Credit problem due to pcp settlement

[MOBB]

Currently have a good credit score, but applied for a mortgage today and was refused due to Poor credit score

Confused mortgage guy asked me to do a Noddle credit check which I provided, and buried in the report was a pcp deal that was settled last year

Every payment says “ok” except the final one which says “aa” - mortgage guy says it means arrangement, which is a bad thing?

On 25/8 I bought a bmw, part exed a Peugeot which had finance in it. BMW dealer settled the finance 5/9. Is this reasonable?

I am going to ask the Peugeot finance company to correct this, anybody got any experience of this kind of thing that they can share with me

Luckily the wife can get the mortgage with just her income, but having found a superb chain free buyer, and amazing forever home with no chain, today was somewhat fraught

TLDR check your bloody credit reports, the actual data not the score!!

[Sarnie]

Doesn't sound right to me...…..

[MOBB]

In what way Sarnie? Do you think that something like I described wouldn’t cause a rejection? Everything else on my credit report looked ok and my credit score was actually higher than my wife’s, who secured the mortgage on her own.

I was THIS close to pleading for your help yesterday!!!!!

I ended up being rejected by Halifax and Natwest. Current lender Santander said credit report was fine, but as they don’t like contractors that much we had to move away

[Sarnie]

MOBB said:

In what way Sarnie? Do you think that something like I described wouldn’t cause a rejection? Everything else on my credit report looked ok and my credit score was actually higher than my wife’s, who secured the mortgage on her own.

I was THIS close to pleading for your help yesterday!!!!!

I ended up being rejected by Halifax and Natwest. Current lender Santander said credit report was fine, but as they don’t like contractors that much we had to move away

Why would the PCP agreement show as in an arrangement?

"On 25/8 I bought a bmw, part exed a Peugeot which had finance in it. BMW dealer settled the finance 5/9."

Looking at the dates...….was there a payment due between 25th August and 5th September, that you didn't make, possibly because you thought it had been paid off by the BMW dealer when you bought the car on 25th August?

[Rick101]

MOBB said:

TLDR check your bloody credit reports, the actual data not the score!!

Good advice. I spent quite a bit of time making checks prior to a mortgage application.
When the time came, it all went through very quickly and without a hitch.

Time well spent.

[geeks]

Sarnie said:

MOBB said:

In what way Sarnie? Do you think that something like I described wouldn’t cause a rejection? Everything else on my credit report looked ok and my credit score was actually higher than my wife’s, who secured the mortgage on her own.

I was THIS close to pleading for your help yesterday!!!!!

I ended up being rejected by Halifax and Natwest. Current lender Santander said credit report was fine, but as they don’t like contractors that much we had to move away

Why would the PCP agreement show as in an arrangement?

"On 25/8 I bought a bmw, part exed a Peugeot which had finance in it. BMW dealer settled the finance 5/9."

Looking at the dates...….was there a payment due between 25th August and 5th September, that you didn't make, possibly because you thought it had been paid off by the BMW dealer when you bought the car on 25th August?

Sounds like that was the problem to me as well, chopped my last car in with a tiny bit of finance left, dealer due to pay it off but in between was a finance payment, called finance company and asked if i should cancel the DD they said no as it will go down as a missed payment, basically they refunded the payment to me once the dealer settled the finance on it. Sounds like the OP cancelled the DD before it could be taken resulting in a missed/late payment.

Although one missed or delayed payment if everything else is fine seems unlikely to see you nerfed for a mortgage though. Sarnie will know the answer there better than I in reality..

[Sir_Dave]

MOBB said:

On 25/8 I bought a bmw, part exed a Peugeot which had finance in it. BMW dealer settled the finance 5/9. Is this reasonable?

Id say you probably had a payment due before the 5th which wasnt paid (you probably cancelled the direct debit), so the credit report is showing AA, ie Account in early arrears (1-2 months late). Very naughty for BMW dealer not to settle the finance on or around the day you bought the car really, over a week later is pretty poor, using your money is probably cheaper than their stocking facility i guess ...

What to do about it? No idea, over to Sarnie.

[MOBB]

Whenever I trade in a car I usually don’t cancel the DD, however it’s the most obvious cause that I can see so I will have a look back to see if it explains it