69 thoughts on “Will my partner’s default hit our mortgage chances?

  1. Brian Stewart

    Hi Darren the mortgage bank has suggested my daughter pay off two outstanding credit agreements prior to mortgage approval. She paid these off in full last Saturday and the question is how soon could her credit rating reflect this change as the banks have ask her to contact experian.
    I wasn’t sure whether I should her details, please advise.

    Regards

    Brian Stewart

    Reply
    1. Neil Stone

      Hi Brian, most companies will update information with us on a monthly basis so it will depend on when the next monthly update is due to be sent as to when it will show on her report.

      If your daughter contacts us directly at uksocialsupport@experian.com with her details (name, date of birth, address) we can check to see when updates are expected for the companies.

      Kind regards
      CreditExpert Neil

      Reply
  2. Emma

    Hi my partner has a credit rating of 986 mine is 650 in 2010/11 I had month on month missed payments so on file is marked as a 1 every month I was a student struggling at the time this was credit card missed payments and one in2012 none since what are our chances of a mortgage pls . We already have a mortgage before I missed the payments . Both have excellent jobs now too. Thanks

    Reply
    1. CreditExpert Jarv

      Hi Emma

      It’s great to hear you and your partner now have excellent jobs and haven’t had any further missed/late payments to your accounts, by not having late or missed payments might be viewed more positively by future lenders when your looking to obtain credit/mortgage.

      You may find the guides here helpful for when you apply for your mortgage – http://www.experian.co.uk/consumer/improve/guides/index.html

      Regards
      CreditExpert Jarv

      Reply
  3. Billy

    Hi me and my wife are truing to apply for a morgage. I can get one no problam but not of the size needed to buy a house in are erea. If my wife applies we get declined. She had a defulted acount which has now been paid in full and waiting to be updated. Problam is we have found the house without the morgage. Is it posible to use my wifes income with my income to proove to the lenders what we can aford as a house hold. Or is there any way of showing the lenders that we are now dept free?

    Reply
    1. CreditExpert Jarv

      Hi Billy

      Great to hear that you and your wife are looking to apply for a mortgage, I understand that there is a factor such as the defaulted account you have mentioned that is causing an issue, the defaulted account will remain on your Experian Credit Report for six years from the defaulted date regardless if the balance is fully paid, we receive updated information from your lenders on a monthly basis so if this hasn’t been updated as you have been waiting to receive their update please let us know as we would be able to query the information that has been provided directly with the lender on your behalf.

      Your Experian Credit Report will not show information such as income so you may want to speak to your lender directly to answer that for you, if you wanted to provide your lenders with a copy of your Experian Credit Report to show the account information that has been recorded and their balances you can find details here, I wish you both all the best of luck with your mortgage, you may also find this page useful as it explains the impacts of missed payments/defaults that may effect credit/mortgage applications.

      Once you’ve viewed your Experian Credit Report and wish to discuss the information that has been recorded or would like us to talk you through it, please don’t hesitate to contact us

      Regards
      CreditExpert Jarv

      Reply
  4. Mags

    Hi

    I had 2 defaults with online catalogues in 2010. I am now looking to apply for a mortgage with my wife who has an excellent credit history. Since then my credit history is good! Our combined salaries are over £110’000.00 per year..

    What are our chances of getting a mortgage with my defaults 5 years ago..?

    Reply
    1. CreditExpert Neil

      Hi Mags, thanks for your question.

      I understand that you are concerned about defaulted accounts for 2010 will have on a mortgage application. As the defaults get older they will have less of an impact on any applications that you make, and six years from the date of the default they will come off the report completely.

      It is always up to the lenders as to what decision they make, and what you may find is although the defaults don’t stop you getting a mortgage you may find it harder to get the better deals while they are on the report.

      You may want to take a look at our guide on getting ready for a mortgage here.

      I certainly wish you all the best when you are ready to apply.
      Kind regards
      CreditExpert Neil

      Reply
  5. Jess

    Haia!

    Me and my partner are looking for a morgage around december, January. He has excellent credit but i have 2 defults since 2013 and start of 2014, as i lost my job so couldnt keep up with the payments. Am i to find a morgage? What shall i do next? Nothing has happened for about year and a half now as im in employment and everything gets payed on time.

    Reply
  6. Nicky

    I understand that you have to report the data you are given from companies and have no control over this.

    It’s the companies that are able to add defaults without any prior notice that cause much of the damage, defaults are the single most common reason mortgage applications are declined.

