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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi, we took a mortgage holiday which has now led to defaults

Customer Question

Hi, we took a mortgage holiday which has now led to defaults on Experian file. We have actually sold STC our house after receiving details on a new mortgage from a different lender. The holiday was bona fide and within terms of motgage. Now been told they will not remove it from our file and so we have lost 2 potential properties. We earn more than enough to cover new mortgage and have 40k deposit now from equity. The bank are telling us it would be unconscious able for them to remove it. Was this a term which should have had caveat emptor next to it with a big red hand, or can we act against them? We are meant to be exchanging in 8 weeks!!
Submitted: 3 years ago.
Category: Law
Expert:  LondonlawyerJ replied 3 years ago.

LondonlawyerJ :

Hello I am a solicitor with over 15 years experience. I am afraid that if by mortgage holiday you mean you stopped making payments on your mortgage, even with agreement,then this bound to haveanadverse effect on your credit rating. I doubt there is anything you can do about it.

JACUSTOMER-pymb4iy5- : There is currently a test case going through because tesco and other banks offered this and declared no adverse affects because it was an express term within the contract only to cause derogatory affect on experian. We met the criteria and opted to make use of it on the basis it was added to the end of the mortgage term. It was a miss sold product and one they have admitted fault on. I'm just trying to make them commit to removing it off the file which they agreed to do and has been documented it was an error on the bank.
JACUSTOMER-pymb4iy5- : Thanks for for the above. It was totally not worth the £36!! Lesson learnt.
Expert:  Ash replied 3 years ago.
Hello my name is Alex and I will help you with this.

Were the default because of the payment holidays or after the payment holiday please?
Customer: replied 3 years ago.
Because of it. They said it would not affect credit score because it was something they offered and in place then it came up as default
Expert:  Ash replied 3 years ago.
Default or missed payment? Are payment holidays part of the agreement, ie are you entitled to them?

Customer: replied 3 years ago.
Late and yes part of agreement. Bank statements prove the mortgage went out on first working day of the month every month and has done for past 7 years with the exception of the holiday
Expert:  Ash replied 3 years ago.
So it's not the one missed payment showing or more?
Customer: replied 3 years ago.
If you mean is there one or more there are more. They marked it as late because the amount was outstanding. We can prove BT bank statements it was all on time. They are still advertising mortgage holidays on their website.
Expert:  Ash replied 3 years ago.
Ok. But there is a payment holiday so you missed a payment?

But you are saying this is allowed by their terms.

Customer: replied 3 years ago.
Yes it was allowed and agreed in advance
Expert:  Ash replied 3 years ago.
Ok, if it is allowed and it was with permission then they should not register a default - you are acting in accordance with the agreement.

Section 14 of the Data Protection Act states:

(1)If a court is satisfied on the application of a data subject that personal data of which the applicant is the subject are inaccurate, the court may order the data controller to rectify, block, erase or destroy those data and any other personal data in respect of which he is the data controller and which contain an expression of opinion which appears to the court to be based on the inaccurate data.

(2)Subsection (1) applies whether or not the data accurately record information received or obtained by the data controller from the data subject or a third party but where the data accurately record such information, then—

(a)if the requirements mentioned in paragraph 7 of Part II of Schedule 1 have been complied with, the court may, instead of making an order under subsection (1), make an order requiring the data to be supplemented by such statement of the true facts relating to the matters dealt with by the data as the court may approve, and

(b)if all or any of those requirements have not been complied with, the court may, instead of making an order under that subsection, make such order as it thinks fit for securing compliance with those requirements with or without a further order requiring the data to be supplemented by such a statement as is mentioned in paragraph (a).

You can apply to the Court for an Order that the credit file is corrected.

You need to write and give them 14 days to do so or you will go to Court otherwise. Send this by letter and make sure you send a copy.

If they refuse then you can issue proceedings using form N208

The Court will list the matter for hearing and decide whether to make an order.

Can I clarify anything for you about this today please?

Expert:  Ash replied 3 years ago.
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