First time buyer with an odd question.

funkysi

I agree! Thanks all!

funkysi

Both Cabot and Wescot are now paid in full. I have no debters other than the small balances on my credit cards! Despite being horrible seeing all the money vanish from my account, I now know that I am in a good position for a mortgage! At the end of the day, that's the main thing.

Movingon5464

Apologies for resurrecting an old thread but I am in a similar situation and the replies here confused me a bit.

I am also paying off debts that defaulted and have now fell off my credit file. I am hoping to apply for a mortgage next year but am worried that these debts will still cause a problem for me despite no longer being on my credit file. I was under the impression that I would have to declare these debts as not to do so would be considered fraud. From the replies above it seems like the problem was the standing orders to pay the debts showing on bank statements. I could pay my debts at the post office rather than through my bank if I wanted. Does this mean I would not have to mention them as a mortgage provider would not see them on my credit file or bank statement ? Is this not fraud ? I don't want to commit a crime but also don't want to declare these debts unless I have to. Can anyone clarify this please ?

Movingon5464

Anyone know about this ? I will be a first time buyer so don't know what to expect with regards to providing debt information on a mortgage application. From reading this forum it seems to be agreed that it is better to wait until defaults fall off your file before applying for a mortgage if you can. But what about if you are still paying the debts ? If you are required to state your debts in the application why does it make a difference if the defaulted accounts have fell off your file or not ? Any advice appreciated as I don't want to shoot myself in the foot and tell them about debts that are no longer showing on my credit files unless it is a requirement.

Thrugelmir

Movingon5464 wrote: »

Apologies for resurrecting an old thread but I am in a similar situation and the replies here confused me a bit.

I am also paying off debts that defaulted and have now fell off my credit file. I am hoping to apply for a mortgage next year but am worried that these debts will still cause a problem for me despite no longer being on my credit file. I was under the impression that I would have to declare these debts as not to do so would be considered fraud. From the replies above it seems like the problem was the standing orders to pay the debts showing on bank statements. I could pay my debts at the post office rather than through my bank if I wanted. Does this mean I would not have to mention them as a mortgage provider would not see them on my credit file or bank statement ? Is this not fraud ? I don't want to commit a crime but also don't want to declare these debts unless I have to. Can anyone clarify this please ?

If fail to declare anything on the mortgage application then it is considered fraud. No if's or but's.

If detected this will not only impact this application but your ability to obtain a mortgage in the future.

As the OP did. Speak to your creditor(s) and see what they'll accept in full and final settlement of the debt. A far easier way of addressing the situation. Even if it means postponing your purchase for a few months.

Thrugelmir

Movingon5464 wrote: »

Anyone know about this ? I will be a first time buyer so don't know what to expect with regards to providing debt information on a mortgage application. From reading this forum it seems to be agreed that it is better to wait until defaults fall off your file before applying for a mortgage if you can. But what about if you are still paying the debts ? If you are required to state your debts in the application why does it make a difference if the defaulted accounts have fell off your file or not ? Any advice appreciated as I don't want to shoot myself in the foot and tell them about debts that are no longer showing on my credit files unless it is a requirement.

Obtain your credit reports and speak to a broker. There's lenders that will consider adverse credit applications. Much depends on the number of defaults, the age of, whether unsettled, partially settled or fully settled, and finally the amount of the defaults.

Movingon5464

Thank you. I think I will try to clear the debts by making them an offer.