How far back do lenders look ?

reapz69

Hi was wondering how far a lender would look back into your credit file ?
for example if u had a very good record for the last 3 years but not so great before that ?

So i guess im asking after how long do missed payments defults etc really effect an application,

i guess there is a cut off like 1 or 2 years etc when a missed payment is less likely to effect a decision .

ACG

They can see 6 years - which is on your credit report.
If you have history with that particular lender then they may be able to see further back on their internal records.

If you tell us what your purchase price is, deposit amount, and what your worried about (ie late payments, defaults, dates and amounts) we can tell you the likelihood of getting a mortgage either on your own or through a broker.

reapz69

ACG wrote: »

They can see 6 years - which is on your credit report.
If you have history with that particular lender then they may be able to see further back on their internal records.

If you tell us what your purchase price is, deposit amount, and what your worried about (ie late payments, defaults, dates and amounts) we can tell you the likelihood of getting a mortgage either on your own or through a broker.

its a new buy so its 75% needed that = 112,500.
i had an experian score of 870 untill a search from the aip showed up and put me down to 857!

The advisor said i passed the credit check for the Promise with flying colours and they would go as high to lend me 200k.

i have a default that is 5.5 years old and a (6) payments late of about 4 years old but since 2009 i have paid everything on time i owe nothing on 1 credit card with a limt of 1k and a overdraft of 600 which i never go into.


its with halifax and from what i have been reading i have come the to conclusion that there aip is very very easy to pass as its a light search.


umber of credit accounts (including those settled)8
Amount of available credit (excluding mortgages) £1,700
% of your total credit being used (excluding mortgages) 0%
Amount of outstanding debt (excluding mortgages) £1,466
Number of accounts overdue 0
Number of missed or late repayments in the last year 0


Default balance was 350 pounds and is showing as settled

6 payments late Settled 24/11/2009 300 pounds

ACG

Your right halifax aip isnt the most accurate.

But i think you will be alright, if you dont pass then there will definitely be options but if your happy with the halifax deal its probably worth sticking with it.

reapz69

So after 2 or 3 years they are not really worried about defaults etc? i mean its a lot better than having it less than 6 months old im guessing

ah forgot to mention 20% of the deposit is coming from the new buy deal

ACG

The older it is the less influence it has, so its not as bad as it could be if it were more recent.

holly_hobby

The amount of deposit, amount and reason for default, how long ago registered, and you now being able to demonstrate a change in financial circs (if default is not a dispute) from then to now - are all influcencing factors.

Halifax AIPs are only public domian info revealling voters roll, CCJs and Banktrupcy orders (which is why a footprint isn't left), so don't reveal defaults, or late payments - they will pop up on application submission and full underwriting, which is why apps, made off the back of a positive AIP, can later fall out of bed. .
.
In this case I wouldn't bother with a Halifax AIP, but submit a full app and hold back on survey until you know the result (or additional UW requirements).

Your adviser will be faimiliar with this and help you manage the application process.

Hope this helps

Holly

reapz69

ok thanks, the adviser has already done the aip and put my default into the system while doing so, he also said i passed with a high grade what ever that means.

btw the aip the search did leave a imprint on my credit file

holly_hobby

If a search record (aka footprint) was left, then it sounds like a DIP (full CRA search) was conducted, and not an AIP (basic public domain search, which doesn't record a search registration).

Anyhoo if you say the lender is aware of and assesssed the DN, with a positive DIP issued, you shouldn't have any later UW issues re this blip.

Holly

reapz69

Well if i look on experian it says i was searched on the same day he did the Aip or dip by royal bank of scotland which is the same as halifax i think


Searched on: 02/05/2013
Searched By: BANK OF SCOTLAND PLC
Application Type: Mortgage Quotation

holly_hobby

Its Bank of Scotland whom together with Halifax were the old HBOS and are now part of the LLoyds Banking Group, NOT RBS whom are a completely different bank, and together with NatWest (& Ulster bank) form the current RBS Banking Group.

Hope this helps

Holly