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PinkRaven

Can anyone give me any idea if this can be resolved please?  My daughter and her partner are trying to get a mortgage.  My daughter has an excellent credit record but it has come to light that her partner has a bad debt she never knew about. 

Basically her partner was with another person just under 6 years ago and the ex put the water bill in her name unbeknown to her.  They split and she moved address.  No credit search has been done since then and now they applying for a mortgage it has come to light she owes a £300 debt she never knew about.  She never knew a domestic bill was put in her name and moved away totally unaware until now. 

She has now paid the debt off in full (not showing yet) but because of the almost 6 years of non-payment they just can't get a mortgage.  It seems very unfair that a bill was put in her name and she didn't know about it, moved away and has had this going on behind her back all these years.

They have found a house but cannot for love nor money get a mortgage because of this piddly little amount that she has now paid off.  They stand to lose the house they have found waiting for her payment to clear, but even then the black mark will continue.  She has other credit (such as mobile phone monthly payments and other small debts) that are all up to date etc.

Is there anything that can be done as this is just so unfair.

MorningcoffeeIV

A 6 year old default, for a small sum, especially now she has made payment, won't be a show stopper for a mortgage.  But she needs to use a decent broker.

Ensure that it did default so that it falls off imminently.

She could separately dispute the debt but that is going to take some time to resolve, if at all.

DE_612183

can she prove the debt was incurred after she moved out?

PinkRaven

Thank you.

The debt was incurred whilst she lived there but she didn't know the bill was in her name until now otherwise she would have changed it when she moved.

They are waiting for the debt to show as settled but it's not showing yet and they stand to lose the house as the sellers want to move quickly. Even when it does show, it still has the years of non-payment against her doesn't it?

I feel so sorry for them because they work hard and have no bad debts except this one hanging around their neck. Had she known about it she would have sorted it years ago.

MorningcoffeeIV

PinkRaven said:

They are waiting for the debt to show as settled but it's not showing yet and they stand to lose the house as the sellers want to move quickly. Even when it does show, it still has the years of non-payment against her doesn't it?
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They don't want to wait for that.  Firstly, lenders have a real time view so will see it sooner than they will and secondly, they can evidence the payment being made (unless they sent an envelope full of cash).

If they want the house, get on to a decent broker now.

PinkRaven

They are trying - so many mortgage brokers, banks and advisers spoken to so far. One last resort, someone calling tonight for a chat who claims to be able to get mortgages with bad credit ratings! Not sure how one place can and another can't but I'm not a financial adviser.

fatbelly

Are you sure this is the only issue? And that it was just an entry with a default, not a ccj?

My water authority does not report to credit agencies but does go for ccjs and they do show

P.s.a water debt would not accrue interest

PinkRaven

Not a CCJ that I know of. Just no payment or correspondence in just under 6 years and the debt has accrued interest in that time.

DE_612183

If it's accrued interest that I would suspect it's been passed to  third pary - are you sure there is no CCJ? Have you checked your credit file?

PinkRaven

I'll have to find out for sure but from what I've been told, not a CCJ. I may be mistaken it being a water company, but it's some domestic bill of some sort.

PinkRaven

Just spoke to my daughter and as far as she is aware it's not a CCJ