4 year old Default

murphyja

how significant is a 4 year old default deemed to be?

Tixy

Depends on the lender, the product applied for, the amount of the default, whether it is settled or not, whether the person has other accounts with a good credit history etc.

So overall it is hard to say.
For mainstream lenders it is likely to have an impact of a person's ability to borrow and the rate they can borrow at.
For some subprime type lenders it may not have as big an impact.

murphyja

Thank you Tixy,

Sorry to sound stupid but what is a subprime lender?

Tixy

Places willing to lend to (what are perceived to be) higher risk customers, but at expensive rates.

E.g. credit cards there are a number of providers who will offer credit files with low credit limits and APRs of perhaps 40% - 60% (vanquis and aqua are examples)
Or for mortgages there are lenders who will offer a much lower loan to value with higher intital fees and higher APRs (these are usually best found by using an independant mortgage broker).

MikeMouse

Assuming its not "satisfied" then its normally relevant. If it is satisfied then it depends on the lender. Some would refuse on the back of it but to many its not hugely relevant.

On the plus side its going to disappear off your file in 2 years. After that it will be like it never happened plus the original lender won't be able to chase you for it ...... though judging by your post it doesn't seem as if anyone is chasing it anyway so ......

PWG

Most sub prime mortgage lender will ignore a default after three years.