Will statute barred debt prevent mortgage?

Midwife

Not intending applying for a mortgage yet as currently saving for a deposit but it crossed my mind that my husband has some old statute barred debt that he buried his head in the sand about, no longer showing on his credit file (any version) with MBNA and Cahoot (which I think is santander).

Is this going to completely eff up any chance of getting a mortgage.

Before you all berate me yes I know the debt should be paid off, and it is something we intend to address but right now our priority is a stable home for our kids after 5 moves in 5 years although if this will prove impossible then I guess we need to rethink.

Buzby

If Statute Barred, it also comes off your credit file so the only people who will know you owe are the creditors themselves. They can still try to get you to pay up, but cannot take you to court, and as a result it becomes virtually uncollectable.

leveller2911

Midwife wrote: »

Before you all berate me yes I know the debt should be paid off, and it is something we intend to address but right now our priority is a stable home for our kids after 5 moves in 5 years although if this will prove impossible then I guess we need to rethink.

Why not just be honest and say it will never be paid off.

If its statute barred and fallen off the credit files it more than likely won't be a problem in the future.

Personally I don't think debts should ever be statute barred. If people walk away from debt then they shouldn't expect anyone to lend to them in the future. Just my opinion of coarse but as its a public forum I will give it anyway.

Good job I don't make banking policy eh........

Thrugelmir

Cross Santander off your list of lenders to approach. While the debt may be statute barred. Lenders do blacklist.

Are you on the electoral roll at every address?

Midwife

Leveller not the case at all, although I understand why you have your doubts.

The five moves have been, our own home into rented accommodation 1, back into parents house for 10 weeks, then into rented accommodation 2, then back into rented accommodation 1 and now in rented accommodation 3, never on the electoral roll for rented accommodation 2 (only there for 6 months) or obviously whilst back at parents for short time so not too bad I don think.