My poor credit rating

Terry_collins

Hello

I was unemployed for 18 months and struggled to pay my debts and defaulted. I am now working and for the last 10 months I have negotiated with HSBC's internal debt company Metropolitan and another credit card company an affordable amount to pay off the debts. I have kept up all the payments. I did a credit check today and HSBC are still marking me down as defaulting on the original loan. My concern is that I will not be able to remortgage my house even if I use a specialist credit card and pay in full every month. Is it worth me writing to the lender? Or is there nothing I can do.:o

matttye

A default will stay on your credit report for 6 years from the default date.

You can ask them to remove it, but they're unlikely to do so unless there's good justification for doing so, i.e. if they made a mistake.

Tixy

There is nothing you can do about the default. It will remain on file for 6 years from the date of default as shown on your credit file.

Its not actually a new default each month its just marking that you have defaulted and the debt isn't fully paid off yet.
Once the debt is fully paid (if its within the 6 year period) then it would be marked as a satisfied default.

Are you looking to remortgage currently? do you mean just move to a new mortgage deal/new mortgage company or borrow more against your property?

Terry_collins

I was actually looking to sell our house in London and move further up north. With the defaults showing it will be very expensive to get a mortgage. Looks like Im stuck:eek:

Tixy

How old is the default? what is the date of the default shown on file?
It is possible to get a new mortgage will a settled default(s) on file. Though generally it will be a lower ltv and a higher APR.

Would your new mortgage be for more or less or similar to the current one? Might there be any possibility of porting the existing mortgage to a new property?

Terry_collins

The default was last year. The mortgage would actually be smaller so porting would not be possible. LTV would be around 80% on new house

Tixy

You might struggle, but it would be worth speaking to your own mortgage company and to an independant mortgage broker with a copy of your credit file.