Current default and mortgage broker questions

SiioCal

Went to see a broker last week and now have a few questions

Broker only asked about credit cards loans and HP commitments . I have a store card and online accounts like next and littlewoods . Should I have told him about them ?

Since going we checked experian and turns out my husband has a defaulted account from two years ago he thought was closed (mobile phone contract) . If he sets up a payment plan can we get them to change the debt to "satisfactory" instead of "defaulted"

Also , the broker went through a few different companies and got us t pick one . What if that one declines us will he just try another one ? I thought going to a broker was like a comparethemarket.com type situation where we apply to loads of people and see who offers us the best deal .

Thrugelmir

Ideally you settle any defaults immediately. Any payment plan or arrangement to pay will cause further damage to a credit profile.

SiioCal

I don't understand how that can be . If you can't afford to pay it back in full surely its better to pay It up than to ignore it ?

ACG

YEs you should have told your broker about any credit commitments - HP, credit etc are just examples but we need to know about all credit you have.

A payment plan looks like you have borrowed more than you can afford and got into payment difficulties.

A brokers job is to find the best deal for you, not you pick one. If you apply to them all you would end up having god knows how many credit checks. The idea of a broker is that they get all the details down check it by the lenders criteria working their way down from the best deal until they find the best one for you... your broker should be explaining this to you and telling you which THEY think is the best - thats their job.

opinions4u

SiioCal wrote: »

Broker only asked about credit cards loans and HP commitments . I have a store card and online accounts like next and littlewoods . Should I have told him about them ?

Seriously? He's asked about loans. The things you withheld are all forms of loan. Yes, you should have disclosed your full financial position. Much better than tying your broker's arm behind his back.

Since going we checked experian and turns out my husband has a defaulted account from two years ago he thought was closed (mobile phone contract) . If he sets up a payment plan can we get them to change the debt to "satisfactory" instead of "defaulted"

He defaulted. That fact won't change. Payment plan will extend the time this impacts on your credit file (the six years starts again) so I'd get it paid in full.

Also , the broker went through a few different companies and got us t pick one . What if that one declines us will he just try another one ? I thought going to a broker was like a comparethemarket.com type situation where we apply to loads of people and see who offers us the best deal .

No, the broker seeks out the best lender for your circumstances.

chanz4

SiioCal wrote: »

Went to see a broker last week and now have a few questions

Broker only asked about credit cards loans and HP commitments . I have a store card and online accounts like next and littlewoods . Should I have told him about them ?

Since going we checked experian and turns out my husband has a defaulted account from two years ago he thought was closed (mobile phone contract) . If he sets up a payment plan can we get them to change the debt to "satisfactory" instead of "defaulted"

Also , the broker went through a few different companies and got us t pick one . What if that one declines us will he just try another one ? I thought going to a broker was like a comparethemarket.com type situation where we apply to loads of people and see who offers us the best deal .

The default within the last 3 years is going to be your biggest issue, also if you cant afford to pay it how you going to afford all the other costs?

kingstreet

You need to obtain the other two versions of your credit file, from Equifax and Call Credit. This will provide your broker with a full picture of your circumstances.

How did you leave it with him? Does he know about the default?

If not, stop him doing any searches for an agreement in principle as the default will cause him to reconsider the lender options.

Acceptance of an application with a default will depend on the lender, the loan to value and other application data. As the default may not be visible on all versions of a credit file, the broker needs to know this so he can approach the most appropriate lender.

SiioCal

He wasn't to go ahead with any searches . We are getting gifted the deposit from my parents but we didn't have an exact amount so we needed that before we could go any further . We were really only there to find out what we can afford and how much my parents need to give us .

I have an old overdraft from uni I'm still paying back I told him about that and he said he didn't need that . That's why I didn't mention my online accounts . And I had actually forgot all about the store card .