Default & mortage

Hello, I defaulted an account back in 2009 which was promptly moved on to a debt collection agency. Now I have been paying them for the last 7years with no issues.

My question is this, the default for this account dropped off November 2015. Why has the account completely disappeared on my credit file?

Now I have no defaults yet still pay this company X a month (no fees or anything) will the fact I'm paying a debt agency so much a month still affect my mortgage chances? Technically no defaults and or anything to say on credit file I owe anything. Have I slipped into an unknown loophole?

Replies

  • ACGACG Forumite
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    It should not affect your chances of getting a Mortgage but assuming it has more than 12 months to run it will impact on the affordability. If it has less than 12 months to run then it may be ignored by some lenders.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ThePants999ThePants999 Forumite
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    When you say "completely disappeared off your credit file", note that you have three credit files, not one - Callcredit, Equifax and Experian. Check all three before you conclude it's disappeared.
  • It's dropped off because of the 6 year rule, as in 6 years after the default date.

    Be sure to keep up any arrangement you have with the collections agency as they have been known to issue fresh defaults themselves and they, right or wrong, are notoriously difficult to have removed.
  • ThrugelmirThrugelmir Forumite
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    You still need to include the debt owed on any mortgage application you make. If you are considering a mortgage. Best to consider clearing the debt entirely. As wouldn't reflect very well on you otherwise.
  • Hello, I've checked all three and since the default drop off its not there anymore.
    Yet and rightly so the debt is still payable (not disputing that)

    Just worried any potential mortgage lender may find it odd I pay out X a month to basically an unknown... :eek:
  • ACG wrote: »
    It should not affect your chances of getting a Mortgage but assuming it has more than 12 months to run it will impact on the affordability. If it has less than 12 months to run then it may be ignored by some lenders.

    My only other default is due to drop of in August. In your opinion do you think waiting until that one drops off will make a massive difference to interest?

    Basically I don't know whether to wait until after August before applying or just do it now in the hope it won't make to much a difference.

    Any help will be gratefully appreciated.
  • ThrugelmirThrugelmir Forumite
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    MissNikon wrote: »

    Just worried any potential mortgage lender may find it odd I pay out X a month to basically an unknown... :eek:

    Hence why I said pay it off. As the fact that old debt still exists is a representation of you as a potential borrower. Lenders can pick and choose their customers along with the business they underwrite.
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