Defaults on Credit File

noofighter

Hi there - I am with Payplan and have been for a good few years. y debt has been over halved in that time with I likely end date around 4 years or so away, when everything will be paid off. I could also potentially look at settling all debt with their settlements team. However, that's just the background - what I would like to know is as I have "defaults" showing (via Experian credit report), what can I do? I want to start looking at moving house and as I have repaid the 'agreed' amounts for so long wondered what options I have, when the defaults disappear, and so on. I have looked around online but cannot find anything specifically. As I say, the defaults are across a few credit cards (myself and my wife), but I have been steadily repaying them via Payplan for years.

Any help or advice is appreciated - whatever my best course of action may be.

~Beanie~

Defaults will disappear 6 years after they were registered. When you mention moving house, do you mean buying or renting?

noofighter

So on the file it's a "0" for "ok", then it's a sliding scale of "1" to I think then "8" being "default". So from the 1st month of registering the "8", it takes 6 years for it to clear? If so, that's not so far away.

In terms of the house, yes, buying. I currently own with mortgage and have a fair slice of equity. Mortgages, however, have changed a lot - even the company I am with no longer provide, as it's now just asset managed. Why do you ask?

Final point - I am considering looking at options for getting a mortgage via a family members small business, is this viable/worthwhile?

Many thanks in advance.

Tixy

It disappears 6 years after the default date shown on the record. Whilst that would usually be 6years after the first 8 is shown it may not necessarily be.

At a guess Beanie was asking because generally defaults cannot be seen on a landlord credit check for renting a property, and so wouldn't affect a person who is hoping to rent a new property.

Ideally if you can wait until the default has gone from your file that would be much better in terms of applying for a mortgage - though if you are still repaying your debt then they will obviously factor in the amount of debt in to any affordability calculations.

If you do need to look into a new mortgage whilst the default is still showing on your files then speak to an independant mortgage broker and make them aware of the default as they will be best placed to try to find a lender who will conisder your application.

The final point - do you mean the small business is a mortgage broker? or are you talking about the small business being named on the mortgage/borrowing the money for the mortgage?

noofighter

Yes, I have a good IFA but fear I will be hamstrung until the defaults go.

Final point, I mean the small business being named on the mortgage.