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Mortgage application with statute barred debt
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useyourillusion2
Posts: 15 Forumite
Hi
I'm planning to apply for a mortgage with my wife in the next couple of months but she has had problems with debt in the past (defaulted in 2006).
Her credit rating these days is excellent but we're both concerned that her previous mistakes could come back to haunt us.
If we apply for a mortgage I assume we'll be asked if we've ever had problems with debt in the past to which I'd be fine but she'd have to say yes, otherwise I assume she'd be committing fraud which will bring its own set of problems!
My questions are these:
- aside from the application itself and credit files, can lenders access any other information, assuming we apply for a product offered by a lender my wife has never had dealings with?
- do lenders tend to ask about EVER having had debt issues, or is it more across a specific time frame? For example if they asked if she had debt problems in the last few years she can say no because her credit score is excellent now
I'm aware that the outstanding debts are statute barred and so not enforceable, but that doesn't mean they don't exist. Since we've been preparing for a mortgage application my wife has been on the electoral roll so naturally, one debt collector has traced her but we have not responded (statute barred)
Can anybody advise please?
I'm planning to apply for a mortgage with my wife in the next couple of months but she has had problems with debt in the past (defaulted in 2006).
Her credit rating these days is excellent but we're both concerned that her previous mistakes could come back to haunt us.
If we apply for a mortgage I assume we'll be asked if we've ever had problems with debt in the past to which I'd be fine but she'd have to say yes, otherwise I assume she'd be committing fraud which will bring its own set of problems!
My questions are these:
- aside from the application itself and credit files, can lenders access any other information, assuming we apply for a product offered by a lender my wife has never had dealings with?
- do lenders tend to ask about EVER having had debt issues, or is it more across a specific time frame? For example if they asked if she had debt problems in the last few years she can say no because her credit score is excellent now
I'm aware that the outstanding debts are statute barred and so not enforceable, but that doesn't mean they don't exist. Since we've been preparing for a mortgage application my wife has been on the electoral roll so naturally, one debt collector has traced her but we have not responded (statute barred)
Can anybody advise please?
0
Comments
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Get copies of her/your credit files from all three CRA's the lenders can only see what you see, if there is no evidence there then you should be fine.
Obviously a lender may keep records for longer than six years so be aware of financial links that various institutions have.
Be open with a good broker, there are a few on here and they will guide you to a lender accordingly.0
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