what happens after a default?

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costaerer
costaerer Posts: 648 Forumite
in Credit file & ratings
Hi,
I have a default from dec 2010 that im currently on a dmp paying off.
Nothing has been added to the information on that account on my credit file since then.

If for example im still paying my dmp in 2016 when the default drops off what happens?

Im trying to negotiate a full and final settlement at the moment so hopefully it will be settled soon.

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  • costaerer
    costaerer Posts: 648 Forumite
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    i am double confused now, i have just checked on noddle and the same account with lloyds that defaulted is shown twice. the default is current up till now on one, and its up to august 2011 on another.

    Has this ruined my chances of getting a mortgage 6 years after the default was put on, which according to equifax was december 2010
  • matttye
    matttye Posts: 4,828 Forumite
    First Anniversary First Post Combo Breaker Debt-free and Proud!
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    Defaults always stay on your credit file for six years whether they're paid or not.
    What will your verse be?

    R.I.P Robin Williams.
  • MoneySaverLog
    MoneySaverLog Posts: 3,232 Forumite
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    There should only be one default record per account that went into default on your credit file. They can show the account currently in default, but it would be the Original Default Date that would be used for the 6 year marker.

    Satisfied or not a default will affect any credit application you make for 6 years from when it was registered. At which point it will be removed.
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
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    Who reported the other default?

    Sometimes this happens when a debt is sold on. The buyer and seller should agree who updates your report, but the default date should never change. Complain to Lloyds or the current owner to sort it out.
    :beer:
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    costaerer wrote: »
    Has this ruined my chances of getting a mortgage 6 years after the default was put on, which according to equifax was december 2010

    Forget the default, the DMP will impact you likewise. For years after settlement. If you opt for F&F settlement your credit file will show this to. The lenders you default on entirely can be crossed of your list of potential mortgage lenders.

    If you are seriously wishing to obtain a mortgage in the future. Settle the debts as soon as possible in full. Then save with a potential lender for some time (maybe years). While your credit rating improves and the lender directly will also have first hand experience which will count in your favour.
  • MoneySaverLog
    MoneySaverLog Posts: 3,232 Forumite
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    Not entirely I heard the other day of someone who was bankrupt with one particular creditor getting a mortgage with them afterwards when the BR went from the credit file.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    MoneySaverLog wrote: »
    Not entirely I heard the other day of someone who was bankrupt with one particular creditor getting a mortgage with them afterwards when the BR went from the credit file.

    There are many variables to the situation. So better to expect the worse. Than assume that after 6 years there's always going to be a clean slate.

    Criteria for bank lending, particularly mortgages, is likely to tighten even further. Personal loans less so as the margins are far much higher so more room for flexibility. .
  • costaerer
    costaerer Posts: 648 Forumite
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    Thrugelmir wrote: »
    Forget the default, the DMP will impact you likewise. For years after settlement. If you opt for F&F settlement your credit file will show this to. The lenders you default on entirely can be crossed of your list of potential mortgage lenders.

    If you are seriously wishing to obtain a mortgage in the future. Settle the debts as soon as possible in full. Then save with a potential lender for some time (maybe years). While your credit rating improves and the lender directly will also have first hand experience which will count in your favour.

    Thank You.

    I have 4 things being paid on my DMP, 3 of them I have a default on, so on my credit files it doesnt show any arrangement to pay it just shows default. I only have one arrangement to pay showing which is a small amount of £300 ish which i will pay in full sometime very soon. So how is there evidence of a DMP on my credit file?

    How come when the default is given no subsequent payments etc are shown on the account. What happens 6 years after the default is shown? If you have not settled the account does it revert to arrangement to pay? or does the file just drop off if it has been settled?

    By the way im working on a time scale of the default being put on December 2010, paying by F&F or the whole balance mid 2013 and attempting to get a mortgage mid 2017. Is this viable in your opinion?
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