Mortgage application rejected - Halifax

Dave3066

Hi Guys

Not sure this is the right place for this but as it's related to a mortgage application I'll put it here. Mods, feels free to move it to a more appropriate place if needs be.

So anyway we had a chat with Bank of Scotland/Halifax about a mortgage as they'd called me to say they had some great deals for existing customers. I've been slowly building up my credit score since my separation and eventual divorce in 2007. I have access to all 3 credit agencies' reports and scores and they are as follows:

Experian: 987
Equifax: 502
Call Credit: 567 (3 stars out of 5)

I have 2 defaults on my credit files from the following dates:

25/1/2007 (default logged and satisfied on this date)
28/4/2007 (default logged on this date but satisfied on 1/6/2009)

I live in Scotland and did at the time these defaults were recorded. My understanding is that these will be statute barred after 5 years? Can someone verify if this is the case please? Can they also verify if the latter default will be statute barred in 2013 or in 2015 as I've read that it is 5 years after the default was satisfied and not after it was recorded?

Bizarrely, all 3 credit files show different results and the only one that shows both defaults is Call credit. Equifax shows one default and Experian is not showing any of them.

My final question is what exactly happens to these defaults when they are statute barred? Are they still there but just not visible, or do they disappear altogether.

I'm grateful for any help with this as it looks like we'll be renting forever at this rate.

Dave

Angry_Bear

Statute barring means that you don't have to pay the debts, as you have already paid them - it doesn't matter to you. What is important to you is that a default will disappear from your credit file 6 years after lodged (not 6 years after it was satisfied).

It's reasonalby common that the credit reports are slightly different as different companies report to different CRAs. The details of your credit report matter, but the scores themself don't mean anything.

Assuming you don't have any other issues, your credit report should be clear by April next year.

I'm not a mortgage advisor but I gather that a couple of defaults so close to "dropping off" your credit report will still leave you decent options.

Alternatively, if you're sure Experian has all your old addresses and still isn't showing any defaults you could look for a lender that only uses Experian (there is a list on this site somewhere - but I don't remember where).

kingstreet

Why are you concerned about statute barring? Are you concerned you'll be asked for money? How can that be if they are satisfied?

Defaults automatically fall-off your credit file six years from the date of registration, so in April next year they will both be gone.

You've said nothing about the likely income multiple you'll need, or the likely loan to value, so it's probably best to simply say your chances of a mortgage will improve dramatically in May 2013.

kingstreet

Halifax uses Experian.

Dave3066

Thanks guys

Well that gives me some hope for the near future then :j

Dave

Cppercy

Was your application rejected at full application or mortgage in principle stage?

Dave3066

Cppercy wrote: »

Was your application rejected at full application or mortgage in principle stage?

Full application. We got a letter from the branch manager stating that the application would not be proceeding.

Dave