Effect of very old debts effecting mortgage application?

Twins

Hi 

Please can anyone help put my mind at rest as I'm so worried.   I have a couple of old debts (6+ years ago), which I regularly pay back monthly via a company that took over the debt (I was on a DMP then self managed).   I've never missed a payment and since cleaning my credit history I worked hard in keeping in credit on my bank account and never using an overdraft.   I have rebuilt my credit score to excellent.  All old debts have dropped off my credit file.

We have now gone to apply for a new mortgage and it has been picked up from my statements that I am paying this X amount.  They want to know what it's for.  I'm worried that they will now think I am terrible with credit despite my clean statements and credit score.

How much of an impact do you think this will have on our application?  Literally feeling sick to the stomach right now.

Please help! 

Thank you!

K_S

Twins said:

Hi 

Please can anyone help put my mind at rest as I'm so worried.   I have a couple of old debts (6+ years ago), which I regularly pay back monthly via a company that took over the debt (I was on a DMP then self managed).   I've never missed a payment and since cleaning my credit history I worked hard in keeping in credit on my bank account and never using an overdraft.   I have rebuilt my credit score to excellent.  All old debts have dropped off my credit file.

We have now gone to apply for a new mortgage and it has been picked up from my statements that I am paying this X amount.  They want to know what it's for.  I'm worried that they will now think I am terrible with credit despite my clean statements and credit score.

How much of an impact do you think this will have on our application?  Literally feeling sick to the stomach right now.

Please help! 

Thank you!

@twins I'm assuming you declared the regular monthly payments for these debts on your application? It's hard to say what impact it may or may not have on your application as that depends on the numbers and other specifics of your application.

Twins

K_S said:

Twins said:

Hi 

Please can anyone help put my mind at rest as I'm so worried.   I have a couple of old debts (6+ years ago), which I regularly pay back monthly via a company that took over the debt (I was on a DMP then self managed).   I've never missed a payment and since cleaning my credit history I worked hard in keeping in credit on my bank account and never using an overdraft.   I have rebuilt my credit score to excellent.  All old debts have dropped off my credit file.

We have now gone to apply for a new mortgage and it has been picked up from my statements that I am paying this X amount.  They want to know what it's for.  I'm worried that they will now think I am terrible with credit despite my clean statements and credit score.

How much of an impact do you think this will have on our application?  Literally feeling sick to the stomach right now.

Please help! 

Thank you!

@twins I'm assuming you declared the regular monthly payments for these debts on your application? It's hard to say what impact it may or may not have on your application as that depends on the numbers and other specifics of your application.

That's correct, they were on the application as credit card debts but I'm still worried.  The amount for the one they've questioned is under £10 a month and what I've got left to pay is £850.  Just can't help feeling worried about it as just want this done now.  Thank you for your help.

stclair

Twins said:

Hi 

Please can anyone help put my mind at rest as I'm so worried.   I have a couple of old debts (6+ years ago), which I regularly pay back monthly via a company that took over the debt (I was on a DMP then self managed).   I've never missed a payment and since cleaning my credit history I worked hard in keeping in credit on my bank account and never using an overdraft.   I have rebuilt my credit score to excellent.  All old debts have dropped off my credit file.

We have now gone to apply for a new mortgage and it has been picked up from my statements that I am paying this X amount.  They want to know what it's for.  I'm worried that they will now think I am terrible with credit despite my clean statements and credit score.

How much of an impact do you think this will have on our application?  Literally feeling sick to the stomach right now.

Please help! 

Thank you!

You'll have to let me know how you get on as my brother is about to apply for a mortgage in the next few months he has loads of defaults which have fallen off his credit file but he's still paying them. He's only making a token payment of £1.00 as he is hoping the longer he pays the £1.00 the better the settlement figure he will be offered to clear them which has worked with alot of them but remainders are being tight with the settlement figures they'll offer..

ACG

Who is the lender? 
I did something like this with Natwest. They picked up on the arrangement to pay (its not a DMP if you are dealing with the lenders directly), I told them it was an old debt and they were fine with it. 

It was pre-covid so things could be different now, but I did check with my account manager before applying and all was ok. 

nicmyles

If the amounts are what you say (£10 a month and £850 outstanding debt) then I doubt that will have a significant impact. In the unlikely event it does, have you explored what it would cost to just clear it before starting again with a new lender?