    Please share my petition to stop these companies reporting defaults without warning or notice.

    Click this link to see your petition and start sharing it:
    https://petition.parliament.uk/petitions/120003

    Reply
    1. CreditExpert Neil

      Hi Nicky, thanks for getting in touch.
      Before a default is recorded companies should always contact you to notify you of their intention to default the account, and give you the opportunity to bring the account up to date.
      If you have information that is on your report you think is wrong, contact us and we can query the information with the company for you.
      Regards
      Neil

      Reply
  7. GINA ALUKWU

    I have some defaults which I have since settled and they are now showing satisfied. My brother has got a mortgage with Halifax and he wants to add me on the mortgage, will these defaults impact on him adding me on his mortgage with Halifax since I am now debt free and have a good paid job.

    Reply
    1. CreditExpert Neil

      Hi Gina, I understand that you are concerned about the impact your old defaults could have on your brother.
      If he adds you to his mortgage then it is likely that a financial connection would be recorded between you. This would mean that lenders may then search your information when looking at your brother’s report, due to the financial connection. They may then take your information into account when considering him for credit, so sadly this could mean that your defaults would affect his future applications.
      You can find out more about financial associations here .
      Kind regards
      Neil

      Reply
      1. Jay forward

        Hi, me and my partner are applying for a mortgage in the next 4/6 months. My credit report and score are both good, and I haven’t had a payment issue in more than 2 years. The payment problem i had was a missed payment and it was resolved straight away. I have no other debt other than car finance. However I have taken out a few ‘payday loans’ in the past and I’m worried they’ll affect me getting accepted.

        Reply
        1. CreditExpert Neil

          Hi Jay, it is always up to the lender as to how they view a payday loan and there is still some debate as to whether lenders will see a pay day loan as negative. Your Experian Credit Score treats a payday loan in the same way as any other loan. Our Ask James page covers this in more detail here. You might also find our guide to preparing for a mortgage application useful here. kind regards Neil.

          Reply
  8. Rhodri Thomas

    Hi,
    My girlfriend used to have a mobile phone account with Orange now EE, the contract was in her name but her father paid for it. She cancelled the contract over the phone in 2010 and due to an error on their part she was still being charged a monthly fee. Once she realised, her father stopped payments and applied for a direct debit indemnity. Having stopped payments Orange contacted her with regards to missed payments and having spoken to someone over the phone they claimed the contract was never cancelled. She assured them she had spoken to someone and cancelled it and the usage from the period she cancelled it was exactly the same (that is none). However Orange claimed it had not been cancelled and she owed the fee.
    Having sent the account to a third party debt collector she received letters threatening action unless she paid. She explained the situation to the debt collectors (there were two separate companies used) who were quick to apologise and passed the account back to Orange. She sent correspondence to Orange with regards to the mistaken default and never heard anything back from the company until the direct debit indemnity went through last year (as a result of threatening to take it to the Ombudsman).
    We were in the process of applying for a mortgage recently when she was horrified to discover that she had been denied due to a poor credit rating. She signed up to Experian in order to query why and discovered Orange had placed a default of over £1500 on her credit file. Not once has the company contacted her with regards to this default nor notified her in anyway that this debt is outstanding. The default was placed last year. I on the other hand have a credit rating score of 999.

    Could you please advise us on what to do next,

    kind regards

    Rhodri Thomas

    Reply
    1. CreditExpert Neil

      Hi Rhodri, finding that you have a default recorded on your report can certainly be distressing, especially if you don’t believe that it is correct.
      If your girlfriend contacts us to let us know the details of the account and why she believes it is incorrectly recorded, we can then raise a query with Orange on her behalf.
      While we do this we will mark the entry as disputed, so that anyone searching her report will know that it is being investigated. Once we get a reply from Orange then we will contact your girlfriend to let her know what they have agreed. Should they believe the information is correct, then we would be able to help her with the next steps that she can take, including adding a notice of correction to the entry to explain her point of view, and escalating the matter to the Office of the Information Commissioner.
      For more about the dispute process take a look at our Ask James page here and we look forward to hearing from your girlfriend so that we can help her further.
      Kind regards
      CreditExpert Neil

      Reply
  9. Kelly

    Hi, I had 3 defaults 5 years ago which have all been satisfied for a while now. My partner and I are looking to apply for a mortgage in a few months time. He has never had any issues with his credit. Could we maybe get a mortgage through a broker? Or will we have to wait for the 6 years to pass? I also have 1k outstanding on a credit card which is not adverse and no payments have been missed. Should I pay this off before applying? Thanks

