Credit file, old repossesion and mortgage

Moonwax

Hi all

I hope someone can help?

I had a house repossesed back in 2008, and had a shortfall of £50k, but never heard anything regarding paying it back. Yet they were kept up to date with my addresses.
Was going through a divorce then also.
Anyway, i am now looking at getting a mortgage to buy again with my new partner.

I have looked at all 3 credit reports and all are good, with no record of my old mortgage, repossesion or shortfall.......
Am i lucky? Missing something? But i am definatly confused... Its not been 6 years yet!

Advice would be much appreciated.

Thanks.

ACG

I would say hold off buying until its been 6 years.... or use your deposit to pay off the shortfall?

Either way your still going to struggle to get a mortgage with a high street lender, they will ask if you have ever had a property repossessed, as soon as you answer yes theyre going to lose interest. You will either need to lie (which is mortgage fraud) or go via a broker i think.

But yes i would hold off purchasing until its been 6 years.

Moonwax

Thanks for the quick reply.
We are going to save for a year anyway for the deposit, which will take us over the 6 years.
However my response to that question would be yes, BUT it is cleared and no longer on my files. And circumstances have massivly changed for the better.

ACG

Just because its over 6 years does not mean you do not owe the money. If i borrowed a grand off you but didnt pay you back for 15 years im sure you would still say i owed you a grand.

Im not judging, i dont know the reasons and its of no interest to me. My job is to help people like yourself move on with life as best they can. But once you have your deposit saved up, you will struggle to get a mortgage forever more.

That does not mean you will never get a mortgage as im sure there will be options but a 10% deposit wont cut it. I would imagine more like 25-30% and its very unlikely to be at the rates your seeing on the high street - maybe 2-3% above them, possibly with fairly large arrangement fees also.

It might actually be worth a chat with a broker so at least you have an idea of what to work towards and what to expect.

zarf2007

ACG wrote: »

I would say hold off buying until its been 6 years.... or use your deposit to pay off the shortfall?

Either way your still going to struggle to get a mortgage with a high street lender, they will ask if you have ever had a property repossessed, as soon as you answer yes theyre going to lose interest. You will either need to lie (which is mortgage fraud) or go via a broker i think.

But yes i would hold off purchasing until its been 6 years.

Yes because those upstanding financial institutions that never lie or rip off their customers (and then get bailed out by them) would always play it straight with you (PPI, endowment policies anyone?).....I realise you work in the financial services industry but do find it hard to stomach this spouting sometimes.....

I learned a long time ago that if you are 100% honest you get nothing in this life..

If I were the OP I would apply after 6 years and take my chances....I would consider my previous financial issues as in the past and not feel the need to declare them...

I find it hard to stomach that you lecture people about playing it straight with probably the most corrupt system in the world.

guesswho2000

Bear in mind the statute of limitations applies after 12 years for mortgage debt, not the usual six, so they could well still chase you for it.

Moonwax

Ok, just to add, as i forgot to mention.

I did notice it on one credit file a few years back. Not as in arrears but as cleared (settled) with no defaults. Hence why i am confused. It is no longer on any files. So how would they know i had a mortgage in the past?
Obviously i could tell them, but if it is cleared no records etc... Why should i?


Zarf, i like your point :-)

Thrugelmir

zarf2007 wrote: »

If I were the OP I would apply after 6 years and take my chances....I would consider my previous financial issues as in the past and not feel the need to declare them...

I find it hard to stomach that you lecture people about playing it straight with probably the most corrupt system in the world.

Moan about the banks. Then on the other hand you wouldn't play by the rules. You cant cut it both ways. Banks have changed. The sooner people realise it the better.

ACG

zarf2007 wrote: »

If I were the OP I would apply after 6 years and take my chances....I would consider my previous financial issues as in the past and not feel the need to declare them...

Then you would be wrong, as the question would usually say "Have you EVER...." - in which case answering this question as no, is a lie and mortgage fraud.

I find it hard to stomach that you lecture people about playing it straight with probably the most corrupt system in the world.

Where was the lecture, i said he could use his deposit to pay off the debt? If you consider that a lecture you should have lived in my house growing up, if i did something wrong you would be claiming my mum was torturing you!

I play by the rules. I quite like having my licenses needed to trade, if i didnt play by the rules and lost my license i wouldnt have a roof over my head. Next you will be saying all footballers are overpaid gambling addicts who sleep with prostitutes old enough to be your gran...

As i said my job is to help people move on with their lives, but i do it the right way. I get mortgages with lenders who will accept peoples history, i dont lie.

Just because your happy to lie, dont tar everyone with the same brush to make yourself look better - double standards... great eh! Next you will be telling me about your principles.

Moonwax

Thanks but i dont need the arguments etc...

All i want to know is using The system correctly so i can get a mortgage and carry on with my life.

The mortgage company never asked for the shortfall to be paid, it showed on my file as being settled, yet now that has gone off my file completely. There is no record of me being repossesed, or in debt. So if i explained this to a mortgage broker would they hold this against me? If so why tell them when i have no trace of repossesion?

ValHaller

Moonwax wrote: »

Thanks but i dont need the arguments etc...

All i want to know is using The system correctly so i can get a mortgage and carry on with my life.

The mortgage company never asked for the shortfall to be paid, it showed on my file as being settled, yet now that has gone off my file completely. There is no record of me being repossesed, or in debt. So if i explained this to a mortgage broker would they hold this against me? If so why tell them when i have no trace of repossesion?

Just pay back the £50000 and when you are asked if you have ever been repo'd you can say yes, you had a £50000 shortfall and you paid back every penny. No need to lie. You can hold your head high.

What is hard about that?