Default help!!

LouisaGrace1983

Hi everyone. Hoping you can help.

I looking to apply for a mortgage in the next 6 months and I have discussed this recently with a broker. I have checked my credit file and it is showing as very poor! I did have a IVA but this has finished and due to come off my credit file any day now . I have just paid off my credit card as I was very close to the limit so this was having a negative impact to my rating so this should also update shortly. It is showing that I have 2 defaults- one that was registered in March 2011 so should drop off in a month. The other one is for a credit card I had with Capital. It was passed to Lowells and they are advising me that I did set up a repayment plan over a year ago but then this was cancelled (waiting a reply to why t the moment). I have been in contact with them to try and get this removed as I am worried that it's going to stop me getting a mortgage. Just wondering if anyone has any ideas on how to get them to remove this. Lowells have advised that Captial put the default against me not then but on my credit file it is under there name. The reasons I was struggling to pay back the money was due to reducing my hours in work as I had my daughter. I was in a iva at the time so surely they shouldn't have given me the credit card?? The default amount is £373 but they have said they will not remove this. The default will be on my account until 2019. I have seen that even if I settle the account it will still show as a default and would make no difference to mortgage companies. I'm in such a better position with my finances and I feel that because of a blip in my life it has affected my future plans to get my future family home and not rent anymore!! Any help and advice would be greatly appreciated!! Thanks

[Deleted User]

I can't quite decipher what the two issues are, but are either of the defaults incorrect? ie did you default on the agreements, or are they errors?

If they're correct, then look to settle them, as this will look better than unsettled defaults, though obviously still not great.

You won't get far with the 'you shouldn't have given me the credit I asked you to give me' argument though.

When applying for a mortgage, use a decent broker so it gets placed correctly.

Gaz83

If it's an accurate reflection of your credit history, it's very unlikely it will be removed.

You could ask for it to be removed as a gesture of goodwill, but this is very unlikely, especially when there is an outstanding balance.

You mention there was a payment plan but this has been cancelled, and you're not sure why - didn't you notice your payment wasn't being taken?

You also need to take some responsibility - you can argue that they shouldn't have given you the card, but it was presumably you who applied for it.

MrsTinks

It's not impossible to get a mortgage with a default, it's probably easier with a settled one though.

You might be able to get the creditors to agree to remove the defaults in return for settling the debts, but really they shouldn't as this is supposed to be a record of your credit history. As for "they shouldn't have lent me money" - I think under your IVA you shouldn't have applied for it?

It takes time to build up a credit history that shows you have been responsible with credit, I think possibly you need to step back, spend a year or two saving heavily for your deposit and by then all the defaults should be off or old enough they will barely matter and you can get a far better mortgage rate because you will have a good deposit

Good luck