    Reply
    1. CreditExpert Neil

      Hi Kelly, as defaults get older they will have less of an impact on your credit report, however some lenders may still be concerned that the defaults occurred. While older defaults may not prevent you from getting a mortgage, you may find that the more competitive offers are not available to you.
      We can’t provide financial advice on which accounts you should pay, but you may find our online guide on preparing your credit report for a mortgage application useful, which is available here .
      We certainly wish you all the best with your application when you are ready to take the plunge!
      Kind regards
      CreditExpert Neil

      Reply
  10. Anthony

    Hi, my case is very tricky. Me and my pregnant girlfriend are desperate for a mortgage and originally planned to go through with an application Jan 2017. We were told by a mortgage advisor that we can only apply from 3 years of the settlement date. Here’s the tricky part. I have 4 defaults on my credit report. 3 of which I only found about recently.
    1 Bank. This is the one I was aware of and caused me the most stress. Without going into too much detail I believe the default is unfair as the 700 defualt balance is purely charges and not credit related. This was due to the fact that the bank in question would not allow me to have an overdraft and the account was sold to me as not being able to go overdrawn. The account did however let me go overdrawn and being the young, naive and very financially retarded person I was at the time this resulted in the bank charging me £75 in charges every time. The bank only attempted to collect this when there was no money in my account leading me to go overdrawn month after month. After a period of time I decided to move accounts and then £75 turned to 700 and a default on my account. This was settled Sep 2014. My question is how do I get this removed? If I complain as there is no proof of postage that they sent the default notice to me and get the financial ombudsmen involved to refund charges do you think I have a chance of saying this was unfair? Technically any company has to pay the ombudsmen £550 once they are involved however I would rather just get their agreement to remove the default.
    2. Media company defaulted my account March 2015 for £38 for a final balance after me moving address. I was completely unaware of this default and after speaking to them the bill was only generated after I had moved meaning I had no recollection of this outstanding balance even though I spoke to them numerous occasions they never highlighted this. Have I got a shot at getting this removed?
    3 Mobile phone company £250. Again this one has only just appeared and this is from a mobile that was confescated by the police for no fault of my own. The default date is 17/04/2010. It has not been settled as I only just seen it. Will this completely disappear on 17/04/2016 even though it is not settled and am I best leaving this to clear itself as I am worried now that if I contact them it will remain on my report and damage the time it will take for me to apply for a mortgage
    4. this one is settled and due to be cleared completely Nov 2016.
    It’s a big mess and very stressful and I really don’t know where to turn. I agree my attitude towards my credit has completely changed and now I am older, have no debt, 35k job and very low outgoings and savings with perfect repayments over the past 3 years. Any help you can give me I would be so grateful for as I really don’t know what to do. Thank you so much.

    Reply
    1. Emma Beardsley

      Hi Anthony, congratulations on the great news of having a baby! I understand that it can be a stressful time when applying for a mortgage especially if you didn’t know about some of the debts you have.
      In regards to the debt with the bank, they should have issued a default notice and should be able to provide proof of this. If you wish to take this to the financial ombudsman then they will ask that you have raised this as a formal complaint with the company first. If you have already raised a complaint and they have given you a final response then the financial ombudsman may be able to look into this further.
      The media company again should have made you aware of the final payment and sent a default notice. If they have sent the relevant correspondence/tried to contact then they may not remove but again you would need to contact them directly to raise a complaint.
      The mobile phone default will be removed after 6 years so if its dated 17/04/10 when you check your report on 18/04/16 this will have been automatically removed and will no longer effect your report.

      I hope you can get some them resolved, however if they do remain on file it does depend upon the lender if they will accept your application. Another thing to bare in mind as well is that all lenders have their own criteria, so one may accept with defaults and others may not.

