Advice much appreciated for newbie.

Gymrat79

Hi All,

Basically I have recently moved back to the UK from Europe and wish to get my finances in order.
I went through a bitter divorce 4 yrs ago and at the same time had the news my mother was terminally ill , so I sold my house at a huge loss and up and let the country in a matter of weeks. However I lived on my cards to get by and also helped pay for some of my mothers treatment in Europe.
I am now back in the UK with a new partner and my first daughter.
I owe
10k sainsburys credit card now hills den securities.
6 k MBNA now caboot
10k alliance an Leicester loan
I have 3 defaults on my credit file.
I was not thinking straight when I left the UK, whilst I know it's no excuse I am after some much needed advice.
I have heard nothing off any of my creditors since I was las in the uk 2011 and at the minute no one is chasing me
Firstly I have a small lump sum of cash (11k) so would I best on a DMP or IVA or just offer the creditors F&F ?
What are the creditors likely to accept ?
Is it possible to get a mortgage with defaults ?

Prior to this I have had mortgages, loans etc all paid off fine and my credit was excellent.

Also I have recently accessed my equifax and experian with the DCA be able to see this and prompt a search for myself as I wish to address this before I get the dreaded harassment .

Any advice much appreciated .

matttye

There are 'bad credit' mortgages but you'll pay a much higher rate. May be better to wait, if you can.

I would offer F&F settlements to your creditors, try and get them down to about 50%.

No a DCA can't see that you've searched your credit file, but they WILL be able to see if you update your address, or open any new accounts.

Good luck!

happy_bunny_2

As Matttye says, you could update your address and likely they will find you. Or, from the details on your report, you can write to the companies updating your address.

Than, if pre April 2007 debt, send a CCA request.

Without signed original, no CCJ possible if defended.

Then, you can offer full and final settlement at probably 50% or less.

If they have the CCA, then you might have to pay more as F&F as they could get a CCJ, especially if they know you have cash.

nicp60

Hi there,
Sorry to hear you've had a rough time. I've put some thoughts below, I hope they're helpful.

Gymrat79 wrote: »

10k sainsburys credit card now hills den securities.
6 k MBNA now caboot
10k alliance an Leicester loan
I have 3 defaults on my credit file. What dates are on these? They'll disappear 6 years from those dates. (The debt won't disappear, but the entries will)

Gymrat79 wrote: »

Firstly I have a small lump sum of cash (11k) so would I best on a DMP or IVA or just offer the creditors F&F ?

As the other posters have said, F&F at about 50%. You could potentially clearr all the debt with that lump sum (with a bit of luck).

Gymrat79 wrote: »

Is it possible to get a mortgage with defaults ?

For those amounts, I'm afraid it's unlikely. You'd need at least a 20% deposit and ideally be borrowing a small amount compared to your salary. I had 2 defaults, 5 years old, one for £7k and one for £500 and needed a 20% deposit for a mortgage that was 1.75x my annual salary. I still had to go to a subprime lender and in the end couldn't raise the deposit.

One thing I would suggest is checking that the defaults are recorded accurately with correct dates and amounts. You may be able to get a mortgage offer before they drop off if they're quite old.

Another thing to consider is how long it's been since you acknowledged these debts. After 6 years they'll become statute barred and therefore unenforceable.