Default removal: default date or account ended

philpot24

Hi guys,

Quick question as I’ve found conflicting information and knew this was the only place I could trust!

I’ve got a defaulted account dated September 2012. I made a payment in August 2016 to settle it.

I’ve checked my Noddle file and it shows defaults date September 2012 correctly and the account end date is August 2016(date I settled it). All makes sense.

Will this account be taken off my Noddle file 6 years as of default date or 6 years as of account end date.

I’m under the impression it’s default date so Sep 2018. Is this correct?

Thanks I’m advance,

Phil

[Deleted User]

Date of default - so September 2018

Though the CRA's might not get updated until the next month

Adam_Laing

Hello,

I have had a similar issue to this. I had a default that started in 2016 with Halifax due to an overdraft. Settled the overdraft a couple weeks ago as when i was in Natwest ( my now current bank) opening a help to buy ISA they told me if i cleared the default balance with Halifax, they can remove the default from my account.

I spoke to Halifax once i cleared the default but they told me its not possible for them to remove the default from my account and i will have to wait the next 4 years for it to come off my account. I was hoping to get a mortgage next year and im really fearing this is going to stop now! is it possible for companies to remove defaults before the 6 years are up?

Thanks
Adam

System

All entries stay in place for 6 years after they're put on your file. The only way companies will remove defaults is if they were incorrectly applied, i.e you hadn't actually defaulted. Paying them off doesn't get them removed from your file.

[Deleted User]

No - as it's a true representation of what happened.

Speak to a broker if you're looking for a mortgage with a default - though 1 paid off default will look better then many or ones not paid off

Adam_Laing

Thanks for getting back to me. So with a default on my account would you say its worth my time as a first time buyer going to a bank for a mortgage? I've never looked into broker mortgages before

[Deleted User]

A decent broker will give you a far better chance than just plunging straight into the nearest high street bank.

Adam_Laing

That's good to know, thank you

PixelPound

Go to a broker, in fact go to a few, and get an initial discussion with them. Most will offer a free session (you can do it over the phone to sound them out) where they can give initial idea of your prospect and will outline costs etc. There are a lot of decent ones out there, but you are best to inquire with a few as they are not all the same (some won't want to deal if yours is a small mortgage and there may be obstacles that mean more work).

Adam_Laing

To be honest the worry for me is going to speak about a mortgage and them telling me because i've got 2 defaults on my account (1 now paid off as mentioned above) they wont offer me anything. But like you say, i will try them and see what or if they can help me when it comes to it