Mortgage Application - Debts no longer on credit file.

jackjones01

I’m planning to apply for a mortgage, hopefully using a broker, within the next three months. I could borrow around £343k, but I only need £250k. I have around £8k of debt from a previous relationship that is no longer on my credit file. I’ve been making token payments to the DCAs for some time, hoping to get settlement figures, but that hasn’t materialised as the DCA won’t budge. 

These debts are being paid from a separate account, not from the account my salary or regular bills come from. I will, of course, be fully transparent with my broker, but I’m just wondering if this could potentially be an issue when applying.

Any thoughts would be very much appreciated. 

ACG

It should be fine. 
We have had them in the past where we put down the debts as an expense, but thats about it.

We have had underwriters ask the question "who is lowell/PRA etc and what is it for" but it is only to clarify that the debts are historic hence no longer on the credit report. 

As you say, be open and upfront about it and it should be fine. There is nothing worse than trying to hide something and then it comes out in the wash. 

Isthisforreal99

Just try and avoid any lenders you may have defaulted with - although not on your credit file they may well still have your default recorded internally.