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    • GMac14
    • By GMac14 11th Jan 18, 1:49 PM
    • 55Posts
    • 8Thanks
    GMac14
    Help with old default on file
    • #1
    • 11th Jan 18, 1:49 PM
    Help with old default on file 11th Jan 18 at 1:49 PM
    Hi All,
    Im currently trying to fix my credit file with a view to getting a mortgage this late this year.

    I have been paying off as much as my old debt as I can, just finished off paying off 500 debt, another one has 300 left to pay which I should be able to clear in full next month. This leaves me with 956 default from July 2013 which I should be able to pay off over next 3 to 4 months and I am then left with 5,856 default, account start date March 2009, default date July 2013.

    Im going to struggle to pay off close to 6k. Do I wait until 2019 until this is then 6 years old or does this not make much difference as its not satisfied? Or do I have a decent chance at getting a mortgage with this still on there? I got a mortgage back in 2007 with Southern Pacific Mortgages (specialist lender) even though my credit file back then was in much more of a mess than it is now.

    Will it make a difference if I make attempts to pay this back?

    Any and all advice appreciated.
Page 1
    • zx81
    • By zx81 11th Jan 18, 1:52 PM
    • 17,213 Posts
    • 18,288 Thanks
    zx81
    • #2
    • 11th Jan 18, 1:52 PM
    • #2
    • 11th Jan 18, 1:52 PM
    Attempting to pay it back would help to deter the CCJ which I expect will follow just before 2019, and would give your credit file a further 6 years of damage.

    I think you will struggle to get a half decent mortgage with 6k remaining unsettled.
    • GMac14
    • By GMac14 11th Jan 18, 1:57 PM
    • 55 Posts
    • 8 Thanks
    GMac14
    • #3
    • 11th Jan 18, 1:57 PM
    • #3
    • 11th Jan 18, 1:57 PM
    Appreciate the response. The Company listed on the debt are not in touch with me, trying to get hold of me etc. Is it common practice that they would go for a CCJ before the debt becomes statute barred as there has been no contact or correspondence?
    • zx81
    • By zx81 11th Jan 18, 2:49 PM
    • 17,213 Posts
    • 18,288 Thanks
    zx81
    • #4
    • 11th Jan 18, 2:49 PM
    • #4
    • 11th Jan 18, 2:49 PM
    It's not uncommon. It can be more cost effective to just issue a batch of CCJs as the 6 years comes around, rather than waste time and money on calls and letters.

    They may take the view that if you didn't want to pay the first time around, another couple of letters won't change your mind. But a CCJ might, especially if that means a total of 12 years on your credit file.
  • National Debtline
    • #5
    • 11th Jan 18, 5:27 PM
    • #5
    • 11th Jan 18, 5:27 PM
    Hi GMac14


    The large debt you refer to will drop off your credit file 6 years after the date of the default, regardless of whether it has been satisfied. That doesn't mean you no longer owe the debt but it may have become statute barred, meaning they've run out of time to obtain a CCJ.


    It is possible they could obtain a CCJ sometime between now and when the debt is due to drop off. Under the new debt pre action protocol a creditor is expected to send a letter before claim. That is a letter warning you they are considering court action. However if you're not in a position to make an offer they find acceptable you could still find court action is taken.


    Unfortunately there's no way to second guess what they will do, but with regards to getting a mortgage it's best to speak to a specialist mortgage broker who can give you advice on how this will impact your mortgage application, and which lenders are best to approach in your situation. Good luck with it.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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