advise on Defaults

Jane91
Jane91 Posts: 67 Forumite
Debt-free and Proud!
in Credit file & ratings
Ive paid all of my debts off and there on my credit file as satisfied but ive still got 3 defaults listed, how will this affect me getting credit? im looking at buying a house


thanks



Jane
[STRIKE]Debt3 £1789.07 [/STRIKE][STRIKE]Debt4 £2508.36 Debt5 £2551.69 [/STRIKE]Debt6 £7500.00 Paid in Full[/STRIKE]

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Comments

  • matttye
    matttye Posts: 4,828 Forumite
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    You're unlikely to get a decent mortgage with three defaults, but may be able to get a sub-prime one.

    How old are the defaults? They stay on your report for 6 years from the default date. If they're almost due to drop off, you may be better off waiting.

    Have you checked all three of your credit reports? Any other adverse information such as CCJ's, arrangements to pay or late payments?
    What will your verse be?

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    PAID DMP

    When did you complete your DMP? As will have a material bearing on when a mortgage application being accepted will be a realistic possibility.
  • fermi
    fermi Posts: 40,546 Forumite
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    Jane91 wrote: »
    Ive paid all of my debts off and there on my credit file as satisfied but ive still got 3 defaults listed, how will this affect me getting credit? im looking at buying a house

    Were all the accounts in the DMP marked as defaulted? If so, then all trace of the accounts and defaults will be removed 6 years from the default date.

    If some were never recorded as defaults, they stay on your report for 6 years from the settlement date.
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  • Jane91
    Jane91 Posts: 67 Forumite
    Debt-free and Proud!
    I cleared all my debts off at the beginning of August using my inheritance from my dad, which cleared my dmp 18mths early.

    The defaults are on 3 of the debts but there all marked as satisfied now, I think one comes off in about a year the others are about 4-5 yrs to go
    [STRIKE]Debt3 £1789.07 [/STRIKE][STRIKE]Debt4 £2508.36 Debt5 £2551.69 [/STRIKE]Debt6 £7500.00 Paid in Full[/STRIKE]

    PAID DMP:j:j
    Loose Change:beer:
  • fermi
    fermi Posts: 40,546 Forumite
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    edited 24 August 2013 at 7:40PM
    So all the debts left on your credit file from the DMP are marked as defaults?

    Need to be clear, because if some debts from the DMP are still on your report but not marked as defaulted, they will take a bit longer to clear off your file.
    Jane91 wrote: »
    The defaults are on 3 of the debts but there all marked as satisfied now, I think one comes off in about a year the others are about 4-5 yrs to go

    However, due to the above you are going to struggle for 4/5 years at least while they are there. :(
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  • Jane91
    Jane91 Posts: 67 Forumite
    Debt-free and Proud!
    None of the others on the dmp are marked as defaults, just 3 of them
    [STRIKE]Debt3 £1789.07 [/STRIKE][STRIKE]Debt4 £2508.36 Debt5 £2551.69 [/STRIKE]Debt6 £7500.00 Paid in Full[/STRIKE]

    PAID DMP:j:j
    Loose Change:beer:
  • fermi
    fermi Posts: 40,546 Forumite
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    That is a pain as even when the defaulted ones come off, those undefaulted ones will stay until 6 years from the date they were settled, with the (presuambly) adverse history from during the DMP showing. Not as bad as the defaulted ones showing, but still not great until everything comes off.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Jane91 wrote: »
    None of the others on the dmp are marked as defaults, just 3 of them

    Being in a DMP has a far more detrimental impact on your credit file from a potential lenders perspective than defaults.
  • Jane91
    Jane91 Posts: 67 Forumite
    Debt-free and Proud!
    Surely the fact that I'm no longer in the dmp and that there shown as satisfied should make some impact?
    [STRIKE]Debt3 £1789.07 [/STRIKE][STRIKE]Debt4 £2508.36 Debt5 £2551.69 [/STRIKE]Debt6 £7500.00 Paid in Full[/STRIKE]

    PAID DMP:j:j
    Loose Change:beer:
  • Buzby
    Buzby Posts: 8,275 Forumite
    That requires intelligence.

    Possibly even a manual intervention as you will certainly fail any automatic check when a 'agreement in principle' enquiry would fail automatically due to th defaults.
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