Defaults: Can they be cleared early?

glasgow_lad

Hi All,

Newbie here. Basically, I'm trying to get advice on clearing defaults. I realise there are probably a million posts on this subject!

My girlfriend got into a bit of a mess with money (not huge amounts) when she was younger and it's now affecting us.

She was temping at HSBC and got told she had to take out an account while working there. She eventually got into her overdraft - around £200. This account was left open for a while and then two years ago, she had a phone call saying the account was being transferred to a debt collection agency. She offered to pay off the account and was told this would be fine, but due to her job situation, she set up a direct debit to pay it off.

We tried to get a mortgage this year and found out a defualt had been placed on her file by HSBC. She quickly closed the account and made sure everything was paid off. Obviously by this point it had caused problems in the mortgage application. Some one told me that you can write to banks etc and ask for the default to be cleared - but this relies on luck most of the time. Does anyone have any advice about doing this?

We are hoping to apply for a mortgage again next year and would love to have a clear run at it rather than be scuppered by something as trivial as a few hundred pounds.

Thanks in advance!

Tixy

Hi welcome

Usually its very unlikely to be able to get a default removed if it was correctly placed - especially when its by a bank (rather than something like a mobile phone/catalogue etc).
In her case as she was sent a default notice and was unable to pay off in full in the time limit it looks like the default was correctly placed.

Very occasionally people do manage to get them removed - I guess you could try but I wouldn't count on being able to get it to go.

How old is the default? is it showing as satisfied? You should still be able to get a mortgage with a small default that is satisfied and quite old, but maybe not from the main highstreet lenders. You could try speaking to a mortgage broker who should be able to find places that would accept you (although maybe not at the cheapest deals).

chappers

As above.

Is this the only default she has

Most lenders, even high street, will accept one satisfied default.

As Tixy says you could try and get the default removed, but this usually involves requesting a copy of the default notice and them not being able to provide one, and is usually a drawn out process.

xxmatt1980xx

chappers wrote: »

Most lenders, even high street, will accept one satisfied default.

Not wanting to hijack the OP's thread but is this true?

Genuine question by the way, would be interesting to know.

McKneff

Most lenders, even high street, will accept one satisfied default.

:rotfl::rotfl::rotfl:

Its pretty clear you havent applied for a mortgage whilst having a default on your file.

They really are as scarce as hens teeth.

chappers

Actually I have that was my exact situation with Abbey, it was however probably 6 years ago.
My lodger is about to move out and he has just taken a mortgage out with Nationwide with a satisfied default, admittedly his rate was put up 1/4 a percent from that advertised.

I may have been a bit over zealous by using the word most, but there are plenty of lenders out there, including on the high street who will lend with a default.