Mortgage with Status Q on credit file

Scott1102

Hi All,

I had a default on a pay-day loan (I have a lot more sense now) around five years ago. I was unable to pay the loan off due to having a serious head injury that left me unable to speak for the best part of a year. They never caught up with me as I had to move back in with family during this period. I have since found out about this default as I am now applying for a mortgage.

The mortgage company are fine with it as long as it is over 3 years old and settled (doesn't matter when it was settled, I have checked). When I settled the default 2 weeks ago I explained my situation to the CSR on the phone and she said that if I could prove that I was unable to contact them and that indeed it was due to medical circumstances that there was a good chance that they would remove the default if I settled.

So I sent copies of all my hospital records etc. and they have now passed it on to their customer relations team to investigate.

I was told that they would get back to me in 7 days, I called today (10 days later) to get an update and to ask when they will update my credit file to show as settled. I was advised that there was an 8 week backlog for investigation and in the meantime they have updated my credit file with a status Q.

I need to progress to the application stage of my Mortgage and I am wondering if I would get rejected for a credit account showing for 5 years at default then suddenly going to status Q.

I can ask them to stop investigating and they will update it as settled. Do the mortgage companies have to ignore accounts at status Q?

What should I do?

Thanks for all your help,

Scott.

Thrugelmir

Scott1102 wrote: »

that if I could prove that I was unable to contact them and that indeed it was due to medical circumstances that there was a good chance that they would remove the default if I settled.

You've had 5 years.

When I settled the default 2 weeks ago

Seems you could have done so earlier.

Would seem that the mortgage application was the only reason behind settlement. Otherwise you wouldn't have bothered. This tells your potential lender a lot about you and your attitude to personal finance. You are in the hands of the underwriters and how they view the situation.

Scott1102

Thanks for the reply Thrugelmir.

I am not asking what are my chances of getting the default removed, The lender has already stated that they would accept the default as long as it has been settled (regardless of settle date).

I accept that I could have managed it a bit better and I suppose that the customer relations department at the pay-day loan company might come to the same conclusion that you have.

I need to ascertain if I need to stop this investigation so that the account shows as settled or if the lender cannot take status Q records into account.