Frustrated

cb82

I recently spoke to a IFA which was recommended by a company building a housing development, he has spoke to the business development manager of both Halifax and Natwest on my behalf and both have said they can't help, the situation is 8 years ago i lost my job and defaulted on payments, these defaults are not on my credit check file any more (over 2 years clean) and i have a pretty ok(ish) credit rating of over 770 on equifax and over 950 on experian.

I'm paying back the money i borrowed to recovery companys but these are through informal arrangments, there is no DMP or IVA setup, i pay them just like a normal utility bill each month through direct debit. The debt companies have both said that because the debt isn't on my record anymore if i was to pay in full it wouldn't be noted on my credit file as satisifed in full.

Halifax and Natwest don't think they can help me even though the IFA has accessed my financials and i can more than afford it, the mortgage payment would be exactly the same i pay for rented housing at the moment, going buy what was said its the fact that my bank statements will show outgoings to debt recovery companies.

My question is, to get a mortgage i obviously have to clear the outgoings to debt recovery companies from my bank statement, short of paying it all off in full which i would find very hard to do both that and provide a deposit, i have the option of moving the payments to my other halfs bank account, i'm applying as a single applicant, i have everything else in order, deposit is ready, its just these 2 outgoings they don't like, would this be the good option to get the mortgage through ? (short of paying off in full).

Thrugelmir

While the defaults no longer show. The debt does, along with the fact that you are paying under an arrangement to pay. So your credit record is far from clean.

cb82

the debt doesn't show on my record, i have finance with other companies that was taken out which isn't defaulted and is being paid as agreed.

i don't see how the arrangment to pay would be on my credit file as there has been no paper work and i've never signed anything.

im sure when i spoke to experian 18 months ago they said after 6 years when defaults etc are removed they are no longer viewable by anyone, not even them.

if i settled all my debts they wouldn't even put a satisifed mark on my record, so whether my debts are paid or not the record remains the same, if they won't give me a mortgage now, i can't see them agreeing to one when my debts are settled and my credit file remains untouched.

kingstreet

How would the lenders know about these payments you make if bank statements aren't requested?


What income multiple do you need (after any credit commitments) and what's the loan to value?

nottoolate

Thrugelmir wrote: »

While the defaults no longer show. The debt does, along with the fact that you are paying under an arrangement to pay.

not true. when the defaults fall off so do all other details of the accounts. doesnt matter if they are still being paid or not. the whole record of them gets wiped off your report.

cb82 wrote: »

the debt doesn't show on my record, i have finance with other companies that was taken out which isn't defaulted and is being paid as agreed.

i don't see how the arrangment to pay would be on my credit file as there has been no paper work and i've never signed anything.

it wont show on your record to anyone if the defaults have expired.

cb82

kingstreet wrote: »

How would the lenders know about these payments you make if bank statements aren't requested?


What income multiple do you need (after any credit commitments) and what's the loan to value?

That's exactly my thought, if its not on my bank statement they wouldn't know.

I'm after a mortgage of £116000 from the bank, I have a 5% deposit and will be using help to buy for a 20% help, the house is £155,000

I ear more than enough to cover it, I can save over £300 per month that's after all my bills and rent, my rent is £550 the mortgage repayment is £553

I'm seeing another IFA this Saturday he's come recommended and will be able to tell me if moving these direct debits to another bank account will help

Just to note, the original IFA the builder gave me has come back and said the BDM at either bank wouldn't be able to help even if the debts wasn't on my bank statement (either by my method or by settling in full), I think it's because they know my story is why they said no, I think going to a new IFA going forward would help more

Gary123456790

Surely you will have to declare these debts when making the mortgage application as it will ask about outstanding debt. So there is no point trying to hide the debt by putting the dd on a separate bank account.

If you dont declare them when asked, it will be fraud.

Gary.

Cornucopia

Pay the debts off. If necessary, increase the Mortgage and the BtH loan to compensate.

kingstreet

If you tick the "yes" box in answer to the question;-

"Have any applicant(s) had a County Court Judgement or default registered against them or if self employed against their business?"

you would be discharging your responsibility to honestly answer the question put to you.

However, if the default is no longer visible on the credit file, the case is likely to pass credit score without any need to lie about the historic adverse.

Only by scrutinising the bank statements will the lender see any continuing payments, if there is no payment marker on the credit file. A lender which does not request bank statements would therefore be unaware of the payments.

You need a full-time experienced whole market mortgage broker here. If your IFA is only a part-time mortgage broker, he may not have the experience to place this case correctly.

cb82

kingstreet wrote: »

If you tick the "yes" box in answer to the question;-

"Have any applicant(s) had a County Court Judgement or default registered against them or if self employed against their business?"

you would be discharging your responsibility to honestly answer the question put to you.

However, if the default is no longer visible on the credit file, the case is likely to pass credit score without any need to lie about the historic adverse.

Only by scrutinising the bank statements will the lender see any continuing payments, if there is no payment marker on the credit file. A lender which does not request bank statements would therefore be unaware of the payments.

You need a full-time experienced whole market mortgage broker here. If your IFA is only a part-time mortgage broker, he may not have the experience to place this case correctly.

I would be honest on the questions but the payments would not show on my bank statement so it would seem to the lender as though the debt is fully settled, surely that's a positive to the lender ? - I've not had any defaults since these appeared 8/9 years ago, I've never had CCJ's or legal action taken against me.

people say "settle the debt" first but its not as simple as that, yes its my fault for getting in the debt in the first place, I'm not trying to get out of paying it.

the IFA is a full time MA and has come recommended, he is also in the local media quite a lot I would think he knows what he's talking about, I will update this post once I have seen him and what is recommended, it may help others.

BeenThroughItAll

cb82 wrote: »

people say "settle the debt" first but its not as simple as that, yes its my fault for getting in the debt in the first place, I'm not trying to get out of paying it.

Surely it IS that simple? If you can afford to save a deposit, can afford to pay a mortgage, can afford to save, why can't you afford to just pay back the money you already owe and have defaulted upon?