There are around 640,000 people who are listed on a scheme database making it hard for them to apply and be approved for any form of secured loans or mortgage. This database is a fraud prevention register that is owned by banks and building societies that blocks borrower from securing loans and mortgages regardless if they are aware or not that they are among the thousands of people in the said database. The National Hunter database was established by some lenders in the year 1993. The main concern of this organization is to prevent fraud. The lender who has any concern on the application of their customer can register them on the said database. These lists could be viewed by over 50 member organization.
At present, there are about 640,000 entries that are listed in the database. What is upsetting is that the companies are not required to inform their customers when they are being listed. Those who are listed will remain in the database for six years. But unlike other credit history reference agencies, this doesn’t contain details about scoring records, copies of County Court Judgement, electoral roll information and other credit histories like guarantor loans and the likes.
Those borrowers that have been flagged on the list will find it very impossible to secure any kind of mortgages like those of secured loans. If customers ask to check if they are among the block listed, the National Hunter will allow them to see the list for £10 fee. But the thing is, they will not offer any dispute facility, those unhappy customers will be referred back again to their lender and it is up to the lenders decision if there will be any reconsideration or not.
Alex Helmore, One Telegraph reader found that he was unable to secure a mortgage after he has been listed by Accord Mortgages in the database. Mr. Helmore works at a boarding school and he also stays in the site. He decided to buy a home and leave the school’s ground. He and his wife has found a perfect place to move in which is near his working place and made an offer to the seller which the latter accepted. The property needs some renovation so they plan to do so before transferring in the place.
Mr Helmore applied for loan with accord which is a part of the Yorkshire Building Society group. Helmore’s application was accepted and the examinations were carried out with a completion date which is set last September. However, the company withdrew the offer after the solicitor of Mr. Helmore check whether the loan was buy-to-let mortgage or a residential. This concerns the agency about the real plan of Helmore because most of the residential mortgages don’t allow let property.
Mr Helmore together with his solicitor made a letter to Accord for confirmation that the latter really plans to live in house but the lender refuse to consider the offer. Due to this, Holmes applied to other company but was also experience the same issue. Later through deep digging they learn that he was listed in the fraud database of the National Hunter by Accord Company as a “hidden buy-to-let customer”. Because of this, it is hard for the latter to secure any kind of loan. On the later part, reviews has been made and decided to remove his name from the database completely.
According to the spokesman of Yorkshire Building Society “As a responsible mutual organization, we have a duty to ensure that members’ money is lent in a secure and sustainable way, without exposing the Society to avoidable risk. We therefore take any inconsistencies in mortgage applications seriously and we only lend to borrowers when we are certain that their intentions are as stated on their mortgage application.”
Barry Brennan, the managing director of National Hunter said that it is not up to the register to make decisions regarding the validity of a customer’s entries. He said, “The data is owned by the members,” he said. “We don’t have the ability to change the data in any way. We simply carry out an administrative function.”