Problem with getting a mortgage

dee39_2

Can anyone help me????
I am trying to get a "let to buy" mortgage to raise a deposit for a new property that I want to buy. Everything seemed to be going fine until a Credit check was done and a default was found on my credit file, I knew nothing about this until now, apparently I owe a debt company £45 from 2004 for an old mobile phone contract, on discovering this I have now settled this (even though I dont even know what if was for!) as they told me that it would now appear as settled on my credit file, I have now discovered that this is not the case and the default will remain on my credit report for another 6 years after debt settled.
Mortgage company will now no longer agree a mortgage in principle as the default is still there. Does this mean that I cannot get a mortgage due to owing £45 from 2004 that I never knew about??? another Mortgage company has also said that they wont consider me until default is removed - but this wont be for another 6 years - Can this really happen?????

geoffky

afraid so...best trying a whole of market broker who can explain to underwriters

dee39_2

geoffky wrote: »

afraid so...best trying a whole of market broker who can explain to underwriters

Cant believe that I cant get a mortgate because of £45 from 2004,
I am already using a whole of marker broker and I have a letter advising that this is debt is now settled but Mortgage companies not interested as a default is a default! looks like the only alternative I have is to look at rented properties which I dont want to do.

herbiesjp

Depending on the overall scenario, there are lenders that will "ignore" that £45 default from 6 years.

DVardysShadow

dee39 wrote: »

I have now discovered that this is not the case and the default will remain on my credit report for another 6 years after debt settled.

No, it should come off 6 years after the original default notice, which itself must be no more than 6 months after the payments went delinquent.

You have not done yourself any harm beyond the £45 by paying - you should have challenged it! If it is not taken off after 6 years, then challenge this with the creditor and the Credit Reference Agency. If you still have problems, take it to the DebtFree Wannabe section of the forums - they have the expertise on this.

getmore4less

DVardysShadow wrote: »

No, it should come off 6 years after the original default notice, which itself must be no more than 6 months after the payments went delinquent.

You have not done yourself any harm beyond the £45 by paying - you should have challenged it! If it is not taken off after 6 years, then challenge this with the creditor and the Credit Reference Agency. If you still have problems, take it to the DebtFree Wannabe section of the forums - they have the expertise on this.

Does this still aplly to open accounts

nell53

I had a similar problem. I had no idea I had a default notice until I was turned down for a credit card. It was from British Gas when I moved home 3 years before. I paid it off -like you- even though I knew nothing about it, thinking that would be the end of it, but of course it still showed as a default.

Experian couldn't help- said I had to get BG to remove it - and after weeks and weeks of countless phone calls, emails and letters, I managed to get them to do that, so now have a clean record. So it may be worth pursing the mobile phone company.

GMS

If you are looking to do a 'Let to Buy' you have a mortgage now so try your current lender.

A £45 default will be ignored by some lenders so if it is that alone you should be ok.

When was the default put in place? It will be 6 years after this date when it is removed.

Have you got copies of credit reports? If not go on Experian and Equifax websites and get statutory reports. £2 each.

A call to a good broker should be your next step.

Conrad

Let to buy is a difficult niche product. Just stick to an ordinary resi remo or as gms suggests a top up from current lender.

Be aware not all lenders will allow you to raise capital to buy another property so first find out what they allow.

dee39_2

You have not done yourself any harm beyond the £45 by paying - you should have challenged it! If it is not taken off after 6 years, then challenge this with the creditor and the Credit Reference Agency. If you still have problems, take it to the DebtFree Wannabe section of the forums - they have the expertise on this.[/QUOTE]

Thanks for this.

It shows on my credit report that debt is from 2004 then is shows that default was 2007 - this is 3 years! I dont know if this has been on my credit file since 2004 or 2007, I only paid the £45 as I thought this was the easiest option as the debt company told me it would change to debt Settled, they never mentioned that a default will always remain even though settled, they said that if I raised a dispute then default will remain - that is why I paid up and didnt raise a dispute!
I have again contacted the debt company but they are now saying that I cannot raise a dispute because there is no issue with Fraud! I have now asked them to provide me with a breakdown of what this £45 is for! I am waiting on them sending me an e-mail as I now definately want to dispute this! But at the same time I still want to apply for a mortgage now and not 6 years down the line.