Please help so we can move on!

dooney

Hello, please can someone help or advise, my husband and I would like to purchase a house, after discovering our mortgage offer was rejected, we applied for experian report and discovered a default of £5063 on my husbands report. Cutting a long story short he has joint debt of £5,000 with his ex wife this was a loan taken out in 1995. When my huband seperated from his ex wife he sought advice from CAB regarding his joint debt and agreed his payment with the loan company, the account was frozen and intrest was ceased. He has made payment on a monthly basis and never missed a payment so it obviously the ex wife caused the default on the account. We do not know the arrangement his ex wife has with the company regarding her payments. In April of this year the account was took over by another debt company.

Is anyone aware of the effect of credit score if we cleared the debt in full? I am reluctant to pay for my husband and ex wife debt but I am just thinking of alternatives available to us and would we benefit straight away when finding a mortgage. Apparently the debt can't be split between his ex wife so we getting bad credit score due to ex wife defaulting on payment.

Any advise suggestions will be greatly appreciated
thanks dooney

dooney

I have also posted on mortgage and endowenment board, however was suggested to post on here for more specialised help,
dooney

hypno06

Hi there, I am not sure about finding out about the arrangement (if any) with the ex wife, but I am fairly sure that the fact that interest has been frozen, and the account frozen is what will have caused the default - just because a default is registered on a credit file doesn't mean any "new rearranged" payments have been missed, it means that the original credit agreement has not been adhered to.

So, unless the loan has continued to be paid at the rate that was originally agreed at the time it was taken out, the company that lent the money have the right to enter a default on the credit file, which will stay there for 6 years, regardless of what happens after that.

Sorry, I know this will not be what you want to read.

dooney

Hi could I ask some questions please, I am a novice at this I have been brought up with never spend what you can't afford. Please forgive me I dont understand all of the jargon used, someone on other board mentioned offering a full and final settlement? If this happened would it change the credit scoring? does it mean that even if he pays all of his 1/2 it will still be defaulted? My husband has always paid the rate that was agreed with the new company who bought the debt back the one before the one who has just recently took over - Also someone mentioned whilst we were looking for mortgage advice about a possible loophole that could squash the debt?

dooney

bump I have added more question - if anyone can answer
cheers

hypno06

If the account was defaulted, then it will still show that default for 6 years from the date of the default regardless of whether you reach a settlement with the company.

I don't know anything about loopholes.

Mrs_T_5

does any one know about these loopholes they could be useful to me!

thanks
mrs t