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Mortgage Declined

(13 Posts)
SayrraT Sat 26-Sep-15 10:55:32

Just coming on here to complain really not sure that there is anything I can do or that anyone can help.

OH and I have been looking for our first house for a while now, we had our offer accepted a couple of weeks ago on a house we really loved. We'd already had a decision in principal from the bank (affordability checks said we could borrow up to £215,000) and I declared a default on my credit file at the very first meeting we had.

After our offer was accepted we made an appointment to do the full mortgage application, the application was referred and yesterday I received a call from the bank to say that there was an issue. The default on my credit file, they won't lend with this sad if I settle the account they might.

The default is from Orange and is £162, I do not agree that I owe this money as I cancelled my contract (in writing) after the minimum term of my contract but Orange did not cancel the contract (they did not receive letter) and continued to send me bills, to a address I no longer lived at.

Anyway this was all over a year ago and I've been through all the complaints procedure etc but Orange won't back down and I refuse to pay something I don't owe. After yesterday I thought fuck it I'll just pay it. Except Orange say they can't take the payment I need to contact the debt collection agency, the DCA say they can't take the payment I need to contact Orange sad

I have never missed any payment ever, we have a combined salary of ~£45,000 a 20% deposit and we want to borrow £136,000 (house is £170,000). On top of this we will still have ~£22,000 which we need to do the house up so I don't really think that we are in a bad position.

Right now, I'd pay the default 10x over just to get rid of it!

The additional problem we have is that I've just finished my PhD and started as a post-doc, most post-doc positions are fixed term contracts of 24-36 months usually. I am 5 months into a 36 month contract and because of this many lenders will not lend to us (need to be in a contract for 6 months).

I'm just so gutted as we'd found our perfect house, we've spent the 10 years we've been together living apart due to work commitments. Finally we have jobs close (ish) to each other (80 miles apart) and we can finally live together. Now it looks like we will have to continue renting the flat we are in and who knows when we will be able to buy a house.

I am trying not to give up yet as we have an appointment with a mortgage broker on Sunday afternoon so I'm hoping he can find us a mortgage even if its not the best deal.

Sorry for the long post and rant, not really expecting any advice or replies, just having a moan.

19lottie82 Sat 26-Sep-15 13:54:34

If you're not getting anywhere with Orange you need to get a "deadlock" letter from them, then contact OFCOM. Did you have proof of postage / delivery of your written cancellation? Did they acknowledge the cancellation at the time?

In the mean time try a mortgage broker, they may be able to help. Good luck!

Wishful80smontage Sat 26-Sep-15 13:57:41

I'd go with a mortgage broker we were refused twice then found a fab broker and went through straight away. You need to get the situation with orange resolved ASAP though.

thatstoast Sat 26-Sep-15 14:09:12

It might be useful if you can obtain letters from both orange and the dca in which they refuse to accept payment from you. A lender might look more favourably on the application if you can show you've tried to settle the default. It's very harsh to refuse an application due to a small default but that's the way regulation is heading unfortunately.

SayrraT Sat 26-Sep-15 14:11:22

Thank you smile

lottie I don't have any proof of postage, I sent it in May 2014 and didn't hear from Orange/DCA until October 2014 so even if I had proof I wouldn't have kept it that long.

They didn't acknowledge it but I've cancelled every single phone contract I've had in writing and never received any acknowledgement so I didn't think anything of it.

I've contacted Orange (EE) on Facebook and they are going to contact me next week, I just told them the brief story and said I just want to pay it now.

I really really hope the broker can help us find a mortgage, I am annoyed though that the lender we spoke to couldn't tell me before this that the default would cause a problem. I had my first meeting with them in July and the did the credit check then.

SayrraT Sat 26-Sep-15 14:18:31

Sorry, I missed your post thatstoat I have letters from Orange and the DCA each telling me to contact the other as they are not dealing with it anymore. I've sent those to the bank.

I wish now that I'd just it a year ago but why should I have to pay something I don't owe. They can tell me that they didn't receive my cancellation letter and bill me but I didn't receive their bills (because I'd moved) yet I still need to pay.

The original outstanding balance was £105 then the remaining £57 is the interest or whatever the DCA added.

Funnily enough the DCA have been very good, prompt in replying to emails and very sympathetic and pleasant on the phone.

SayrraT Sat 26-Sep-15 14:19:47

wishful were you declined due to a default as well or was it something else? Got all my fingers crossed that the broker can help and so so grateful he can see us quite quickly.

Wishful80smontage Sat 26-Sep-15 14:23:00

My oh had a default on his file from a couple years before and new broker knew who to bother with and who to rule out right away- if you're in the midlands I can recommend her

SayrraT Sat 26-Sep-15 14:26:16

Thanks wishful but we are in Scotland.

redannie118 Sat 26-Sep-15 14:36:03

Morgage broker is totally the way to go. We had been declined 4 times and they found us a brilliant deal (one of the cheapest around)in under 30 mins !! Best 350 quid I ever spent smile good luck op I know what a stressful time this can be !

Wishful80smontage Sat 26-Sep-15 14:36:18

Go on local recommendations for one on your area worth the extra money for a smooth process IMO- I was completely despondent really thought it wouldn't happen for us but ours got it all sorted so quickly and no stress. Hope you get sorted soon

SayrraT Sat 26-Sep-15 14:40:31

You've all made me feel a little bit more hopeful. The broker we are seeing comes well recommended so fingers crossed.

On Friday I was trying to think of all the good points of being declined i.e. I've got a huge project coming up at work so that would make things easier but really I was very disappointed and just wanted to cry.

I'll come back and let you know how Sunday goes.

asilretrac Mon 02-May-16 09:10:16

Hi Wishful, I know this is an older post but could you recommend the name of the broker you used - really need some advice as had our mortgage declined over a very old debt that we offered to pay off but NatWest refused to consider us - debt doesn't even show on my husband's credit file but because we are still paying it they refused.

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