      You may find some of these links helpful;
      http://www.experian.co.uk/consumer/improve/guides/demystifyingyourcreditscore.html
      http://www.experian.co.uk/consumer/credit-education/improve-credit-rating.html
      http://www.experian.co.uk/consumer/questions/askjames359.html

      Kind Regards,
      CreditExpert Emma

      Reply
  11. Kirsty

    Hi I recently applied for a mortgage which got declined as I owe £500 on a credit card and this has put a default on my credit rating. If I pay this off will I have a chance of getting a mortgage? Thanks

    Reply
  12. Richard Martin

    Hi,

    Myself and my wife are currently looking to renew our mortgage, however back in October of last year we recieved a letter from the Halifax saying they had defaulted an old joint account we used to use and that the debt (£570) had been passed on to a collection agency. This has now been payed off in full but my complaint is that we were never informed that the account was going to be defaulted and therefore not given the opportunity to settle it. Is it possible to get this default removed?

    thanks, Rich

    Reply
    1. CreditExpert Neil

      Hi Richard,
      We can’t amend the information without the consent of the company, but if you believe a default has been recorded incorrectly we can contact the lender on your behalf to dispute the information.
      While we do this we will mark the entry as disputed, so anyone searching your report will know it is being investigated.
      We will then let you know the outcome of the dispute, and what steps you can take next if the company believes the information is recorded correctly.
      You can find out more about our dispute process here
      Kind regards
      Neil

      Reply
  13. sharon

    Hi
    We are looking into getting a mortgage and we have been offered one in principle but I have made late payment on a catalogue which is now been payed off will this affect our chance of getting the mortgage that we have been offered in principle
    Thank you

    Reply
    1. CreditExpert Neil

      Hi Sharon, thanks for your question, every lender will have their own criteria as to what they are prepared to accept when they review your credit report.
      If the late payments were over a year ago, and you were not 3 or more months in arrears then this would be likely to be of less concern than if the late payments were recent, or if the account was considered delinquent due to missing consecutive months payments.
      You may also find our guide to preparing your report for a mortgage application useful here.
      Kind regards
      CreditExpert Neil

      Reply
  14. Carla

    My husband has impeccable credit but I defaulted on some loans three years ago. We have AIP from NatWest and they can lend us up to £300,000. We only need £200,000 with 10% deposit we have. Got application form to complete and it says state details of defaults. Do I have to state these in full as one was a NatWest loan but three years ago

    Reply
    1. CreditExpert Neil

      Hi Carla, thanks for your question.
      We keep defaulted information on a credit report for six years from the date of the default, after this time they are automatically removed. If the defaults are from 3 years ago then the lender will be able to see these on your report still. If you would like to know more about preparing your report for a mortgage application take a look at our guide available here.
      Kind regards
      Neil

      Reply
  15. Sam

    Hi,
    I have defaults of 13000 pound and it’s coming to 6 years point in this September 16. I’m paying 200 pound monthly to this default account. I am looking for property 150k to 180k. I can put deposit of 18000 pound. My early income is 37000. Is there possibility that I can get morrgage and also use govt help to buy.
    Thanks

    Reply
    1. CreditExpert Stuart

      Hi Sam, I understand that you are looking to apply for a mortgage at this time. If you are looking for financial advice, there are free and impartial services available such as the Money Advice Service. You can visit their website here. Their website provides free tools and guides as well as web chat support and a contact number for you to speak to someone directly.

      You might also want to check out our guide which can help you in the process for applying for a mortgage.

      Thanks, Stuart

      Reply
  16. Clair

    Have come away from a meeting with the bank to get my mortgage application completed and am devastated to discover that there is a default registered on my report.

    I transferred from one bank to another in 2013, the transfer should have been of the entire account e.g. Direct debits, standing orders and overdraft. It seems from what they could show me that the overdraft never transferred and seems to have sat there, accruing costs, and is showing now as in default.

    I don’t recall having received any correspondence from them and find it alarming that 3 years on that I’ve never once been chased for money. If the mistake is mine then I’m more than willing to pay it, however this default now means that I’ve been refused a mortgage.

    Do I have to wait a full 6 years now for this to be reflected on my report or would the previous bank be able to remove it?

    Reply
    1. CreditExpert Stuart

      Hi Clair, I understand how being turned down for a mortgage after discovering a default on your report can be devastating and we can help you with this. As there is a default on your report, you might want to contact your previous bank to see if they are able to look into what happened and to see if they can resolve this issue for you.

      If the default has been correctly registered on your report, then unfortunately this would mean that this would stay on your report for the six year period. If you are concerned about what steps if this is the case, you might want to check out this link. You might also want to view a copy of your Experian Credit Report.

      Hopefully if this issue is resolved, I’d also recommend that you check out this great guide on what to do if you are applying for a mortgage.

