Mortgage application ADVICE needed

summerb64

Well, I’ve recently had 1 default on my credit file that dropped off YAY.  There was still a balance remaining on the debt (the debt was with barclaycard, sold to PRA). 

I followed some advice on legal beagles and sent a CCA request to PRA, who came back to me and told me that the debt was unenforceable. 

I no longer pay anything towards this debt, and they cannot go for a CCJ as the debt is unenforceable. 

I’m now really unsure whether this needs to be declared when appointing for a mortgage because;

- it doesn’t show on any credit reports now. 

- it’s unenforceable. 

- I’ve not made payments to this account for over a year. 

I just wanted to raise the question here as, Im worried about not giving full information on my application (even though I wouldn’t be applying to Barclays and this is my only debt) 

Hoping some mortgage brokers on this site can guide me or if I’m worrying for nothing. 

Thank you!

JMA74

use a mortgage broker,  tell them everything, and they will go to a lender who doesnt require a declaration that would trip you up

For instance, Santander has a question that says 'have you ever....', whereas Halifax question says 'in the last 6 years....'

Subtle difference but may be the difference between a pass and a fail.  

So get a broker, be honest, and you should be fine

summerb64

Thanks a lot for your advice!

I just called the customer service team at L&C and the person I spoke to said that if I’ve not been making a payment and it’s not on my credit report it shouldn’t matter as they only ask for within the last six years. I then asked if it’s possible to only apply to lenders who never ask ‘have you ever defaulted’ and the person rather confusingly said “we wouldn’t know which ones do or don’t until we apply” 😅

Polmop

I dont rate L&C. they only seem to be okish if everything is straightforward and then I still have my doubts. We have gone with Mortgagekey and they seem so far to be great 

summerb64

Update on this - I found a local broker through a family friend, told him about the situation and he applied for an AIP with Halifax which was absolutely fine…

I was a little worried about the fact it was only deemed unenforceable recently but he said it isn’t showing on my credit records or bank statements so isn’t an ongoing comment. So happy days. He also said that he has never seen an AIP that passed with Halifax changed to a decline at full application and this wouldn’t as credit records and bank statements will match AIP.  So fingers crossed. 

JMA74

Fantastic News.  I too have never had a Halifax AIP decline on credit at application stage so i would be really confident if i was in your shoes. 

HWBY

Polmop said:

I dont rate L&C. they only seem to be okish if everything is straightforward and then I still have my doubts. We have gone with Mortgagekey and they seem so far to be great 

Second this - L&C messed up inputting our application details, confusing loan amount for what we were buying the house for. Took nearly a month and a lot of work on my part to resolve, and we very nearly lost the house. They stopped answering my emails and screened my calls.

They are still to acknowledge it was their fault or apologise. Avoid at all costs.