Morgage V debt

AberdeenKev

Hi all

Just registered today and hoping someone can help me out. I'll try and keep it short and sweet.

When i was at uni i racked up just under £2,800 in debt, to a bank (overdraft) and 2 credit card companies. Basically i ignored there letters and had debt collectors letters (in the hundreds) sent to me. However i went off to work in USA for a year and when i came back i moved in with my girlfriend at the time. Now im 31 and a lot more responsible, make a decent salary £26,000 and in a position to pay the debts off as i now want a morgage (tired of throwing away money leasing flats)

When i contacted Experian about my credit report they advised me that the debts were about to be taken off my report due to the 6 year time limit (one in July 2007 & the other 2 in November 2007)

So i guess my questions are as follows

1 ) Is it worth paying the debt as they will be taken off my report and i'll get the chance to make a fresh start

and 2) How easy/complicated will it be in getting a morgage with my past history. Does anyone know the process that happens when people who have been previouly blacklisted apply for a morgage.

I hope the above is clear and i would really appreciate your comments/suggestions.

Cheers
Aberdeen Kev

JoeK_3

Go for it after November 2007.

JoeK

toltec_2

Congradulations, I take my hat off to you. Now sit down and shut up!.... till November.

What's happening is the statute of limitations. After 6 years the loans company cannot use the law to pursue the debt. You still owe it, just they can't use the law any more to recover it from you...... Unless you re-activate it by acknowledging it. Ie: admiting to it, contacting them asking about it, responding to one of their letters, allowing one of their debt repayment advisors into your living room or they have previously obtained a CCJ against you.

Otherwise you're in the clear. Technically it shouldn't hurt your chances of getting a mortgage. In reality................... !?!?!

I had a case 2 weeks ago where a mortgage was turned down in mid-process because despite the Experian and Equifax reports showing the client had squeaky clean credit, the lender obtained from 'another source' they had been telling porkies and made Jeffrey Archer look like mother Theresa. (though the bad debt the client had was not remotely similar to your case).