Repossession still on credit file.

BSW123

Hi,
I have recently paid a Reservation fee on a new build that is not due to be completed by March 2019.

I owed a house previously with my ex husband previously but had the house repossessed as they would not just transfer the property into just my name. (Low income at the time) Ex husband was not reasonable and would enter the property whenever he wanted.

We first defaulted on the Mortgage over 6 years ago so i thought it wouldn't be showing on my credit file. I was wrong. It is still showing and is not due to come off till Jan 2019.

Is it right that a mortgage default is from the date the repossession had taken place? or is the default when you reached 3 months + of none payments? The Mortgage company said it was the first so they would not remove any sooner..

I'm struggling to get a mortgage with this and wondered if there is anything i can do?

Anyone offer any advise please?

Neutrinno

The mortgage default should be when the default occurred, not the actual date of the repossession. If this is incorrect you will need to write to the data controller of the bank in question telling them to amend their records immediately so your credit file will reflect this. I think the default date would be later than just 3 missed payments though, usually closer to 6+. You will still need to declare the repo on your application.

ACG

You do not default at 3 months on anything. It would usually go to around 6 months and then default.

In any event, lenders typically ask if you have ever had a repossession, so you would need to declare it anyway.

Have you spoken to a broker?
Did the full Mortgage get cleared with the sale of property or was/is there a balance outstanding? The answer to that will probably determine your options.
What LTV are you looking at?

It might be worth having a read of this:
https://www.experian.co.uk/consumer/guides/defaults.html

It turns out defaults can be issued after 3 months (every day is a school day) but I do a lot of adverse mortgages and have never seen a default issued after 3 months.

Carrot007

Even if you were to argue it with them and they agreed there is no way it would be off sooner than Jan now.


So either wait until then to apply for a mortgage or go see a proper whole market broker. Should be able to get something with it being that old.

Neutrinno

Carrot007 wrote: »

Even if you were to argue it with them and they agreed there is no way it would be off sooner than Jan now.


So either wait until then to apply for a mortgage or go see a proper whole market broker. Should be able to get something with it being that old.

It can be amended within a day, actually.

kingstreet

The CCA doesn't apply to secured credit over £25k so you can forget about defaults and the six year rule.

If you fail to honour a secured credit commitment, the lender has the right to pursue for any repossession shortfall for twelve years. If they fail to do so within six years, then the debt become statute-barred.

BSW123

Thanks for your replys. I’ve already contacted the bank and they have said that a mortgage only defaults when the house is repossessed. I understand that i will have to declare it still but feel a lot happier with it not actually showing on there.

I’m looking at a help to buy mortgage with a 5% deposit. With 75%LTV

I’ve tried two brokers and they have said I would need to wait till that’s off my credit file.

I’ve put a reservation fee on a property just a week ago but wished I’d looked into this a bit more before I took the plunge.

BSW123

The was a small shortfall that I have paid in full and it shows that on my credit file.

ACG

Speak to a broker who specialises in adverse. If the repossession has been fully cleared there is at least one lender who will consider it.

Neutrinno

kingstreet wrote: »

The CCA doesn't apply to secured credit over £25k so you can forget about defaults and the six year rule.

If you fail to honour a secured credit commitment, the lender has the right to pursue for any repossession shortfall for twelve years. If they fail to do so within six years, then the debt become statute-barred.

The secured debt can still be chased after the six year mark, but the default will still fall off CRA's after six years.

kingstreet

Neutrinno wrote: »

The secured debt can still be chased after the six year mark, but the default will still fall off CRA's after six years.

How/when is a default registered on a non-CCA regulated agreement? Is it only after repossession has taken place and there is a non-secured shortfall? Does that fall under the CCA jurisdiction?

I've never seen anything but arrears on a mortgage record on a credit file.