      Thanks, Stuart

      Reply
  17. Ashley

    Hello,
    I have a default of £51 to 02 from 2014 which i paid off last month. Apart from that everything else on my credit report is good, I also have a well paid permanant job. I have a telephone meeting next week with leeds building society and have read that their criteria accepts defaults within the last 4 years but one of the conditions is that it is settled within 3 months. Do lenders ever make exceptions and take into consideration other factors or do they have to stick strictly to the criteria? Thank you

    Reply
    1. CreditExpert Joe

      Hi Ashley, each lender will have their own scoring and criteria when it comes to deciding if to accept your application or not. It’s not just the credit report that lenders will look at when you apply, they will take in to account various non-report factors such as your job and affordability. You can find out more information on how lenders make their decision on this video here. We also have a mortgage guide that contains lots of helpful tips. I wish you all the best with your application, Joe

      Reply
  18. Claire Harrison

    Hi,

    I have got a good credit rating and my partner would do were it not for a £20 payment on an account ten months ago. He closed down a credit card when the balance was zero but unbeknown to him a £20 charge was added to the account. He didn’t realise until months later when he paid it off immediately but it now shows on his credit record as six unmissed payments.

    The rest of his accounts before/during/since that time are all perfect including the mortgage and his two credit cards so we’re devastated that just one outstanding balance of £20 can have such an adverse effect on his credit score. We’ve had a mortgage for 11 years and have two credit cards each, all of which have balances of less than 50% of the limits. We want to apply for a mortgage in 1-2 months and don’t know what to do about his poor credit rating but have two questions:

    1) I realise that it is down to each mortgage lender’s set of policies but do you know that if in general, lenders are willing to consider overlooking the so called default if we show them the paper copy of our reports which clearly show that activity on all our other accounts is impeccable?

    2) Do you think the credit card company to whom my partner owed the £20 would consider ‘correcting’ the ‘default’?

    We have been waiting a long time to buy our dream home and have been waiting patiently for the right one which is now being built. I can’t believe that we could miss out on it due to a one off £20 payment. I understand you can’t guarantee anything but in your experience do you think the mortgage lenders are likely to be pragmatic about this?

    Thanks for your help.

    Reply
    1. CreditExpert Stuart

      Hi Claire,

      I full understand how this is concerning for you especially as you are looking to buy your dream home. You might want to suggest to your partner that he talk to his lender about the charge that was made on the credit card that he closed down ten months ago to see if they would consider clearing the default on their report.

      When lenders look at your partners report, they would take a look at all the information seen on your report and would also take into account the other accounts which would be listed on your report. You partner might want to consider adding a notice of correction to your report so that lenders can take your partners comments into consideration as well.

      You might also want to check out this guide for the mortgage application process as well.

      Best of luck,
      Stuart

      Reply
  19. Steve

    Hi

    We have got a meeting to sort out our mortgage on Thursday and I am a bit worried about my 8k on credit cards, I have never missed any payments on my cards, phone etc.
    Our mortgage in principle we where offered was higher then we needed. We have got 90k deposit and my girlfriend has no debts and a high credit rating. Will we have any problems?

    Reply
    1. CreditExpert Joe

      Hi Steve, each lender will have their own criteria for if to accept you or not, so how they view balances on cards will vary from application to application depending on your situation and their criteria. This video explains further. As you already have a mortgage in principle it sounds like you are quite far in to the process but you may still find this mortgage application guide useful. Regards Joe

      Reply
  20. Janice

    Hi
    I have had a default put on my experian which would have defaulted back in 2014 maybe even before then but it is registered as February 2016 which is indicating to lenders I have defaulted recently which isn’t the case! I have contacted Welsh water requsting the default date to be changed and they said that as they only started registering defaults in 2014 the date will remain. Can they do this? I am trying to get a mortgage and I’m finding it impossible with such a recent default…. can you offer so.easy help please?

