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Chances of getting a Mortgage

Hi,

So i have an AIP from Halifax, i have been checking my credit rating on CreditExpert and Experian. CreditExpert didn't show anything however, Experian showed three defaults one in July 2003, and then two in November 2003.

I basically got myself into a lot of debt in 2003/2004, and fell behind in payments this has been all but cleared apart from a loan for £2.5k which will be paid off in full before i apply properly for a mortgage.

My plan is to start looking properly for property in December. My questions are, will these three defaults affect my chances for a mortgage, and will these defaults disappear by the end of this year anyway?

Thanks in advance.

Comments

  • benjo
    benjo Posts: 482 Forumite
    I 'think' defaults should dissapear after 6 years, worth checking that they have indeed gone from your file prior to application.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    If you have an AIP from Halifax then I would have expected them to already have credit checked you in the process.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mbynwa
    mbynwa Posts: 788 Forumite
    Part of the Furniture Combo Breaker
    Thanks that is encouraging. With regards to defaults being removed from my credit report, if they do disappear after 6 years is it literally 6 years to the day, or at the end of the 6th year so it would disappear Dec 31st?
  • mbynwa
    mbynwa Posts: 788 Forumite
    Part of the Furniture Combo Breaker
    Actually i got confused reading my credit report, i have no defaults, but i do have three late, will that make any difference to my chances of getting a mortgage. These were in 2003, other than that my credit report is clean with lots of settled accounts from when i was paying off my debts.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    lol late payments are vastly different to defaults! the lenders are unlikely to be worried about anything that was more than 5 years ago.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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