Can you be declined a mortgage for a OLD debt

520d2012

Hi - asking for my sister who wants to apply for a mortgage. Sorry if it appears a long read.
she defaulted on a credit card debt back in 2007 or 2008, which was cleared in 2018 ish through a debt collection agency.
she had to contact barclaycard to remove the “arrangement to pay” in 2018 as she wasn’t aware the credit file was marked with AP. Barclaycard agreed and applied a default to the original date In 2007 - which means it no longer appears on any CRA.
She applied for a mortgage last year with a high street lender and was approved within the week as she now has a excellent credit score and is able to service her debt, and had a good deposit.
unfortunately though the property she wanted was taken off by the vendor before contracts were exchanged, and she has now found a new property, but with her income she is unlikely to get a mortgage with the same bank as last year, however according to Barclays calculator she could get the mortgage.
she is worried about applying just in case she gets rejected.
does anyone know whether Barclays check old barclaycard debt when applying for a mortgage?

My broker thinks she will be ok, but will charge her for the application, which she won’t do as she thinks it’ll be a waste of money only to be rejected.
Anyone who has experience in this situation?

Note - defaults or AP do not show on any credit file, but do Barclays/barclaycard keep a blacklist

[Deleted User]

Each bank will keep an internal record of bad debt forever. Whether that has an impact or not is another question. 

I had a guy who had a £20k loan with halifax paying at £1 a month for last decade.  Still got an approved mortgage with Halifax that even went to individual underwriter review and was offered.  

It's worth a go, as long as the applicant  is honest on all questions the lender can either accept or decline it. 

Get your broker to do a case with a fee on offer as a favour to you. And if he's not willing to at least try help your sister out then take your own business elsewhere. 

520d2012

Thanks @Deleted_User
I guess she can only try otherwise she’ll just stress about every time she has to apply for a mortgage or a remortgage.
My broker has offered her the option of paying £95 upfront and the rest on completion not even on offer.
She’s just worried that she’ll be left with a decline on her CRA when it’s so clean now and to make it worse she paid for it!
I’m happy to pay the £95 for her but I need her to go see the broker.
Broker has told her to try - not sure what else can be done other than wait till some more mortgages are back on the market