Defaults and mortgages

Wardworried52
Wardworried52 Posts: 8 Forumite
First Anniversary First Post
edited 15 January 2023 at 8:12AM 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

Comments

  • fatbelly
    fatbelly Posts: 20,428 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    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?
  • Rob5342
    Rob5342 Posts: 1,445 Forumite
    First Anniversary First Post Name Dropper
    edited 15 January 2023 at 12:18PM
    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.
  • sourcrates
    sourcrates Posts: 28,802 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Re-mortgaging with the same lender, usually does not require a credit check.

    Only applies if your looking at a new lender.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • 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
  • 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
  • sammyjammy
    sammyjammy Posts: 7,364 Forumite
    Name Dropper First Anniversary Photogenic First Post
    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 "
  • sourcrates
    sourcrates Posts: 28,802 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
Meet your Ambassadors

Categories

  • All Categories
  • 342.9K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235K Work, Benefits & Business
  • 607.6K Mortgages, Homes & Bills
  • 172.9K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards