Will these defaults effect my mortgage application?

perjubs

Hi, I defaulted on two Halifax accounts in August 2009 and settled the balance in full in September 2013.

I am no applying for a mortgage and have to answer whether or not I have had any defaults in the last three years. Of course, I haven't defaulted in the last three years but the default was there.

It's worth mentioning I think too, that I have had an almost impeccable credit history since getting the debt management company to sort my debts out for me, and since clearing all my debts by 2013 I have increasingly improved my score to the point that it is now average and I can get decent credit cards and loans should I need to.

How should I proceed?


Thanks

ol' Perjubs

jonesMUFCforever

Tell them the truth about the DMP if you were paying it off within the last 3 years.

solentsusie

Firstly, have you obtained all of your credit reports and seen what is on there in the way of defaults etc.? This is what any lender will be looking at as part of your credit assessment.

Once you have these you can assess what you do and don't need to declare on your mortgage application. Going through a mortgage broker will also help, if you have any adverse credit on your files as they will be able to align your application towards lenders who are more likely to accept you with defaults still on your credit record.

Get your files from Experian, Equifax and CallCredit - Noddle the CallCredit file is availabble free online.

Good luck.

Thrugelmir

A DMP is going to have an impact. Defaulting is one matter. Settling is another.