maybe that has an affect as we do not know whether he did actually pay his half of the remaining debt. We do know that he incurred a lot of credit card debt whilst he was living there. He used this to pay the mortgage most months !!!

Any suggestions to how we start

(Takes my mind off the BH problem I suppose

[Never-In-Doubt]

Re: credit checks for a mortgage.

Ahh financial links. She may have to do a notice of disassociation with the CRA's - although there may be more to it than that. For example if her ex missed mortgage payments on a joint mortgage that WILL go against her as would any other financially linked accounts.

If her ex is badly in debt or the likes she will be associated and thus affected by it. Bummer really.

[Never-In-Doubt]

Re: credit checks for a mortgage.

ps you can only do a deassociation if there are NO linked accounts or financially linked credit. That said any past accounts (payment history) will show up so the exes bad credit may still affect her AFTER any successful deassociation.

[Susiebling365]

Re: credit checks for a mortgage.

The joint account is closed. What we are not sure of is if he paid his half of the mortgage balance.

Is there no way in finding out if he is associated or linked in anyway?

[Susiebling365]

Re: credit checks for a mortgage.

Also, this mortgage does not show on her credit report. just the joint account being closed (Santandar.. Abbey National)

How does she set about deassociation ? It will be a start.

Her ex went into debt when he was living in the joint home, but in his name.

[ken100464]

Re: credit checks for a mortgage.

Just been through this very thing and its been a devil of a job if I am honest being passed from pillar to post.

Eventually in my case I had to tackle Nationwide the OC and get them to break the link.

The CRA's would have none of it until the reporting body got itself in order.

Luckily for me they backdated the break to 6.5 years ago so everything fell off there and then. But I had to get together all sorts of documents to prove there was no connection anymore and hadnt been for the time I had been claiming.

Once Nationwide was convinced it all fell away in about 4 weeks on the CRA's.

I was surprised how bloody difficult they have made it all tbh. Started the complaint in mid june and the last link (on Noddle) fell away beginning of December.