Questions re DRO consequences 4 years on...

sparkswillfly_2

I obtained a DRO in 2010 with debts of 6k plus after being irresponsible as a student. I was struggling with constant demand letters and unemployed with a baby. Whilst a DRO seemed like a quick fix solution and a blessing I now deeply regret it!

I have obtained copies of my credit file and 3 of the debts are still listed as default. I have tried countless times to get them listed as closed/settled but the companies either ignored me or didn't read my letters properly. I eventually gave up.

I am in a much better position now, I have a 35k salary in a secure job. I have a normal current account (without overdraft) with santander, mobile phone contract and two credits cards with vanquis and capital one that I am using to boost my credit rating by paying them off.

My question is... have I ruined my chances of getting a mortgage forever? In 2016 it will be six years, does this mean the DRO completely vanishes from my file? How about the default debts do they go too? That seems a bit too good to be true.

Also, when applying for a mortgage after 2016 would I have to declare the DRO in the same way you do IVAs and bankruptcy?

fermi

DRO is removed from your credit file completely 6 years from the DRO start date.

Defaulted accounts covered by it are removed from your credit file 6 years from their initial recorded default date, whether they are marked settled/satisfied or not.

A mortgage provider may well ask if you have ever been subject to a DRO, and if they do you would be obliged to say yes. To be untruthful and say no would be application fraud.

If they don't ask though, you obviously are not obliged to volunteer it.

alastairq

Also, when applying for a mortgage after 2016 would I have to declare the DRO in the same way you do IVAs and bankruptcy

It is as Fermi says....and that applies to Bankruptcy as well.

Whist not every mortgage product will be available to an ex-BR, certainly there is a better chance than if a re-possession has occurred in the past!

longtermplanner

In 2016 it will be six years, does this mean the DRO completely vanishes from my file?

yes

How about the default debts do they go too?

They will go 6 years from the default date. the default date should be on or before your DRO date. If it isn't then you need to get this corrected.

Your are doing the right thing by having two credit cards and repaying them in full every month.

The most important thing now is to save a lot of money!