What to do?

meow-im-a-cat

Hi all, looking into getting a mortgage in the next 6 months, deposit just hit the 5 figure mark, however I have overlooked something very important, my rather poor credit history! I am going to pay the outstanding balances below in the next month or so, but how is the best way to deal with the aftermath of being debt free, but full of defaults?

HFC BANK PLC | Credit sale | Default | Satisfied
BANK OF SCOTLAND | Credit card | Default | Satisfied
HALIFAX CARD | Credit card | Default | Satisfied
O2 | Satisfactory | Settled
O2 | Satisfactory | Settled (No idea why I have two, but they are green on my experian credit report so I guess there ok?)
LOWELL PORTFOLIO | Default | £65 <- No clue what this is for!
EQUIDEBT LIMITED | Credit card | Default £1,192 <- These people would have been paid by now, but they were horrible, they threatened half my family :mad: so I refused to pay them the full amount (regret it now, but what is done is done)


So I have two outstanding debts, think they will agree to remove the defaults if I pay them in full? or is it wishful thinking? As for the other three which are paid/settled any and all advise would be great and very much appreciated!

Cheers :j

Edit: BTW, anyone know why my credit rating is 990?! lol

Tixy

How old are the defaults on you file? and what are the default amounts? smaller older settled defaults have more of a chance of being tolerated by a mortgage lender than larger, recent ones.

In terms of a mortgage - will this be your first mortgage, you don't have one currently?

Have you spoken to a mortgage broker at all yet, with a copy of your credit file? I suspect that given the number of defaults you would be needing to look at subprime mortgage lenders, who obviously don't offer the best rates and they tend to require a higher % deposit than mainstream lenders.

If you haven't already I'd also suggest getting copies of your credit report from each of the 3 agencies, not just one (you don't need the version with a score, just the basic statutory credit report).

rising_from_the_ashes

meow-im-a-cat wrote: »

HFC BANK PLC | Credit sale | Default | Satisfied
BANK OF SCOTLAND | Credit card | Default | Satisfied
HALIFAX CARD | Credit card | Default | Satisfied
O2 | Satisfactory | Settled
O2 | Satisfactory | Settled (No idea why I have two, but they are green on my experian credit report so I guess there ok?)
LOWELL PORTFOLIO | Default | £65 <- No clue what this is for!
EQUIDEBT LIMITED | Credit card | Default £1,192 <- These people would have been paid by now, but they were horrible, they threatened half my family :mad: so I refused to pay them the full amount (regret it now, but what is done is done)


So I have two outstanding debts, think they will agree to remove the defaults if I pay them in full? or is it wishful thinking? As for the other three which are paid/settled any and all advise would be great and very much appreciated!

Sorry but with a total of 5 defaults on your credit file I would suspect your chances of getting a mortgage would be ... slim - at best.

The outstanding ones need to be settled ASAP if you can (however, if they're due to drop off soon you may decide to take your chances and leave them), for any chance - what are the dates of them? If they are due to drop off soon, then you may be lucky.

As for having them removed - unless they were issued in error (and you can prove this) then this is also really unlikely to happen. The information is on your report to show a true reflection of how you manage the credit agreements you've entered into - if you've not stuck to these (resulting in the defaults) then there is no reason for them to be removed.

Keep saving and hopefully they are due to drop off soon and things will look much better.