Mortgage with paid defaults

[lifelaughloathe]

Hi everyone,

I'm not sure if I'm posting in the right thread so apologises if not but I'm a bit clueless so was wondering if someone could advise.

5 years ago I ended up in a really horrible place, I managed to get myself into debt thinking I could pay it off which at the time I could but it's a slippery slope and I ended up in £45k in debt (loans, credit cards,catalogues) basically I was young and very stupid but was managing to pay until my dad died, my husband left and my mental health prevented me from working so I ended up defaulting on all of it, the only thing I managed to keep up was my mortgage that has only had one late repayment on it due to moving the dates but that's always been up to date.

I'm in a much better position now and I've managed to clear 15k on my defaults which is leaving a 30k loan on there but it's a five year old default and I am on a payment plan for it (I'm in a better position but not enough to pay 30k in one go sadly) and I was wondering if I would have a chance at a mortgage with a historic default and the rest of them being paid? I'm not looking right now with the COL and inflation but I'm just wondering in general if anyone could explained how it works.

Thank you

I'm no expert but if the default is over 5 years old it should disappear off your credit file ( I think!). However your 30k debt will also be against you

That's the one that's almost at 6 years so will that just disappear?

I think I'm going to wait a few years anyway but I was just wondering what happens, thank you for replying.

Defaults drop off your account after 6 years, once they're all gone you can look to rebuild your credit history showing you are responsible being lent money and paying it back.

There are lenders who do offer mortgages with current defaults but you will not get a favourable interest rate by any means.

Which is fair - hopefully paying my mortgage goes in my favour and I'm thinking once I can of getting a credit card and maybe putting my shopping on it and then paying it off every month completely which will hopefully boost my credit score plus it'll give me time to save for a deposit so works out better

Yes, I have one I used a specialist broker

If you already have a mortgage and your fix rate is expiring, ask for a product transfer. They shouldn't do a credit search. That buys you more time.

The default station is slightly more complicated. If you had a default and the account has been closed then it should drop off 6 years after the first default. If the account is still open, then it could show.

Yes, what is the question here? Do you have a mortgage and the fixed rate is expiring? My mortgage firm didn't do any new credit checks to move me to a new fix.

Even though it drops off after 6 years though, they can see if you’re on a payment plan from your bank statements, and might query it. They did with me, so whilst my default no longer showed on credit file, i was questioned about the debt when they saw the monthly payments on the debt plan on my statement.