Mortgage and Defaults

Goldy123

Me and my partner are in the process of getting a mortgage but have been declined by one building society because my partner has defaults on his account.


The defaults are on a loan he had taken out back in 2011 - after complications with his direct debit not coming out it got passed to a debt collector, they gave him the option to de-crease the amount he paid back each month (obviously thinking 'more money in my pocket') this is what he did. Not until now when we have applied for a mortgage and seen his credit rating, it is showing each month from 2011 has been a default!


I phoned the company myself, and said this was never explained to him that it could affect his credit! If it was he wouldn't have opted for lower repayments.


As advised by our Mortgage Advisor we have now paid off the remainder of the balance.


Is it unlikely anyone will lend to us now?
Has anyone else been in this situation? If so, what did you do?
Any advice welcome.


Thank you in advance.

rizla_king

Technically he did default but if you think he was led to believe that the rescheduling of payments would be without a default then complain. Take it to the FOS if they refuse to change it. You may as well do that. You have nothing at all to lose by trying that route.

Thrugelmir

Goldy123 wrote: »

I phoned the company myself, and said this was never explained to him that it could affect his credit! If it was he wouldn't have opted for lower repayments.

The Company are only concerned with recovering the debt owed. It's not their responsibility to give any advice as to how the debtor should manage peoples own financial affairs.