Obtaining a mortgage after accounts are settled?

millsy83

Not sure if this is the right place to post this?

My story in brief;

At the age of 18 I foolishly ran up £22k in debt, starting with a loan for a new car, then credit cards, then loans to clear the cards and so on and so on.

Very soon I was in over my head and I made the decision to try and get it sorted.

I searched around for my options, spoke to CAB etc and finally settled on working with payplan with an IVA.

needless to say over the past 6 years since 2005 when I started this process, I've had the stress and worry of paying these debts off.

In the last two months I have managed to pay the 2 final settlement figures and settle with my 8 creditors.

To say I'm relieved is an understatement, it feels like a huge burden has been lifted and to be honest it has.

Now I'm in the situation where a lot of my original defaults are nearing there 6 year mark on my credit report, except 2 of them (Barclaycard and Capital One which were updated at the end of 2009), I need some help as I will be looking next year at trying to obtain a mortgage with my fiance, I was advised by Payplan that because the defaulted accounts will show as settled they shouldn't have an impact on obtaining credit/mortgage etc?

Is this true and if not, what advice could people give to try and obtain a mortgage?

Thank you for reading.

Nick

DVardysShadow

Settled defaults don't look so good these days when lenders can pick and choose borrowers.

You need to take a look at when you actually defaulted on those accounts - if it was before 2009, the account information should reflect this accurately. And I believe that you can only have a default put on your record if a proper default notice was served - and within a certain period.

millsy83

Thanks for the reply,

I defaulted on all the accounts back in august 2005, a couple of them don't show the defaults until the beginning of 2006 and the ones I mentioned above were when the accounts were passed to debt collectors from what I can make out although the original default notice for them was back in 2005/early 2006?

millsy83

Reading through the site, is it feasible that I could go to whoever issued the default notices back in 2009, 4 years after the original default, and get them to put the date right e.g 2005?

chappers

Absolutely, there are proper rules and timeframes for applying defaults, also there are lenders out there who will take aview on settled defaults, you need to speak to a whole of market broker.

DVardysShadow

chappers wrote: »

Absolutely, there are proper rules and timeframes for applying defaults, also there are lenders out there who will take aview on settled defaults, you need to speak to a whole of market broker.

I agree too about the lenders. A default from 2005 or 2006 which is marked settled and clear after that looks a whole load better than one dated 2009 - it shows 5 years of good performance having learned your lesson. But a default from 2005 or 2006 will be off the radar soon

millsy83

Yeah this is my problem, apart from these two at the moment the last one to drop off my report would be 1st of April next year which would coincide perfectly with wanting to obtain a mortgage etc.

Chappers- is a whole of market broker the same as an independent mortgage advisor?

How would I go about getting the default notice dates put right? there's so much conflicting information on different websites and I'm now lost!

I do hope that there some lenders that will take a view on settled defaults if I can't get these other two removed. lesson learnt! don't abuse credit!

millsy83

Just to add a bit of information about the 2 offending accounts.

Barclaycard -
Special Instruction Indicator: Arrangement
Special Instruction Start Date: 01/04/2006
Special Instruction End Date: 01/10/2009
Defaulted On:13/10/2009

Capital One -
Special Instruction Indicator: Arrangement
Special Instruction Start Date:01/03/2009
Special Instruction End Date: 01/04/2009
Defaulted On:27/04/2009

The Barclaycard one looks as if the arrangement ended and they stuck a default on it, despite continual payments from 2005 until just last week.

The Capital One account looks like a similar situation but the special instruction start date should read august 2005 or thereabouts for the default start?

Looking through my payplan creditor history it doesnt show any change of creditors e.g to debt collectors etc anywhere near those dates. although I think the Barclaycard one was passed back to BC at some point possibly in 2009.