Worried sick - Experian and other assistance required

Frankiesphone

I've posted on here already, albeit on a different thread, (which I now can't find!) but today I have contacted a broker in search of help, and now we are worried sick.

My partner and I have offered to buy a house for £230k - we have a healthy cash deposit of appox 50%. My partner has a default on her credit file from May 2008, which I believe she has been paying since 2010 religously, balance outstanding of approx £1000. She could pay this in full however, we are furious at having to pay this amount, given its mostly interest charges and the fact that the goods we bought, were in fact faulty and not fit for purpose! - however thats another story for another time!

The broker has advised we are unlikely to get a mortgage with this default as the account is still open and therefore not settled, and therefore possibly this will remain showing on the credit file until it has been settled in full?

I have read that it will automatically fall off whether paid, unpaid or still account open - is this correct?

If the above is true, will this default have to be declared on any mortgage application?

We just cannot lose the house that we have fallen for so badly - any advice greatly appreciated. Thank you

ACG

Find another broker.

With a 50% deposit this should be possible to place all day long assuming everything else is ok.

stephenni1971

ACG wrote: »

Find another broker.

With a 50% deposit this should be possible to place all day long assuming everything else is ok.

Agreed.

For the record, information will stay on file for six years from the date the account is SETTLED - not when it defaults.

Frankiesphone

ACG wrote: »

Find another broker.

With a 50% deposit this should be possible to place all day long assuming everything else is ok.

Thank you for your reply. We used the broker advised on this site and was advised this on the phone today.

Do you have any advice with regards to the default dropping off and whether this would have to be declared on any mortgage application?

Frankiesphone

stephenni1971 wrote: »

Agreed.

For the record, information will stay on file for six years from the date the account is SETTLED - not when it defaults.

:eek::eek::eek: - I read the 6 year date was from default date not settled date :eek::eek:

ACG

It would need to be declared but even if you did not declare it, it would get picked up so just declare it.
Having a default is one thing, lying about it is another.

Is the default showing as a payment plan on your credit report? This is different to a default and is looked on in a worse light than a default.

stephenni1971

Frankiesphone wrote: »

:eek::eek::eek: - I read the 6 year date was from default date not settled date :eek::eek:

My bad....

Frankiesphone

ACG wrote: »

It would need to be declared but even if you did not declare it, it would get picked up so just declare it.
Having a default is one thing, lying about it is another.

Is the default showing as a payment plan on your credit report? This is different to a default and is looked on in a worse light than a default.

It is both - if that makes sense? - default registered May 2008, and being paid back monthly so you can see the total being reduced - surely thats better than not paying at all?

We wouldn't lie on any application form, we just wanted advice on what was the best course of action to take. We've not even seen a mortgage application form yet, so at a loss how to complete them, but making sure we are correct in what we say (if that makes sense)?!

Frankiesphone

stephenni1971 wrote: »

My bad....

For clarity, and my blood pressure! - is it default date OR SETTLED date ?

amnblog

It hits your file on the default date and drops off of the file after 6 years whether settled or not.

Which broker is making a mess of this for you.

Senior_Paper_Monitor

Default date (and if you don't believe me try Experian's own site) ...


How long does account information stay on my Experian Credit Report?

Open accounts remain on your Experian Credit Report indefinitely. This is because, while an account is open, it will always be relevant to your credit status.

Once an account has been closed, it will be marked as ‘Settled’. After this the account entry will be automatically removed from your report after 6 years from your settlement date.

Defaults

If an account defaults then then a date of default will be added to the entry. This entry will then remain on your Credit Report for 6 years from the default date. It will then be automatically removed.

Once a default has been paid in full it will be marked as ‘Satisfied’. The entry will still be removed 6 years after the original default date.