FTB Mortgage AIP and old debt

Experian_company_representative

That's right, lenders use their own internal data to build credit scores alongside the information you give them and the information on your credit report.

While we have to drop defaults after six years, if one or more of the debts you are still repaying are with the lender you're now applying to I'd be amazed if it didn't affect their decision.

There is also a chance, I'm afraid to say, that if they do find out about the DMP and decide your application was deceptive then they could deem this as fraud and add a marker to your credit report, which would be troublesome for you. Perhaps contacting them now and volunteering this information might avoid that?

James

Brock_and_Roll

nope, after 6 years you no longer have to disclose defaults so it never crossed our minds.

That is not strictly true either and depends exactly what questions are asked on the mortgage application form.

If for example there is a question "have you EVER been declared bankrupt or entered into a financial arrangment with your creditors etc etc", then as the Experian representative points our you have potentially committed fraud which even if not prosecuted on discovery, would result in the leder immediately taking action to terminate your mortgage.

libby3589

Brock_and_Roll wrote: »

If for example there is a question "have you EVER been declared bankrupt or entered into a financial arrangment with your creditors etc etc", then as the Experian representative points our you have potentially committed fraud which even if not prosecuted on discovery, would result in the leder immediately taking action to terminate your mortgage.

Nope no questions like that as it would have jogged my memory. Asked if there had ever been any ccj's or bankruptcy which there hasn't been. We'll see. We've spoken to our MB today and he still thinks it might be ok. We asked if we should tell them and he said it's not worth it now as they have the application. And that we can approach other lenders if this gets declined. All very confusing. Think I might just bury my head in the sand until Friday which is when we will apparently be finding out!

ValHaller

Thrugelmir wrote: »

This may be the real issue though.

we've been silly enough to approach the same lender for a mortgage that the debts are with!

As may result in an updated record.

This should not happen to the general Credit references - only to the record with the bank in question. If it did, it would be an abuse of the credit referencing system.

More bothersome is the fact that you must have a deposit for a house - but these debts have not yet been paid back. This rather fast and loose.

Thrugelmir

ValHaller wrote: »

This should not happen to the general Credit references - only to the record with the bank in question. If it did, it would be an abuse of the credit referencing system.

In what way is their abuse?

The credit record belongs to the individual. Only with the individual's permission can it be viewed. If the individual conducts their personal financial affairs in a satisfactory manner then there's no issue. With finance there's rarely a shade of grey. More often or not it's black and white. From a business perspective.

ValHaller

Thrugelmir wrote: »

In what way is their abuse?

The credit record belongs to the individual. Only with the individual's permission can it be viewed. If the individual conducts their personal financial affairs in a satisfactory manner then there's no issue. With finance there's rarely a shade of grey. More often or not it's black and white. From a business perspective.

The Credit Referencing Agencies should not let data on to their systems which is more than 6 years old. The individual's permission does not come into it.

The point is that whatever issues OP's partner has with his bank, although the bank may use their own records over whatever period they hold the information, if 6 years have passed, they MUST NOT pass this information back to a Credit Reference Agency - you seemed to imply thta they might in post #9

nottoolate

ValHaller wrote: »

This should not happen to the general Credit references - only to the record with the bank in question. If it did, it would be an abuse of the credit referencing system.

certainly would be abuse if they did or could. as the previous account in question was defaulted and now dropped off, the lender cannot now enter anything new on it that would appear on the credit file.

thet would not be able to enter a 'mark' in any more general way either

Thrugelmir

ValHaller wrote: »

The Credit Referencing Agencies should not let data on to their systems which is more than 6 years old. The individual's permission does not come into it.

The DMP is current and active. It's not historical. If a lender is flagging the debt owed to them as being in a DMP then it will disappear 6 years after final settlement of that debt.

nottoolate

Thrugelmir wrote: »

The DMP is current and active. It's not historical. If the lender is flagging the debt as being in a DMP then it will disappear 6 years after final settlement on each debt.

if it has been defaulted that is not true. the debt and any previous dmp marker would have been removed 6 years after the default. they are not allowed to add anything else after that.

Thrugelmir

nottoolate wrote: »

if it has been defaulted that is not true. the debt and any previous dmp marker would have been removed 6 years after the default. they are not allowed to add anything else after that.

Defaulted? In legalese any account not paid to the agreed contractual terms is in default. Default is not simply the issuing of a letter or the single marking of a file.

The account will continue to receive late payment markers. Which in themselves are equally as damaging. As these do remain on the file.