Defaults and mortgages

edited 15 January at 7:12AM in Debt-free wannabe
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Wardworried52Wardworried52 Forumite
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edited 15 January at 7:12AM in Debt-free wannabe
Hi all, 

I was wondering if you could help.

I'm 4 years into a DMP with SC. It's all going well barring a loan with Yorkshire bank, now Virgin Money.  Unfortunately they have decided not to default my account which means it's marked as 'in arrears' on my credit file. This wasn't a problem until we started looking at getting a new mortgage. According to SC been in arrears means we can't get a mortgage.

I wrote to Virgin and asked them to default my account in lines with the guidelines, after 6 months of waiting for a reply to my official complaint and getting the ombudsman involved they have advised that they wouldn't default my account as I didn't meet the criteria for a default, the ombudsman agreed with this. 

The one thing that is puzzling me is that all my other creditors have defaulted my account without a problem included Virgin Money who I have a CC with. I can't see why I meet the default requirements for 8 other creditors including virgin themselves and not with this one when I did the same for all.

The ombudsman stated I need to speak to virgin about their commercial decision but Virgin will not speak to me as the ombudsman as agreed with them.

Does anyone have any advise about getting defaults retrospectively added or getting through to virgin money. They have been terrible throughout, I've been trying to sort this for over a year in total.

If this can't be sorted does anyone have any experience of getting a mortgage whilst having an account in arrears?

Thank you in advance x

Replies

  • fatbellyfatbelly Forumite
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    It's definitely not as black and white as stepchange make out. If you go through a mortgage broker you will get some offers even with a defective credit history. Obviously with 8 defaults that's going to be a challenge.

    Regarding Virgin, the devil's in the detail here. Did the ombudsman's ruling explain why you would not be defaulted?

    Would they default you if you just stopped making payments?
  • edited 15 January at 11:18AM
    Rob5342Rob5342 Forumite
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    edited 15 January at 11:18AM
    I had similar problems, neither Aqua nor Virgin defaulted me despite being on a dmp for over a year. I decided to stop paying them to try and force a default, it worked with Aqua but Virgin still haven't defaulted me despite not having paid for 7 months. I've written to then to complain and I'm waiting for a response at the moment. It feels like they want to make things difficult for me.
  • sourcratessourcrates Forumite
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    Re-mortgaging with the same lender, usually does not require a credit check.

    Only applies if your looking at a new lender.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Wardworried52Wardworried52 Forumite
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    fatbelly said:
    It's definitely not as black and white as stepchange make out. If you go through a mortgage broker you will get some offers even with a defective credit history. Obviously with 8 defaults that's going to be a challenge.

    Regarding Virgin, the devil's in the detail here. Did the ombudsman's ruling explain why you would not be defaulted?

    Would they default you if you just stopped making payments?
    Hi, 

    Thank you for replying. 

    Virgin stated - my account doesn't meet the clear regulations for defaulting accounts. A default cannot be recorded unless the arrangement was previously broken before.  

    The ombudsman stated - they were right to reject the request to be defaulted in line with the ICO's principles for the reporting of arrears, arranements and defaults at the credit reference agencies. They went onto based on the dates you've provided it seems a payment plan was set up before serious/sustained arrears were recorded.

    I'll maybe try another mortgage broker?

    Are there different rules for loans and cc. It's really odd that virgin have made a different decision in to parts of the organisation. 

    Thanks x
  • Wardworried52Wardworried52 Forumite
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    Re-mortgaging with the same lender, usually does not require a credit check.

    Only applies if your looking at a new lender.
    Can you get a mortgage for a new property by remortging? Would it be worth while me speaking to my current mortgage?

    Thank you x
  • sammyjammysammyjammy Forumite
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    Re-mortgaging with the same lender, usually does not require a credit check.

    Only applies if your looking at a new lender.
    Can you get a mortgage for a new property by remortging? Would it be worth while me speaking to my current mortgage?

    Thank you x
    No, if you are buying a new property you will need a new mortgage, even if you go with the same lender they will credit check you.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • sourcratessourcrates Forumite
    26.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Re-mortgaging with the same lender, usually does not require a credit check.

    Only applies if your looking at a new lender.
    Can you get a mortgage for a new property by remortging? Would it be worth while me speaking to my current mortgage?

    Thank you x
    No, if you are buying a new property you will need a new mortgage, even if you go with the same lender they will credit check you.
    Yea, didn`t read the full thread, my bad.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
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