    Reply
    1. CreditExpert Joe

      Hi Janice, The default date on the credit report should be the same date the default was placed against you, defaults do remain on your credit report for 6 years from their date of default. We are able to query accounts with lenders for you if they are incorrect. Please contact us and we’ll be more than happy to do this, our contact details can be found here. Regards Joe

      Reply
  21. Amanda coyne

    Hi I have a mortgage with Natwest I am reapplying for a new account for more money my credit rating is 430 I have missed a few catalogue payments but there all up to date were do I stand can I write a letter

    Reply
    1. CreditExpert Neil

      Hi Amanda, lenders will look at missed payments when considering you for credit. Recent missed payment will be seen as negative by lenders but as they get older they will have less of an impact on your report. You can add a Notice of Correction to your report to explain why the payments were missed. Lenders can then take these comments into account if they wish. Having a Notice of Correction on the report will mean that your report will be referred out of automated decision making processes so that the comments can be read. You can find out more about this here. Kind regards Neil

      Reply
  22. Steven

    Hi. My partner & i are looking at getting a mortgage, my wife has a great credit rating but i have 4 defaults dating back to 2014 when were not in a good way financially but i am in the process of paying them off. My question is could my wife apply solely but use my income in the application but not have me on the mortgage as the defaults would show. Thanks.

    Reply
    1. CreditExpert Joe

      Hi Steven, this would depend on the mortgage provider’s requirements, if you are using both incomes for the application then they may want to include both of yourselves on the application. If you contact your Mortgage adviser/provider they should be able to tell you. Regards Joe

      Reply
  23. Ben Sherman

    Hi,

    I have defaulted accounts on my credit file. Could you help please by answering some questions:

    – Is it possible to negotiate with my creditors to remove the default notice from my file (and move to ‘settles accounts’) upon full payment of the outstanding balance?

    – Do creditors have the ability to remove a default notice from a credit file (regardless of whether they are likely to)?

    – Where a default notice has been incorrectly logged against somebody, how is this removed – by the creditor of the credit file company?

    Thank you.

    Reply
    1. CreditExpert Neil

      Hi Ben, thanks for your question.

      Lenders are obliged to record accurate information on a credit report, so if a default has been correctly recorded the lender would be unlikely to remove it. They may accept a partial payment and then mark the account as satisfied with a partial payment flag. Any lenders searching the report would know that the account has been cleared.
      The lender themselves can make amendments to the information that they provide credit reference agencies, or they can instruct the agency themselves to make amendments. If you believe a default has been incorrectly recorded contact us and we can raise a dispute with the lender on your behalf.
      Kind regards Neil

      Reply
  24. Michael mclaughlin

    Hello me and my fiancé have just got an dip with Halifax but I have two defaults on my account from 2013 both been payed off she has a great credit score and mine says fair we both have good jobs by us getting the dip is there a good chance of us getting mortgage thanks

    Reply
    1. CreditExpert Neil

      Hi Michael, thanks for your question. When a company give a decision in principal they usually will not have seen your full report, and may have only conducted a “soft” search. As the defaults are now a few years old then they should have less of an impact on your report, however it is always up to the lender as to what decision they make, they may still offer a mortgage but at a higher rate. You can add a notice of correction to your report to explain how the defaults occurred, which a lender can then take into account when they do a full search. Find out more about this here.
      Kind regards Neil

      Reply
  25. Sophie

    Hi there,

    I had an overdraft which defaulted when I was a student March 2013 and was settled in full A month later. I didn’t recieve the default notice as I notified them by post a temp change of address at university whIch wasn’t done on the account so I wasn’t receiving any post and wasn’t made aware at that point otherwise I would’ve acted sooner, would this be an error I could dispute with Santander?

    I’m in the process of saving for a mortgage, I opened a help to buy ISA earlier in the year and hoping to start looking at the end of 2017.
    My partner has a good credit rating and since start of the year and I have accepted for a credit card and paying it in full each month ever since and never been late with a payment so my credit score is improving as the months go by and I ensure I monitor it closely.

    I work for the Lloyds banking group so would be entitled to a good rate staff mortgage, I’m concerned whether I would be accepted for a mortgage until the default has cleared after the 6 years are up or whether I could apply after 4/5 years of it being settled if I continue managing my credit card account well.

    Many thanks

    Reply
    1. CreditExpert Joe

      Hi Sophie,
      as a credit reference agency we don’t make the decision to accept or decline an application – it’s the lender that makes this decision.

      Each lender so in this case Lloyds will have their own lending criteria on if to accept your application or not.

      We do feel Defaults can effect you for the 6 years while they remain on the report. They would have less impact over time on your Experian Credit Score but as previously mentioned it would depend on the lenders own criteria for how they would view defaults.

