Debt advice please

JTaylor82

@sourcrates is this true
cheers

sourcrates

You say in your second post that "all your debts defaulted 5 years ago".

In which case it doesn't matter if you have been paying them, or ignoring them, 6 years from the date of default each entry will drop off your credit file regardless of what you do.

I think a previous poster confused the date of default, with the limitation period, they are both separate issues, and the limitation act would not yet apply to these accounts.

Your defaults will drop off your file on the 6th anniversary, yes.

JTaylor82

Thank you pal
I was pretty sure but  doubted myself then.

kimwp

JTaylor82 said:

Yea but the mortgage lender wont know will they as it will be off my credit file

(I think) - the defaults won't be on your credit file, but the lender will still be able to see your debt - so this will reduce the amount you can borrow. Presumably paying off the debts at such a slow rate will not look good as well. It might be worth posting on the mortage board to see what an IFA's opinion is regarding getting a mortgage.

sourcrates

kimwp said:

JTaylor82 said:

Yea but the mortgage lender wont know will they as it will be off my credit file

(I think) - the defaults won't be on your credit file, but the lender will still be able to see your debt - so this will reduce the amount you can borrow. Presumably paying off the debts at such a slow rate will not look good as well. It might be worth posting on the mortage board to see what an IFA's opinion is regarding getting a mortgage.

The whole entry, debt/account/default everything, will drop off his file at the 6 year point as though it was never there.

Once gone, no one will see anything of his old debts.

[Deleted User]

sourcrates said:

kimwp said:

JTaylor82 said:

Yea but the mortgage lender wont know will they as it will be off my credit file

(I think) - the defaults won't be on your credit file, but the lender will still be able to see your debt - so this will reduce the amount you can borrow. Presumably paying off the debts at such a slow rate will not look good as well. It might be worth posting on the mortage board to see what an IFA's opinion is regarding getting a mortgage.

The whole entry, debt/account/default everything, will drop off his file at the 6 year point as though it was never there.

Once gone, no one will see anything of his old debts.

Lenders keep their own records. If the OP applies for a mortgage with one of his creditors he may find himself being told to jog on. 

JTaylor82

Thankfully my debts are not with any major mortgage lenders. I would ideally like to settle the debts but because our ages
i will be 45 before i could raise the deposit for a house. 

After 15 years of private rent   I kinda had enough and would like a home for family
so hopefully works out and look into an iva
In couple of years or so. 

Not ideal i know but i cant think of another alternative.

sourcrates

Lover_of_Lycra said:

sourcrates said:

kimwp said:

JTaylor82 said:

Yea but the mortgage lender wont know will they as it will be off my credit file

(I think) - the defaults won't be on your credit file, but the lender will still be able to see your debt - so this will reduce the amount you can borrow. Presumably paying off the debts at such a slow rate will not look good as well. It might be worth posting on the mortage board to see what an IFA's opinion is regarding getting a mortgage.

The whole entry, debt/account/default everything, will drop off his file at the 6 year point as though it was never there.

Once gone, no one will see anything of his old debts.

Lenders keep their own records. If the OP applies for a mortgage with one of his creditors he may find himself being told to jog on. 

Not many keep records longer than 6 years, for most banks its 6, Halifax keeps them for 7.

I successfully opened a new bank account with First direct, 6 years after my old account with them was included in my insolvency, full current account with OD and loan facility.

You tend to find lending institutions don`t hold grudges with ex customers who previously defaulted, business is business, and not many are penalised over the 6 year limit. 

[Deleted User]

sourcrates said:

Lover_of_Lycra said:

sourcrates said:

kimwp said:

JTaylor82 said:

Yea but the mortgage lender wont know will they as it will be off my credit file

(I think) - the defaults won't be on your credit file, but the lender will still be able to see your debt - so this will reduce the amount you can borrow. Presumably paying off the debts at such a slow rate will not look good as well. It might be worth posting on the mortage board to see what an IFA's opinion is regarding getting a mortgage.

The whole entry, debt/account/default everything, will drop off his file at the 6 year point as though it was never there.

Once gone, no one will see anything of his old debts.

Lenders keep their own records. If the OP applies for a mortgage with one of his creditors he may find himself being told to jog on. 

Not many keep records longer than 6 years, for most banks its 6, Halifax keeps them for 7.

I successfully opened a new bank account with First direct, 6 years after my old account with them was included in my insolvency, full current account with OD and loan facility.

You tend to find lending institutions don`t hold grudges with ex customers who previously defaulted, business is business, and not many are penalised over the 6 year limit. 

Opening a bank account is not the same as borrowing tens or hundreds of thousands of pounds. Some banking groups such as RBS, ironically since they were bailed out by the tax payer, have long memories, much longer than 7 years.