I have a default but can I be economical with the truth

gareth030981

Hi there everyone.

I applied for a mortgage last week and the DIP was passed. I then provided all detailed information to my IFA wo submitted a formal application to the lender but they came back and declined with a default showing at a previous address. I put down 3 addresses within a 3 year period but there is actually another address that I can add it from when I used to live with a partner. I was on electoral roll there too. I dont normally supply this address as I dont like to but in this case if I was to supply this address it would mean that the "bad" address would fall outside of the 3 year scope the lenders request.

What I would like to find out is do you think that the underwriters will still be able to find this default if I only supply them with the 3 years addresses they needs. The addresses I would then supply would actually cover me for nearly 4 years.

What are you thoughts?

I appreciate this is not the best thing to do but my partner and I really dont want to lose the house we have our hearts set on. I honestly knew nothing of this default but I have been advised to leave it now as its soon to be statue barred and will drop off anyway but not in time for the mortgage application.

Thanks everyone and have a great day.

Mrs_Bumble

A credit file shows all linked addresses so it follows your trail back, so in all likelihood they can see where you have lived for the last 5 years. Often people leave addresses off that they think underwriters don't need to know about but one address links to another if you have been on the electoral role and had credit registered at the address.

How much was the original default?
When registered?
Is it settled? If so when?

If you really want the property then get a copy of your credit file and give it to the broker so they can if possible place the case appropriately.

gareth030981

Hi Mrs Bumble

Thanks for your reply.

The default was for £849 but that wont matter to the lender anyway and we know this is why is was declined.

I already have a copy of my credit file and our IFA has reviewed it.

My credit profile (Credit Expert) allows me to add/remove previous addresses and if I remove the address in question...ta..da...the default is gone. I know about the linked addresses part but what I am trying to ascertain is the likelyhood if the underwriter searching the 'linked' addresses as well as the addresses I supply on the application form.

Thanks again for replying.

Mrs_Bumble

The underwriter looks at everything. Very often looking at a system that feeds back both credit reference agency reports.

By lying about the default you are in effect committing fraud, as you are lying in answer to the question about previous credit history, you can't say you didn't know about it because you already have one mortgage decline because of it. So the lender at that point can file a warning on CIFAS for mortgage fraud, your chances of obtaining any credit then will be zero.

The default was for £849 but that wont matter to the lender anyway

Why?

Your best chance is to find a more sympathetic lender?

Which lender has declined?

Incidently is that your date of birth??

gareth030981

Hi Mrs Bumble

Thanks for your reply.

I appreciate what you're saying. We have been told by someone at the lender that if we wait X days our original application will be deleted and to then reapply. I'm afraid I cant tell you who the lender is in case it harms my chances.

The reason I said it wont matter to the lender is that if there is a default, chances are they will see this as a bad comittment to finance and will not over rule it. We were told that the only way they would approve is if the default was not mine/erronious information which it is not.

Thanks for comments.

gareth030981

No its was the day I got married. :-0)

Mrs_Bumble

Excuse me someone at the lender has told you that the original application will be deleted from the system and to reapply? The underwriter will still see the original credit search that was made by them how is everyone going to explain that one?

Proceed with caution then because as I said it could be seen as fraud. If you get a CIFAS warning then you will be completely stuffed! If this scenario came across my desk with a request to play it this way I would send you on your way, wouldn't want my name associated with the application at all.

gareth030981

Point taken.

Thank you for your making me aware of the CIFAS thing.. I'll be on my way then. :-)

Have a nice day and thanks for talking to me.

Mrs_Bumble

No worries:)

Good luck:)

gareth030981

Thank you kindly ...cheerio :-)

FraudBuster

Be aware:

Anapplication is made and the applicant deliberately fails to disclose previous address information [FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]as they have adverse financial information present at that address which would prejudice the [FONT=Arial, Helvetica, Geneva, Swiss, SunSans-Regular]chances of the application being successful.[/FONT]

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