Store card default

alexjuke

Hi all,

I'm new to this site, and after reading some other forum threads thought you might be able to shed some light on my situation.

I'm currently looking at buying a house with my partner, we both make a good wage and together can both afford our dream home you could say. However, this is where the problem lies.

My partner is unable to go on the mortgage application due to defaults on her credit file. These are from her mother, taking out 3 store cards in her name when she was 18 and never paying them off, each card for around £300. These defaults have been sat unpaid for nearly 3 years now, and we only found out about them recently. We have settled 2, and are planning on settling the last one this month. Regardless of this she will be unable to go on the application due to underwriting criteria.
Her mother has admitted that she took the cards out in her name, however my partner claims she has never seen a letter turn up regarding the said cards, obviously due to her mother hiding them.

My question is can she try and bargain with the creditors, asking to the defaults to be removed as she's paid the debt off and explain the situation, or will they think she's simply crying wolf like they've probably heard a thousand times before?

All feedback is greatly appreciated.

Alex.

Tixy

Unlikely she will be able to negotiate with them just by explaining the situation, although she could try.

There may be a chance of getting them removed if mother was reported for fraud and daughter had a crime number. But obviously that has implications for the mother.

alexjuke

Ah i thought that'd be the case, I've been speaking to my mortgage adviser who said we might be able to get round it once their settled, but i was just seeking any further advice really.

I've read about requesting the a copy of the letter of default, and hoping they don't have it on record, but i'm guessing that's out the window seeing as we've paid 2 off.

Tixy

They are not obliged to provide a copy of the default letter (despite what some old templates etc suggest online). All they have to keep is a dated entry to say that a default was sent.
So I doubt you would get far with that.

Hopefully a mortgage broker will be able to help find a mortgage lender even with the defaults are on file. Especially if you have a fairly decent sized deposit. And whilst you may not be offered the most competitive APRs around you could always try remortgaging to a better deal in 3years time once her file is clear.

McKneff

Tixy wrote: »

They are not obliged to provide a copy of the default letter (despite what some old templates etc suggest online). All they have to keep is a dated entry to say that a default was sent.
So I doubt you would get far with that.

Hopefully a mortgage broker will be able to help find a mortgage lender even with the defaults are on file. Especially if you have a fairly decent sized deposit. And whilst you may not be offered the most competitive APRs around you could always try remortgaging to a better deal in 3years time once her file is clear.

Good post Tixy.


Sigh.... you are so sensible and helpful xx

sirwiggum

Can you partner get the mortgage in their name?
Then, when the defaults drop off, get added to it?

alexjuke

sirwiggum wrote: »

Can you partner get the mortgage in their name?
Then, when the defaults drop off, get added to it?

I can get it in my name yes, but it means our house choices are limited as I can borrow around £100k, where as with her wage included we can borrow nearly £200k