Debt gone from Credit file can it be seen in morgage application?

DMP1

Hi

I Have a credit card bill that was wrapped into a debt management plan in 2006

it was £6,000 then and now it is £3,774. I have paid it off every month under the agreed terms and never missed a payment.

It has now gone from all my credit files as it is over 7 years old.

I have no other debts and will be applying for a mortgage next year.

When mortgage companies check my credit file and rating is there any way they can see that debt? If they do I assume I wont be able to get a mortgage

I am hoping that with it removed from my file that with no other debts I will be successful in my application.

I do not currently have the money to just pay it off.

Could someone please tell me if it can be seen or has it disappeared to creditors? I will still be paying it off until it has cleared, I understand that.

Thanks

CKhalvashi

Unless the creditor is the same, it won't show (applying for a Lloyds mortgage when it was with Halifax, for example is a definite no)

CK

fermi

No. Any lender checking your credit file will see no sign that the debt ever existed.

Obviously if you are asked on an application whether you have outstanding debts then you are duty bound to declare it.

DMP1

If I do not declare it how can they check that it exists?

tinkerbell28

DMP1 wrote: »

If I do not declare it how can they check that it exists?

Through bank statements. If they see a regular amount going out.

Not only that lots of banks own each other, merge, etc.

You will be asked of any outstanding financial commitments and debts.

If you don't declare it, it is fraud.

So you risk an instant decline and a cifas marker on refusal of application. Or later down the line if banks merge or one of them gets wind. A cifas marker and repossession of your house when they withdraw the mortgage.

Not to mention, if they creditor gets really angry that you have the money to splash on a mortgage and deposit, without paying them back first, they could go for a CCJ as you could actually be paying them more. That would then lead to scenario two if you've completed.

DMP1

Well see this is how It is set up

I pay the creditor £1 a month

This is paid from an almost inactive bank account

When applying for a Morgage I would be presenting my regular bank account where all my bills and incomings and outgoings are paid

The creditors are actually a debt collection agency and not a bank. They wouldn't pursue any ccjs as they have been offered 60% of the balance as a settlement figure on 2 occasions in the past 6 months but have refused so in court that would stand against them so a ccj gives them no leverage

They have no way of accessing that I have a Morgage or a house, they have no authority to find that information out and my address registered with them wouldn't be changing

I'd like to point out that I do want to pay them but I don't have the full balance and they won't accept 60% so I am not letting them get in the way of my house dreams any longer

Hence why I am asking about not declaring it as there's no paper trail

pmartin86

I'll let a more experienced person than I confirm, but I'm fairly sure that not declaring a debt and hoping its not found out is fraud. Your new address will appear as a link on your credit file and you will be associated that way.

tinkerbell28

DMP1 wrote: »

Well see this is how It is set up

I pay the creditor £1 a month

This is paid from an almost inactive bank account

When applying for a Morgage I would be presenting my regular bank account where all my bills and incomings and outgoings are paid

The creditors are actually a debt collection agency and not a bank. They wouldn't pursue any ccjs as they have been offered 60% of the balance as a settlement figure on 2 occasions in the past 6 months but have refused so in court that would stand against them so a ccj gives them no leverage

They have no way of accessing that I have a Morgage or a house, they have no authority to find that information out and my address registered with them wouldn't be changing

I'd like to point out that I do want to pay them but I don't have the full balance and they won't accept 60% so I am not letting them get in the way of my house dreams any longer

Hence why I am asking about not declaring it as there's no paper trail

You don't know that especially as you are paying them a token amount. They well may suspect you can pay the whole lot and are refraining, so biding their time.

They will be able to see the mortgage appear, if they recheck your credit files. Debt collection agencies have alerts set up. Doesn't matter if you keep your address the same with them. You'll be linked to your new house on your credit files, via your mortgage and utilities, amongst other things including your bank.

When applying for a mortgage you can't pick and choose what bank accounts you show.

So if it is active, which it is, if you're paying £1 a month out of. It will be viewable and declarable.

So what you're asking is, "Can I commit financial fraud on a mortgage application by trying to hide accounts, and do you think I'd get away with it"?

rizla_king

pmartin86 wrote: »

I'll let a more experienced person than I confirm, but I'm fairly sure that not declaring a debt and hoping its not found out is fraud. Your new address will appear as a link on your credit file and you will be associated that way.

Yes, that is application fraud.