defaults

gazz7878

im busy paying off 5 separate debts which are at debt agencies, i pay monthly standing orders, however i didnt start paying these back regulary until almost a year ago so they have defaults...

i should have paid these full amounts by the summer and was just wondering...will these defaults be removed once the debts have been paid?

as i'm planning on getting a mortgage in about 1 years time....

cheers

Conor_3

Nope. They remain on your account for 7 years. The debts will show as satisfied when they're cleared.

Before you apply for your mortgage, get a copy of your credit report from Experian and Equifax. Then you'll know exactly where you are.

gazz7878

thanks mate...

so if i'm debt free and have the credit report from experian saying that everything is paid but still have the defaults do you think ill get a mortgage ok?

Conor_3

Yes. If it's possible to get a mortgage as a bankrupt, it's possible to get one with a few defaults. You'll have to use a broker and most likely end up paying a couple of percent over the normal rate but you can remortgage a couple of years down the line.

gazz7878

cheers for the help mate...

davek1

for what it's worth i had this problem when i applied for a mortgage and had to go with a "non status " lender stayed with them for a 18 mths after the tie in period and moved house managed to get a mortgage with no trouble from abbey and later transferred to HBOS without any problem. As Conor said you will pay over the odds but you will get a mortgage. Watch the redemption penalties though they can be pretty punative if you try to move before the tie in period. like everythign shop around get a broker to do the work for you but be honest about your financial situation befrehand because if you apply for mortgages that it is unlikely you will get you will end up with extra searches on your credit file making it even more difficult to get a decent mortgage. Dont walk into a high street branch of a lender and dont use estate agents financial advisors. Find a decent independent advisor. Hope it goes well

file_wizzard

Conor wrote:

Nope. They remain on your account for 7 years. The debts will show as satisfied when they're cleared.

Before you apply for your mortgage, get a copy of your credit report from Experian and Equifax. Then you'll know exactly where you are.

Defaults will remain on your file for 6 Years from the date of default, once paid in full they will be marked as "satisfied" which is slightly less damaging to your file / “credit score” and as has been said most sub-prime mortgage lenders will consider your once they are marked as satisfied

roswell

you might be able to get some defaults removed if you lodge a complaint with the credit agency advising they are settled ( a few months after they are settled) they will contact the lender some leave them there others remove them :-)

file_wizzard

roswell wrote:

you might be able to get some defaults removed if you lodge a complaint with the credit agency advising they are settled ( a few months after they are settled) they will contact the lender some leave them there others remove them :-)

Just to clarify it is unusual for the lender to removed the default unless pushed to do so, However it is ALWAYS worth raising a notice of dispute with the CRA's thought as if the data controller ( creditor) fails to respond within 28 days to the CRA then the entry is suppressed form your file i.e is not visible to searches so effectively deleted

Old_iron_balls

roswell wrote:

they will contact the lender some leave them there others remove them :-)

Has anyone managed to do this ?
I have a three year old settled default that I love to get rid of !

file_wizzard

Old_iron_balls wrote:

Has anyone managed to do this ?
I have a three year old settled default that I love to get rid of !

Give it a try see what happens, you have nothing to lose !

raise a "Notice of Dispute" with the CRA's that it is registered with, you will need a valid reason to do this of course, possibly that you believe the monthly reporting history may be inaccurate?

If the lender fails to respond within 28 days the entry will be suppressed