paying old defaults

bexmar_2

Hi

In January 2009, I defaulted on 3 accounts, 2 of which i then partially settled and 1 which would never settle. The one which wouldn't settle, I have been making small monthly payments to ever since. I have just accessed my experian credit report to check they have all dropped off, which they have. I am still making payments to the defaulted account through a monthly standing order from my bank account. I am looking at applying for a mortgage and the bank will obviously see these payments on my bank statements and wonder what they are. My question is, will this default, that has dropped off my credit report, still affect me getting a mortgage because the bank can see i am still making monthly payments?

Thanks in advance x

happy_bunny_2

Won't harm you from a search on your credit file.

I believe mortgage applications ask about outstanding debt, whether or not on your credit file. Likely fraud if you lie.

Normally, I guess they wouldn't know. But they may ask about that payment.

What was it for, who owns it and how much? Could you settle it?

Thrugelmir

You'll need to declare the debt when submitting the mortgage application. .

bexmar_2

It was a capital one credit card,for around £1500. So, if I pay it off before my mortgage application, the bank won't see it and there's no need for me to tell them about it?

Thanks for your help x

happy_bunny_2

bexmar wrote: »

It was a capital one credit card,for around £1500. So, if I pay it off before my mortgage application, the bank won't see it and there's no need for me to tell them about it?

Thanks for your help x

They may still ask what the entry on your bank statement is, but you can tell them its for an account now paid off. Should they ask.

bexmar_2

Okay, thats great, thanks.

I do have more questions, if thats okay?!

The property that i'm buying is council right to buy property valued at £150,000. I get 40% discount, so my purchase price is £90,000. I am self employed with my last 3 years net profit being £15,000, £15,000 and £25,000. The mortgage will be a sole application as my partner, although living in the property along with our 2 children, is not on the tenancy so does not have the right to buy.
My wages are not huge but they are increasing. Am I right in thinking they will average the last three years earnings? Which will make my income around £18,000.
I have done online affordability calculators for santander, halifax and a few others and they vary greatly. Both santander and halifax take our child benefit and child tax credits into account but as these are 'joint' benefits and its a sole mortgage will this cause a problem?

It's all so confusing and I have so many questions!

Thank you

bexmar_2

Okay, i've just read on Santander that for loans under 90% LTV, they only need the last 24 months SA302's, which would average my earnings to £20,000.
It also says that acceptable proof for child benefit and child tax credits is through last 3 months bank statements (not the award letter). The bank account these have gone into is solely in my name so I don't think it's going to be a problem.
Correct me if I'm wrong though?

happy_bunny_2

I have no idea.

There is a mortgage board you may be better posting on for these kind of questions.

HB

glentoran99

bexmar wrote: »

Okay, thats great, thanks.

I do have more questions, if thats okay?!

The property that i'm buying is council right to buy property valued at £150,000. I get 40% discount, so my purchase price is £90,000. I am self employed with my last 3 years net profit being £15,000, £15,000 and £25,000. The mortgage will be a sole application as my partner, although living in the property along with our 2 children, is not on the tenancy so does not have the right to buy.
My wages are not huge but they are increasing. Am I right in thinking they will average the last three years earnings? Which will make my income around £18,000.
I have done online affordability calculators for santander, halifax and a few others and they vary greatly. Both santander and halifax take our child benefit and child tax credits into account but as these are 'joint' benefits and its a sole mortgage will this cause a problem?

It's all so confusing and I have so many questions!

Thank you

Are you sure thats the case, I would have thought The mortgage ie a loan is a seperate issue from your right to buy