Strange Decline?

Confusedaboutmortgages

Hi - I'm currently remortgaging, received a positive DIP with HSBC and was then declined based on "negative file notes regarding old debt". I had 2 defaults with them many years ago which were settled and dropped off my credit file several years ago. Can they still decline based on this old information? Credit file has zero negative factors (0 missed payments etc.) I didn't think they could penalise you after the 6 year period? Any help is much appreciated.

ACG

6 years it drops off your public record but lenders can keep their own internal records.

Pixie5740

6 years of data is all the credit reference agencies hold. Banks and building societies can keep their own records going back to day dot. These defaults will only affect you within the HSBC banking group, another lender won't know about them.

Thrugelmir

Confusedaboutmortgages wrote: »

I didn't think they could penalise you after the 6 year period?

Says who? Lenders are in business to make money. You've previously defaulted on them. They can hold this against you for as they wish. Modern technology makes data retention very easy. Lenders have no problem finding customers for their products. So disbarring those with previous historic issues is standard practice. .

David_White

You borrow money from me 10 years ago and don't pay it back as and when agreed.

My friends might consider lending you money again in the future but I certainly won't.

WillyWonga

HSBC are a picky lender. More the reason to use a decent broker. Always disclose to a broker which if any banks you have had any issues with even if was 10 years ago so as to avoid.

Moto2

I ended up defaulting on a loan from the Co-op bank in 1992, they still won't give me another loan (as of 2014)