mortgage application old defaults

Ambrose12_2

Hi all,
Newbie here !

I'm 42 self employed and wondereing what the chances are of getting accepted for a mortgage.
I earn 50000 net and my wife is employed on 25000 and we have 45000 in savings. We both have good to excellent credit scores, not that that means anything !
However in 2004 I got messed up with HSBC leading to 4 defaults adding upto about 30000. All the defaults are completely wiped off credit record as was so long ago but on mortgage applications it asks if I have ever had a default. Do I declare defaults that are that old as this would then trash my credit score ?

Many thanks

holly_hobby

Defaults expire from your credit record following their 6th anniversary of registration.

Are you in a repayment schedule for the defaulted agreeements you had - if so this will have to be declared within your commitments and taken account of within your affordability assessment.

Or following default did you neither make any futher payments nor acknowledge the debts ? (ie they both expired and effectively became statue barred in 2010) ?

Holly

Ambrose12_2

yes they have all been settled for over six years now. Would be a shame to ruin my credit now because of such a long time ago.

holly_hobby

I assume you mean by settled that they became statue barred ?

Or did you repay the 30k owed ?

If the mge app asks for details of any accounts you have ever defualted on (regardless of when), then of course you must declare them, as to do otherwise would equate to mge fraud. To which the lender will look at the amount, why and when the defaults occured, and a evidenced change to financial circs from them to now (if the accounts defulated were not as a result of a dispute).

Presume settled means they expired/became SBd in 2010, if so your CRA files will be clear (do check however - check all 3 agencies experian, equifax, callcredit), if so you won't have a prob placing this via a broker.

Hope this helps

Holly

Ambrose12_2

Yes sorry statute barred