Credit File - Defaults

preciousb

We are currently looking to move onto the property market and have been checking our credit file as of yesterday properly

I have a few defaults in there that are about 4 to 5 years old now.

Is there anyway i can get the defaults removed?

My other half has a default from 2010 which is not settled. Its a small debt of £190. She did receive notification of this default by letter - If we were to repay the debt fully and request the default to be removed - is this possible?

I have been going through my paperwork which i have kept from years ago but cant see any letter or remember any letter telling me of my older defaults which is why i want to try and see if i can get them removed.

Any advise is appreciated

Thanks

ACG

The defaults will only be removed if they are a mistake - that doesnt mean if you think theyre a mistake, that means if the company accept they have made a mistake.

Ive only ever seen one company remove it but it took about a month of arguments and then another few weeks for it to show as updated.

If you have a 15% deposit, presuming that the only issue you have then there are definitely options available. I would speak to a broker though, as it can be difficult where there are defaults.

preciousb

Thank you

the house we are looking at is a new build of £300k

We are thinking of putting an early bird deposit which gives us time to increase our deposit

Over the next year or we should have a deposit of £50k approx if we stick to our careful planning and keep saving

So with defaults it is still possible to get on the property market but through a broker and a higher rate?

Additionally this would be our first buy - would we be eligible for any scheme from the government?

reapz69

i have been looking into this and it seems the older the defaults are the better your chances are.

From what i have been able to gather i think most lenders are more intrested in the last 3 years 5 year old defaults are near the end.

There is the help to home/first buy currently halifax are the only ones offering these.

An example.

Help to Buy is available to all new homebuyers, not just first time buyers.
You only need a minimum 5% deposit to qualify
The Government will lend you up to 20% of the value of your property through an equity loan
The loan can be repaid at any time or on the sale of your home
You will only need to secure up to a 76% mortgage from a bank or building society
Help to Buy is only available on new build homes
There is a maximum home purchase of £600,000
Only available on new homes in England


Worked example based on a £120,000 purchase price
You arrange mortgage (76%) £91,200
Deposit (4%) £4,800
Government equity loan (20%) £24,000
Total Purchase Price: £120,000

ACG

The lenders i know of who disregard issues beyond 2 years do not deal with the govt schemes, so you would need a minimum 15% deposit.

The rates are currently below 5% so theyre not too bad considering. But between now and when you purchase the anything can change.

Thrugelmir

preciousb wrote: »

My other half has a default from 2010 which is not settled. Its a small debt of £190. She did receive notification of this default by letter - If we were to repay the debt fully and request the default to be removed - is this possible?

There's no turning the clock back. Too late to erase the record.

Settle the debt as quickly as you can. As otherwise may impact your mortgage application.

preciousb

With first time buy government scheme - If we were to apply sooner then trying to build approx 50k and it didnt go through - how long would you leave it to apply again?

I am worried if i did attempt the mortgage application - would it hamper future applications if the first one failed?

billchecker1

ACG wrote: »

The lenders i know of who disregard issues beyond 2 years do not deal with the govt schemes, so you would need a minimum 15% deposit.

The rates are currently below 5% so theyre not too bad considering. But between now and when you purchase the anything can change.

Sorry to go ff topic. But which lenders do you know of who disregard issues over two years old?

I am in the position of being able to apply for a mortgage (my second). I want to add the wife to it in order to get a higher amount, however I know that she has some defaults (I assume that default means late payments?) on catalogues. I think the last one was in 2009 but really need to get all the credit reports in first.

Thanks