Defaults - 6 years nearly up.

LittleElf16

I’m new here. I have been debt for years after leaving a really abusive relationship. 

I have 3 defaults on my credit report. Two with Lowell and one with Cabot. They total to around £713.00.

I make two small payments each month one to Cabot and one to Overdales Solicitors.

Two of these defaults hits the 6 year mark in October and one in December.

I understand from reading here that they drop off your credit file after 6 years. 

My question is, as I have met a new partner and hope to get a mortgage next year, is after the drop off are they able to still be seen by any sort of lenders? Or is that it? They drop off your report and they are gone for good? 

I’m panicking about applying for a mortgage next year with these defaults. I’ve never been out of debt ever and really want a fresh start. 

Mark_d

After 6 years your defaults should automatically drop off your credit reports so they can no longer be seen by lenders.  I suggest you check your credit reports, before applying for any credit, to make sure they have been removed as expected.  If they have not been removed then you need to talk to the relevant credit reference agency

LittleElf16

Mark_d said:

After 6 years your defaults should automatically drop off your credit reports so they can no longer be seen by lenders.  I suggest you check your credit reports, before applying for any credit, to make sure they have been removed as expected.  If they have not been removed then you need to talk to the relevant credit reference agency

Thanks for replying. I will be checking them at the six year mark to ensure they have been removed. 

When applying for a mortgage or credit etc, can lenders see all the old defaults, every default that has ever been on your file or do they get completely wiped from everyone?

fatbelly

The whole entry goes completely. No-one can see them.

LittleElf16

fatbelly said:

The whole entry goes completely. No-one can see them.

Thank you. So when applying for a mortgage next year and I get asked if I’ve ever had any defaults, do I state yes, even though none will be showing anywhere? Is there some way they can check for past defaults?

sourcrates

No one will ask about defaults, most common questions are "have you ever been bankrupt" or "have you ever entered insolvency, such as an IVA"?

Once a default has gone its like it never existed, no trace anywhere.

LittleElf16

@sourcrates Perfect thank you. 

ManyWays

Are you planning on stoppng paying the three debts or carrying on, because if you stop the debt collectors can go for a CCJ even though the debt is no longer on your credit record, and if you carry on then the mortgage lender you apply to will see the payments to debt collectors on your bank statements and will know you have these old defaulted debts. It may be best to plan to settle the debts at least 6 months before any mortgage application. 

summerb64

I would wait a couple of months until after they drop off your credit report, also avoid the 3 lenders you defaulted with (if applicable). 

I had a debt which fell off my credit report, had a payment plan of a nominal amount per month which came out of my father’s bank account and I had a standing order to him. 

Told the mortgage broker everything so he knew who best to apply to and who to avoid (namely the creditor I defaulted with). And I was fine and completed almost 2 years ago. 

Good luck!