Mortgage Default Recorded

mackers8923

Hi

My mortgage company had recorded a default on my credit file for hitting a high end of arrears approx £1100 back in 8th May 2007. To that end I have managed to clear all of the arrears since then and made full and proper payments on time for the past 8 months without fail.

The only difficulty I have with the default is that my credit file does not show that for the past 8 months I have had no arrears and made payments on time. Does this not have an adverse effect on my credit rating?

I tried to argue back in 2007 that a default should not have been recorded in the first place, they never tried to take the house off me or anything and actually were quite good in allowing me time to make varied payments as and when I could so it came as a shock when the default was recorded.

I know that I could obviously show any new creditors a copy of my mortgage statement but I'm wondering if there is anything else I could do to try and get the mortgage company to remove the default given that I have finally got everything sorted with them and maintained it for a good 8 months in fact 9 months on the 23rd of this month!!!

Trying_to_be_good

Unfortunately the default is technically accurate - you were in arrears when it was recorded, but have done well to sort it out now. It shouldn't now show that you're behind on this month's paymetn if you're now up-to-date.

You could add an explanatory note to the entry, but other potential lenders are entitled to know you fell behind on this one.

Mrs_Bumble

The mere fact that you were in arrears with your mortgage would show on your credit file and so even if you do get them to remove the default, your credit file is still affected as lenders do not like mortgage arrears.

The lender should have notified you of the default at the time, and will usually only add the default if an agreed arrangement is not maintained.

mackers8923

Trying_to_be_good wrote: »

Unfortunately the default is technically accurate - you were in arrears when it was recorded, but have done well to sort it out now. It shouldn't now show that you're behind on this month's paymetn if you're now up-to-date.

You could add an explanatory note to the entry, but other potential lenders are entitled to know you fell behind on this one.

You confirm what I had thought at the time its just a shame that a blip can ruin you for so long i.e 6 years.

Mrs_Bumble wrote: »

The mere fact that you were in arrears with your mortgage would show on your credit file and so even if you do get them to remove the default, your credit file is still affected as lenders do not like mortgage arrears.

The lender should have notified you of the default at the time, and will usually only add the default if an agreed arrangement is not maintained.

I never broke the payment agreement that was made with them, altered the arrears payment dates by a day or so (After asking them first) here and there but never missed any of the payments and arrears were cleared thats why the default was a suprise with them having been so good to me with the payment plan etc

I wonder after the 6 years will they create a new record and back date it? Long time to wait and see....

Mrs_Bumble

Query it with them in writing then, ask them how it is Treating Customers Fairly to suddenly default you when you maintained the agreed arrangement see what they say.

mackers8923

Hey Hey

Well after making the query and explaining everything yet again both on the phone and in a letter they have just called me to say that yes they are happy to remove the default, update my payment history correctly and in short said that it should have not been put on there!

So scratch one to Roberto hehe its only taken 2 years god know how many letters and emails and phone calls but its a lot better than a 7 year wait for something to go away.....

Mrs_Bumble

Good news then! Well Done!

Do make sure that they follow through though, it costs them to amend the credit file, so ask them to confirm in writing and let you know when they will be taking the amendment action. It will take a month or two after that for the file to be updated.

mackers8923

mackers8923 wrote: »

Hey Hey

Well after making the query and explaining everything yet again both on the phone and in a letter they have just called me to say that yes they are happy to remove the default, update my payment history correctly and in short said that it should have not been put on there!

So scratch one to Roberto hehe its only taken 2 years god know how many letters and emails and phone calls but its a lot better than a 7 year wait for something to go away.....

Quoting my own post by way of an update, well despite all the letters and phone calls the default never got removed.

I then made a phone call last Monday asking why it had not been done, and well suprise suprise the update went through on Friday and my credit file shows the removal of the default and a correct and accurate recording of all my recent payments.

If like me you are trying to get your file correctly updated please please keeping a track of everything, all your letters and phone calls and keep on their back until such time as they fix their error.

Rob