      Joe

      Reply
  26. simon

    Hello James,
    i have a default registered from halifax credit card. the account was defaulted when the debt was passed to debt company even though i was making regular payments. i am looking to apply for a mortgage with my wife. we have very good jobs and very high deposit.
    please advise on the following.

    if i make a partial payment on the 4k outstanding debt to settle, will this start a new partial payment flag for another six years on my credit files after expiration of the initial 6 years from 2012 please.
    if i make a partial payment to settle will both the default note and any partial payment note disappear from my credit files after the six years.
    if i make partial payment, can i ask the debt company not to report the default.

    thanks greatly

    simon

    Reply
    1. CreditExpert Stuart

      Hi Simon,

      I understand that you are looking to apply for a mortgage but are concerned about a default affecting your chances to obtain credit.

      In terms of satisfying the terms of the default, this would update the account on the report to be shown as being paid, however, this wouldn’t change the date that the account would be due to drop off your Experian Credit Report.

      For example, if you satisfied the terms of a default dated on 1/1/2012 then this would be automatically removed on 2/1/2012 from your report.

      In terms of the account appearing on your report, I am not able to say if the debt management company would take this action as the information belongs to them, however, you may want to discuss this with your lender.

      As you’re looking to apply for a mortgage, you might want to check out our great guide on things to look out for during the mortgage application process available here.

      Kind regards,
      Stuart

      Reply
  27. Tim

    Hi,
    I had several defaults from 2009 totalling £30k which have all dropped off my credit file now but a lot of the debt is still outstanding (nearly £20k). I’m paying this off monthly with a debt management company but wondering if this debt will cause me to be declined for a mortgage application?

    My credit file is excellent now but I’m concerned that lenders will see my debt as a hindrance to me being able to afford a mortgage which I cab could quite easily do. My wife’s file is excellent too

    thanks,

    Reply
    1. CreditExpert Neil

      Hi Tim, the defaults from 2009 would no longer show on your credit report, however the lender may ask you about any other debts or financial commitments that you have as part of the application. If they do they would then take this into account as part of their decision making. Having existing financial commitments should not prevent you from getting a mortgage, but the final decision is always up to the lender. You may find our guide to preparing for a mortgage application useful here, and wish you all the best with you application when you are ready to make it! Kind regards Neil.

      Reply
  28. Caroline

    Hi,

    My 63 year old brother lost his job three years ago due to a breakdown. He defaulted on credit cards and loans and couldn’t afford his mortgage. As he is going to leave me his house in his will (he lives alone with no dependants), I decided I would pay the rest of the mortgage for him so he didn’t lose his home. This I have been doing for the last three years with two and a half years more to go. I don’t have my name on the mortgage or deeds , just pay him into his bank account every month. He now wants me to have my name added to the mortgage so if anything should happen to him the house would just been signed over to me. I am happy for this to happen but I have an excellent credit score and wonder if his defaults will impact on me wanting credit in the future. Any advice would be appreciated. Thank you

    Reply
    1. CreditExpert Neil

      Hi Caroline, thanks for your question. If you were to take a joint mortgage with your brother then you would be financially linked and as a result lenders would be likely to take your brothers credit report into account when considering you for credit.
      I’m not able to provide advice on whether it is possible to have your name put on the deeds but not on the mortgage, you may find it useful to speak to your local Citizens Advice Bureau who should be able to tell you what your options are in regard to this. Kind regards Neil

      Reply
  29. Franchesca

    Hi , my husband and I want to apply for a mortgage but he has a poor credit rating and CCjs fro before and he’s also self employed but has a regular good wage every month as he sub contracts . mines not too bad and I own a house out right , what is our chance of getting accepted for a mortgage at the current state ?

    Reply
    1. CreditExpert Neil

      Hi Franchesca, it is always up to the lenders themselves as to what they are prepared to accept in a credit history when considering an application. You may find that lenders will only be prepared to offer a mortgage at a higher rate, or you may need a larger deposit but this would be the lenders decision.
      You may find our guide to making a mortgage application useful here. Kind regards Neil.

      Reply
  30. Sarah Gilmour

    Hi,

    My partner and I are looking at applying for a mortgage soon.

    Last year I looked at my credit score and found out I had some debts-these have now all been paid. My credit score now shows as having 2 negatives (4 accounts in default amount to about £800 and the fact that I only have a credit card with a limit of £500.)

    So to build my credit I paid off my debts and applied for a Capital One classic credit card which is advertised for bad credit. I was refused a credit card from my bank.

    Since I have taken these steps my credit score hasn’t really changed. It is 307 out of 700.

    My partner has an excellent credit score and has never defaulted.

