Mortgage application - credit report

rosssanderson

My partner and I intend to gor for a mortgage in 2017 when most of our credit history is back to a good level. The only thing that will be left is a debt management status from March 2011 on the account that they are currently using now, the debt was fully repaid back in 2011 and account has been in credit ever since. However i have been told that as long as the account is open, lenders can see the full history even after 6 years has lapsed.
My question is would the debt management status on its own make the mortgage application fail if the account was still open and being used? (even if everything else was ok?)
Or is it better to close it now and open a new one?

tinkerbell28

Was it ever defaulted? If not the account history will remain for the time the account is active, or until 6 years from closure.

How long were they in a debt management plan for the account? If for a few months or so it's doubtful it was defaulted.

Rosco32

From my experience payments history only show the last 6 years, even if the account has been held for say 10 years.

Thrugelmir

Duplicate post

https://forums.moneysavingexpert.com/discussion/4867325

rosssanderson

No it was never defaulted and was just a few months, just debt management and arrangement to pay statuses, the account has been in credit well over 18 months and the overdraft has now gone. Are they best waiting till the last debt management status drops off to see if the score goes up? I just need to know if these statuses would affect a mortgage application if the account was still open but 6 years has passed

Rosco32

Just checked my mobile phone account on Experian which started in 2003. The payment history only shows up to 72 months, which is 6 years.

rosssanderson

i get that bit that we can see 6 years, but i've been told if the account is still open, any prospective lender can see the entire credit history for the account now matter how long it's been open so they would see the debt management status after 6 years had elasped. in this case is it just better to close it and start the clock ticking?

Experian_company_representative

On an open account the payment history stretches back six years maximum.

James

sirwiggum

rosssanderson wrote: »

i get that bit that we can see 6 years, but i've been told if the account is still open, any prospective lender can see the entire credit history for the account now matter how long it's been open so they would see the debt management status after 6 years had elasped. in this case is it just better to close it and start the clock ticking?

They can see the last 6 years activity.

Looking at your file in Jan 2014, anything before Jan 2008 wouldn't be visible, even if you had defaults / ARs in Dec 2007.

rosssanderson

I spoke to a mortgage advisor today, he told me he had an argument with an underwriter becasue they refused someone who credit history was supposedly clean i.e any defaults had dropped off, the underwriter said the defaults have to settled for 6 years before they would pass.
My question now is, i have a default from 12 years ago that i never settled, would have dropped off 5 years ago, i cant even remember what it is, (i was young and foolish) If i never settled it would i be refused because of this even though its not on my report anymore?

Ant.Evs

rosssanderson wrote: »

I spoke to a mortgage advisor today, he told me he had an argument with an underwriter becasue they refused someone who credit history was supposedly clean i.e any defaults had dropped off, the underwriter said the defaults have to settled for 6 years before they would pass.
My question now is, i have a default from 12 years ago that i never settled, would have dropped off 5 years ago, i cant even remember what it is, (i was young and foolish) If i never settled it would i be refused because of this even though its not on my report anymore?

Anything longer than 6 years ago should have no effect of your ability to get credit be it a mortgage or loan etc....

Although i would guess that if you defaulted with Company X 10 years ago then went back to them again for credit they may well say no as they may still hold this default info internally. im not 100% on that and someone else my clarify this for you.