First time mortgage application

BaroN81

Hello everyone,

This is my first post on the site and it should have been earlier as I'm at a lost to proceed.
I’ve recently had a CCJ expire from my credit file as of the 31st of August 2011 (unpaid water bill ) my credit rating instantly jumped from a 1 star to a 3 star on the credit scoring system used by checkmyfile.

I have 3 bank accounts with the same lender(natwest), 1 current gold and 2 savings and 2 39% credit cards with balances not over £250 and get cleared every month and I haven’t been late or missed a single payment on anything in 4 years.. So I was very shocked when I found I couldn’t get a £50 overdraft with my own lender online this morning? Do the banks not have instant credit agency info or do you have to wait a while? For the bad debt to register with them?

My real concern despite the recent good credit history and recent clearing of CCJ footprint is that I have had 2 loans from 2000 with Lloyds tsb that fell into a bad state and became defaults and were passed to a debt collection agency for which I have been paying for ever since and I have never missed a payment with them or been late, these no longer show in my credit score across all 3 agencies but when I come to a mortgage application am I going to be stuffed because I have this 7-8k of debt at £100 PM that doesn’t show on my public history but maybe blocking any applications at the moment?

I have tried to trawl google for answers on this but most info seems to point towards people not realising a settled debt stays on the credit file for 6 years etc.

If anybody is able to help me understand if this very old non showing debt is going to prevent me acquiring new credit in the future and get on with my life without 39% credit cards I’d be eternally grateful.

Regards

BaroN

Thrugelmir

All major lenders share data through an organisation called NationalHunters. So you'll be on file there.

You need to clear your debts before being considered for a mortgage.

I assume that you have savings to buy a house. So why don't you clear your historic debt and learn to live within your means. Not a criticism but the way a lender will view the situation.

BaroN81

Thank for the reply.

Having looked into them and their site it also seems to show 6 years is their data retention period? so as with the other 3 agencies not reporting the 10 yr old loans would it not be the case for them to unless they have something different to what they anounce publically?

The loans from 2000 were for 5k and 2k and have somehow cost me £100PM since then so must have been a lot of interest! my reason for saving for a house and not paying that debt back much quicker, is that wasn't earning me any interest but the savings were.. I naievly though with a set monthly fee and no hassle from the lenders/debt agency they would let me be, the money earned from the savings would then enable me to get a mortgage/house and be able to pay of any remaining credit after we are in a properly and not giving money away in rent.

Is this something that will not happen at all and I'd have to repay something that isn't showing on any credit agencies reports and isn't costing me a great deal per month? and won't hurt any affordability calculations?

I'm open to suggestions and will be requesting a report from this 4th secret agency!

Cheers

holly_hobby

CRAs will retain records of satisfied debts (i.e fully repaid) and registered defaults, CCJs, bankruptcy orders for 6 years from the date of redemption (in the case of repaid finance) or registration date of the adverse data (repo info is slightly different).

Once the 6 yr period has elapsed the data should automatically "fall off" your record a little while after (it is always wise to check this has happened, and if it hasn't chase the CRA to amend your file).

AFAIK - The only exeption to this is in respect of unsatisifed CCJs - whereby as an unsatisifed court order made and registeredon behalf of the Original Crditor (OC), the OC may reapply to the courts to have the unsatisfied order re-registered (now this does not always happen, is not always successful, but stated as to explain debt management processes).

Have you obtained a copy of your credit record from such CRAs as experian and equifax - who offer an on line service ? What did they show ?

Have you actually applied to any lender to see what the credit checks with them reveal ?

Hope this helps

Holly

Thrugelmir

BaroN81 wrote: »

Having looked into them and their site it also seems to show 6 years is their data retention period?

Are you repaying the bank or has a debt collector bought the debt?

Do you still owe £7 - £8k ?


Personally I would stop worrying about credit agency reports and resolve the matters you can easily address.

ACG

BaroN81 wrote: »

Thank for the reply.
Is this something that will not happen at all and I'd have to repay something that isn't showing on any credit agencies reports and isn't costing me a great deal per month? and won't hurt any affordability calculations?
Cheers

Just because it isnt showing doesnt mean it shouldnt be repaid.

Ask your bank why they rejected the overdraft. If they tell you to get a copy of your credit file (which they most likely will) tell them you have. You cant see anything.

They will most likely ask you to send it in. They will then either manually override the decision or stick by it - If they carry on declining it then you can usually get a reason off them.

holly_hobby

Whether the defaulted debt is under a repayment plan or not - the orignal default record will fall off in line with 6 yr period.

However, you should check with your CRA records that the DCA themselves haven't also registered their own DN on the same debt on their purchase - which this record not falling off until the 6th anniversary of its DCA registration.

If that is the case, take the matter up with the CRAs, DCA and OC - as you can may not be defaulted twice for the same account. You will probably find that the OCs default is removed, and the DN with the registered owner is retained.

Answer is ... get a copy of your records to see what the situation is, then we can give advice on what we are actually dealing with.

Hope this helps

Holly

HappyMJ

I wouldn't worry too much about overdrafts. I have never had an overdraft approved. I'm in my 30's had mortgages approved with no proof of income, I've had credit cards with huge limits given to me and all the bank gave me was a £1 overdraft.

BaroN81

Thrugelmir wrote: »

Are you repaying the bank or has a debt collector bought the debt?

Do you still owe £7 - £8k ?


.

I have been paying a debt collector since 15 december 2008 called credit Security on behalf of lloyds TSB, Prior to that I was paying a debt managment agency called harington brooks who I mistakenly thought were helping me out when I got into trouble years ago, I swapped to paying the collector on my own as harington brooks were charging 20% to hand money over!

Holly,

Thanks for the Info, there is nothing at all showing as bad debt on my 3 credit searches from checkmyfile,

Apart from I am aged 29! I have 4 clean accounts on electoral roll and no CCJ's as positive.

I have since learnt that a mortgage lender will take my monthly payments towards debt mutiply by 12 and take off my salary to work out affordability and they can't search more than 6 years back!?

Cheers.