Another Northern Rock Question

yabeauty

My husband and I have had a Northern Rock mortgage for 18 months on a 2 year fixed rate of 4.9%.

Our mortgage is about 70% LTV and we can make our payments with no problems.

We have just had the standard letter from Northern Rock so it would seem to make sense for us to look elsewhere for a mortgage when our deal ends in October...........

However..................in the past 12 months HMRC have taken out a decree at the Sherrif Court for a repayment of a tax bill that I was unable to pay within 7 days....it's a long story and involved accountants and lawyers....I have now repayed this debt to HMRC but obvioulsy the decree will have really damaged my credit rating and we're concerened we won't be able to secure a new mortgage elsewhere.

Does anyone have any suggestions?

dimbo61

how do you know have you written to the credit reference agencies and
asked for a copy of your credit report and score (it costs £2 per agency ) so
get on the phone and check !!!
you had a tax bill and paid it , if you find something on your report then ask
the HMRC to contact the credit agency and correct it .
you have a good LTV and have paid the mortgage for last 2 years so contact
a broker and start looking round at what offers you can get GOOD LUCK

yabeauty

Thank you for your reply, however I do know for sure that a decree was granted as it was negotiated by my lawyer as HMRC would not permit me any time to pay so to protect themselves they'd only agree a repayment plan if decree was granted - I know seems ridiculous but true (the debt was for less than £10k).

We are presuming the mortgage lenders will look very unfavourable on a court decree (think this might be the same as a CCJ in England).

UK007BullDog

Yes, definately one for the brokers. I suggest you ensure that the decree shows up on your credit file as paid and settled before looking for a new lender and yes it has damaged your credit file.

chappers

Having the decree marked as settled may help and if there are any extenuating circumstances surrounding the reason for the debt/decree ie they would not allow a payment plan without a decree you can make a note and have it placed on your file.
Not sure it will help entirely but it might.
Get on the case as soon as you can as it takes awhile to appear on your file.