    I feel like I’m stuck and there’s no way out? The defaults won’t go off my file for another 3 years (at least the last one won’t.) They are all satisfied so do you think we still may be accepted for a mortgage?

    I have heard about being about to write good will letters to the debt collecting agency? These missed payments where made at a time when I was naive about my money and my family was going through a hard time financially.

    We are both 25.

    Any advice will be very much appreciated.

    Thank you

    Reply
    1. CreditExpert Neil

      Hi Sarah, having defaulted accounts on your credit report doesn’t necessarily mean that you will not be able to get a mortgage, but lenders may only be prepared to offer on at higher interest rates. It is however always up to the lender as to what they are prepared to accept.
      Having well run accounts will certainly help your report in the future, and although the defaults will have a negative impact until they come off lenders will be aware that they are from a number of years ago.
      Lenders are obliged to record accurate information so it would be unlikely that they would remove the defaults unless they are incorrect. You can however add a note to your credit report that lenders will then read when checking your report, so you can explain any circumstances around the defaults. You can find out more about this here . You may also find our guide to preparing for a mortgage application useful here. Kind regards Neil

      Reply
  31. Gabriele

    Hi,

    My partner and I are trying to get a mortgage but I have a default on my credit account from July 2015, they gave me a settlement deal and I paid that in June 2016 and now it shows up as partly satisfied default. my partners credit score is near perfect. Is there a way I could satisfy the default would this look better on my credit score? I was 18 and stupid and got a pay day lone and defaulted. is there anyway I can make it look more attractive to lenders?

    also the pay day loan company didn’t seem to give me prompts to pay I didn’t receive any emails or letters and forgot about the loan. and now it has come back to bite me.

    Thank you,

    Gabi

    Reply
    1. CreditExpert Neil

      Hi Gabriele, while most lenders are likely to prefer to see a fully paid default rather than a partial settlement on a default the fact that the default occurred at all would still cause them concern. Your Experian Credit Score would not change significantly if at all from changing from a partial settlement.
      A lender will usually provide details of what payments are required and what will happen if they are missed in the original agreement.
      You would be able to add a notice of correction to your credit report to explain who the default occurred, lenders would then be able to read this and take it into account when considering you for credit.
      Kind regards Neil.

      Reply
  32. Rhiannon Curry

    Hi,

    Myself and my partner were given a mortgage decision in November by Halifax. I have poor credit history from 2010 and my partner has good credit history always.
    I got a credit card to improve my credit just before we decided to get a mortgage and received this decision so they would have seen that however my credit score has now gone down due to utilisation of the credit card, so its had the reverse affect! We are due to complete in 2 weeks and i am now very worried that it will get pulled. I get paid next Friday so will try and pay as much as i can but i doubt it will show on the credit report in time?

    Any advice would be great!

    Thanks

    Reply
    1. CreditExpert Neil

      Hi Rhiannon, any changes on your report can lead to a change in your Experian Credit Score. Lenders won’t see this score though as they will have their own scoring systems. They may take any balances on you cards into account as part of their affordability calculations, but it would be up to the lender themselves as to what they are prepared to accepts.
      Most lenders update accounts on a monthly basis so any payments made in the next couple of weeks would be unlikely to show on your report straight away. If you are concerned it may be worth checking with your mortgage provider to see if they are needing to do any further credit checks at this stage. Kind regards Neil.

      Reply
    1. CreditExpert Neil

      Hi Paul, it would be up to the lender as to whether they accept an application with a default from 2016. It may be that they will only be prepared to offer at a higher rate.
      You may find our guide to preparing for a mortgage application useful here. Kind regards Neil.

      Reply
  33. Matthew

    Hi,

    Not sure if this thread will still be running/get answered but giving it a shot.

    I have one outstanding default on my credit file for 4.5 years ago. My girlfriend and I are looking at getting a mortgage and I’m aware I need to settle the default before we proceed any further. My question is, given the collection agency have offered a partial settlement, would it be a better idea to fully settle the default rather than partially settled it?

    Would the fact that I have only recently settled on an old default have more of a detrimental effect?

    Thanks,

    Matthew

    Reply
    1. CreditExpert Neil

      Hi Matthew, yes we are still answering your questions on this!
      It would be up to the individual lender as to whether they would accept an application with a partially settled default or not. A partially settled default would not be treated differently to a fully settled default in regards to your Experian Credit Score, and the fact that it was recently settled would not affect this either.
      Kind regards Neil

      Reply

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