Mortgage advice- historic bad credit

Hello_Kitty_2

Apologies if this is a question that has been asked here many times before however I have just returned from a meeting with a mortgage broker and I'm feeling a little bit confused!

My partner and I went in for an initial chat with a broker about what options would be available to us regarding moving and buying a new home. I have been keeping tabs on my credit score and record because just over 6 years ago, I defaulted on my credit card and loan (too much debt and then got made redundant from my job). I continued to make payments to my creditors, didn't go down an IVA/DMP route and 6 years later, all but one default has now dropped off my report. (A year to go on this one). My credit scores with experian/equifax are now classed as fair (almost into good) and I have been in steady employment now for 6 years. The debts are still not settled but have been consistently paid since I defaulted. Anyway, I think I must have been doing my research wrong because the broker advised that I still wouldn't have much chance of getting a joint mortgage (with my partner who has perfect credit) because even though the defaults were 6 years ago, the fact that they are still unsettled means that I am continuously in default and will remain there until they are settled completely?

Despite this, the broker ran an Agreement in Principal with Halifax, which was accepted for us both however he did state that there was a high chance that I would be declined if/when we progressed with a full application. I feel a bit in limbo now to be honest and am not quite sure where to go from here. Any advice or those with similar experiences would be greatly appreciated.

Westminster

Once an account reaches its 6 year anniversary from default date, it no longer appears on your credit reference agency files so will have no impact on a credit decision from any lender with the exception of one you still owe money to.

Thrugelmir

Why haven't you settled the outstanding debts previously?

Foolishone

You should consult another broker. The defaults "fall" off your credit report after 6 years and will no longer cause you any credit issues.

The companies can however obtain a CCJ for any unsettled debts after this time.

amnblog

Hello_Kitty wrote: »

The broker ran an Agreement in Principal with Halifax, which was accepted for us both however he did state that there was a high chance that I would be declined if/when we progressed with a full application.

Has he explained therefore what the point of the AIP was?

Hello_Kitty_2

amnblog wrote: »

Has he explained therefore what the point of the AIP was?

I had brought a copy of my credit report with me as I wanted to be up front about everything from the start. He did have a quick read through it but when I explained that the defaults had all but fallen off, he said 'oh that doesn't matter, they can still see that you have been late with your payments, I don't think there's any way they'll consider you' He was running an AIP for my partner under his salary alone and when I queried if we could check one with both of us anyway, he did. And seemed very shocked when it came through for a joint application! I know that there are many instances where people then fail to get past the AIP stage and the eventual application is declined, so my thinking is that he was just being very prudent and didn't want me to get my hopes up (which I totally understand) but I suppose I'm just left feeling a bit confused about where to go next.

Hello_Kitty_2

Thrugelmir wrote: »

Why haven't you settled the outstanding debts previously?

The debts at the time I defaulted were very high (I also had car finance that I never missed any payments on as I needed my car for work). I was made redundant and found a new job reasonably quickly but it's only in the last few years that my salary has risen and allowed me to pay off more.

Thrugelmir

Hello_Kitty wrote: »

The debts at the time I defaulted were very high (I also had car finance that I never missed any payments on as I needed my car for work). I was made redundant and found a new job reasonably quickly but it's only in the last few years that my salary has risen and allowed me to pay off more.

Who are the debts with. This in itself may hinder you ability to obtain a mortgage.

Hello_Kitty_2

Thrugelmir wrote: »

Who are the debts with. This in itself may hinder you ability to obtain a mortgage.

Bank of Scotland and Barclaycard.

amnblog

So some of your defaulted. unpaid debts. are with the same lending group to which your broker intends to place your application.


Can anyone see the problem?

Hello_Kitty_2

amnblog wrote: »

So some of your defaulted. unpaid debts. are with the same lending group to which your broker intends to place your application.


Can anyone see the problem?

Yes, I had thought of that but for some reason he straight away wanted to go for Halifax and didn't really look at any other options. So I guess then that as soon as I go to proceed with Halifax they'll look at the historic defaults and tell me to get lost!?