Defaults - how long?

flowerstar_2

We're about to apply for a northern rock buy to let mortgage and am not sure whether to apply in joint names or sole names.

The reason being my credit record is good but my husband has some defaults dating back on Experian (which according to this website is the credit ref agency that Northern Rock use) the latest being settled in 15/8/01 - although curiously, the records show it last being updated 28/5/02. There are 4 altogether with this one being the latest - they have all been settled and since then we have a residential mortgage with the Portman and a buy to let with Mortgage Express in joint names with a perfect repayment record.

I'd really prefer to do this latest mortgage in joint names (it'll cost us more money to get it transferred when the 6 year period from when a default is settled is up) however, if we're declined - Northern Rock say it will take 3 months before I can re-apply. As our current deal expires we need to get this done A.s.a.p.

Northern Rock themselves are no help when I've called saying we'll just have to 'wait and see' what the underwriters come back with!

What should we do?!!!

file_wizzard

The defaults will naturally expire after 6 years from the DATE OF DEFAULT, the date of last update is for information only.

It may be worth while obtaining both your Experian & Equifax reports as the information between the two may varies

flowerstar_2

So this means...

6 years from the settled date = 15/8/06 is when the default will 'drop off' my credit record.

Question is though, do lenders still take this into account when deciding whether to lend or not? I've heard that there's different levels i.e. CCJs are a no-no for 6 years, defaults are only taken into account when lending after 36 months. Are all lenders different - if so - are there any insiders prepared to list a lenders 'judging criteria'?

Anyone know? I'm sure there's lots of others who are curious about this one!

file_wizzard

flowerstar wrote:

So this means...

6 years from the settled date = 15/8/06 is when the default will 'drop off' my credit record.

Question is though, do lenders still take this into account when deciding whether to lend or not? I've heard that there's different levels i.e. CCJs are a no-no for 6 years, defaults are only taken into account when lending after 36 months. Are all lenders different - if so - are there any insiders prepared to list a lenders 'judging criteria'?

Anyone know? I'm sure there's lots of others who are curious about this one!

1. NO 6 years from the date that the default was issued against the account, this is the point at which the original credit agreement ( contract ) was legally terminated.

i.e the default date could of been 5 years an 11 months ago from today, but if you only paid / settled it today then it would still drop off of your file next month

2. Yes all lenders have different criteria, however as a general rule you will not obtain “main stream” credit for 6 years for the date of a default or a CCJ. ( sometimes a mortgage with your own bank / building society will be evaluated differently if you are a "known customer")

Sub prime lenders have different criteria and are more lenient for an obvious uplift in fee’s / APR rates for the associated “ risk”

eurows

The defaults will naturally expire after 6 years from the DATE OF DEFAULT, the date of last update is for information only.

It may be worth while obtaining both your Experian & Equifax reports as the information between the two may varies

I think you will find that with Experian they expire after 6 years but with Equifax they expire 6 years after settlement.

file_wizzard

eurows wrote:

I think you will find that with Experian they expire after 6 years but with Equifax they expire 6 years after settlement.

Sorry but that is incorect, all entrys should be LEGALY removed 6 years after the original default date, ( the date the CONTRACT was legally terminated) if you do find that any defaults remain "sticky" on your file after this date then raise a notice of dispute and they will be removed.

the*dark*one

flowerstar wrote:

The reason being my credit record is good but my husband has some defaults dating back on Experian (which according to this website is the credit ref agency that Northern Rock use) the latest being settled in 15/8/01

So this means...

6 years from the settled date = 15/8/06 is when the default will 'drop off' my credit record.

Six years from 2001 would make it 15/8/07. Or am I wrong??

Hoep you manage to get things sorted out one way or another.

file_wizzard

the*dark*one wrote:

Six years from 2001 would make it 15/8/07. Or am I wrong??

6 Years from the DATE OF DEFAULT - the date of settlement is for information only