Technical Question Default Drop - Off

the_freedom_trail101

Hello all,
I am new to the forum and would be grateful for any help any of you could give me with a technical question regarding a default dropping off a credit record.

Hypothetically, If a default is registered on 30th September 2014, the marker shows as a default for that month.  My question is, six years later, does the default drop-off at the end of August 2020, therefore equalling 72 months of default markers (exactly 6 years), or does it drop-off on the 29th September 2020, therefore remaining on there for exactly six years in calendar terms, but showing as 73 default markers (more than 6 years)?

i would be very grateful for any insight you may be able to give me on this as not know is annoying me, and I can’t seem to find an answer anywhere

Thank you,

The Freedom Trail

sourcrates

Its 6 years, thats really all you need to know, different CRA`s update at different times, usully monthly, so the month following its removal, it will update to show this.

maxximus75

As a rule of thumb, I would usually go by 6 years + 1 month due to the above mentioned update cycles which can differ between the CRA's.

the_freedom_trail101

Thank you both for your answers.  That’s very much appreciated.  In terms of getting a mortgage, even if the default were still visible (technically) after six years, would it be still considered in a mortgage application, or would it be considered ‘inadmissible?’  I’ve always wanted to use that word lol... 

Sandtree

the_freedom_trail101 said:

Thank you both for your answers.  That’s very much appreciated.  In terms of getting a mortgage, even if the default were still visible (technically) after six years, would it be still considered in a mortgage application, or would it be considered ‘inadmissible?’  I’ve always wanted to use that word lol... 

You can always be "considered" for a mortgage even if you have three defaults and they all happened in the last month... your chances of getting a mortgage or favourable rate is another question.

The underwriter will look at the bigger picture... clearly the smaller the loan and the smaller the LTV the less risky it is for them in general and so the more gracious they may be with adverse history, especially history that's a fairly long way back. Ultimately they have the security of a charge against your home.

the_freedom_trail101

Sandtree said:

the_freedom_trail101 said:

Thank you both for your answers.  That’s very much appreciated.  In terms of getting a mortgage, even if the default were still visible (technically) after six years, would it be still considered in a mortgage application, or would it be considered ‘inadmissible?’  I’ve always wanted to use that word lol... 

You can always be "considered" for a mortgage even if you have three defaults and they all happened in the last month... your chances of getting a mortgage or favourable rate is another question.

The underwriter will look at the bigger picture... clearly the smaller the loan and the smaller the LTV the less risky it is for them in general and so the more gracious they may be with adverse history, especially history that's a fairly long way back. Ultimately they have the security of a charge against your home.

Thank you Sandtree, I have otherwise very good credit so think I’ll wait it out for the sake of 3 months.  The default is elderly, for a tiny amount and satisfied, but in the grand old scheme of things, 3 months is a very small time to wait for the potential benefits.  I really appreciate you replying to my question 🙂👍

cymruchris

I would wait to apply for any big financial product until all of the free reports showed the default removals. They go sooner than that on the 'live reports' that lenders see - but to be absolutely sure they are now 'invisible' - wait until you yourself can't see them. And of course - don't apply for a product from a financial institution that would have a record of your default. So - if the default was with a Natwest credit card - don't go to Natwest for a mortgage - as although your file won't show the default - the internal bank records may still have the info on file, and would use it as part of their decision making process.