Credit card fraud causing mortgage problems

[MunkeyBoy]

I am going to need to apply for a joint mortgage very soon and was wondering if I may have problems when they come to check out my credit rating.

About three months ago my credit card was stolen and used causing �2550.00 worth of debt in my name. I obviously reported the theft and it is being investigated.

Will this affect my mortgage application? If it does is there a way to explain that it is being investigated at the moment to take it from my name?

This is my 1st time buying and I'm really worried that it's going to affect buying my dream home and am worried they could be investigating this for months and thus holding up my mortgage for months.

P.S. I have phoned the credit card company (Barclaycard) but they were useless and couldn't tell me anything about the investigation! Grrrr

[Oneeyedvic]

get a copy of your credit reports from:

 

www.experian.co.uk & www.equifax.co.uk

this is the same data that the mortgage company will use to offer you a mortgage. If there is a default registered or late payments, then it may aversley affect your offer.

Start there and then come back.

[MunkeyBoy]

Thanks Oneeyedvic. I have already got a credit report from equifax and indeed it does show late payments and a poor credit rating. This is where things confuse me, surely because it is not me who ran up the debt I can take it from my name.

What do I do now I know I have a bad credit rating? Is there a way to ask them to explain my situation to someone to get it changed? Will the mortgage providers understand my situation if I explain it to them?

Help!...

[Oneeyedvic]

Yes tehy will understand. Make sure you keep a copy of all the relevant documents from Braclaycard. Make sure that you put a Notice of Correction on your account. This needs to be concise and to the point. Take advice from a local mortgage advisor. If push comes to shove, your bank should give you a mortgage based on their experience of your account. Otherlenders may take a different view.

 

On the positive side - it is quite out there for mortgage lenders - and they all have targets to hit, so they may be more willing to look at a deal.