How long do debts stay on credit file ?

[Spent2much]

Our debts were defaulted in 2007 onward we started UE in July 2012 .

We haven't checked our credit files as we don't want to wake up the creditors, but with things getting harder and harder such as wtc and now council tax help being based on minimum wage for self employed, we are looking into other ways to get by.

We were wondering if we could sell this house put a 25000 deposit down on another one say of 60000 and then get a mortgage which would halve our outgoings , we have not missed a mortgage payment for 14 months so should be good standing on that ?

Does anyone think this would be possible ?

[cymruambyth]

Re: How long do debts stay on credit file ?

Hi s2m, defaults stay on your credit file for 6 years and then drop off your credit file. You say that you have not missed a mortgage payment for 14 months, before then what was your payment history? Even if you are going to decrease your mortgage, problems within the last 2 years may be too soon for your credit history.

[Spent2much]

Re: How long do debts stay on credit file ?

We had an arrangement to pay back the arrears .

[JLC]

Re: How long do debts stay on credit file ?

Have you thought about remortgaging part interest only and part repayment? Or moving to interest only for a couple of years?

[Spent2much]

Re: How long do debts stay on credit file ?

Have you thought about remortgaging part interest only and part repayment? Or moving to interest only for a couple of years?

Already interest only , its a big house and too big now for us as our son's have left home, we need to lower our outgoings to be able to manage i don't work due to severe anxiety and agoraphobia , so the best option is downsizing the house and mortgage .

[jadex]

Re: How long do debts stay on credit file ?

there are different rules in place now to assess one's affordability to get mortgage (sometimes it is so stupid that people cannot switch to mortgage with lower payments than they are paying now.... 'cos they would have been denied their old mortgage as well under the new rules...)

if you can, take a lodger in for some time (I know, not ideal if you cannot stand strangers in your house), it also has some tax advantages

you might most probably not get those low rates you base your assessments on, so you downsize, incur all costs associated with moving and it might be for peanuts

[Spent2much]

Re: How long do debts stay on credit file ?

there are different rules in place now to assess one's affordability to get mortgage (sometimes it is so stupid that people cannot switch to mortgage with lower payments than they are paying now.... 'cos they would have been denied their old mortgage as well under the new rules...)

if you can, take a lodger in for some time (I know, not ideal if you cannot stand strangers in your house), it also has some tax advantages

you might most probably not get those low rates you base your assessments on, so you downsize, incur all costs associated with moving and it might be for peanuts

I know it is difficult, we might be getting a big payment from my dad soon and we are thinking of selling this and using the money to put towards a smaller house , it depends how much my dad releases .

He helps us out a lot and we are fortunate that he does and we wouldn't be here in this house if he didn't help . He says he helps because he appreciates what we do for him and my mum but we would do it anyway even if he didn't help us out . So we're waiting to see what happens here i am just looking to improve our outgoings and the house is far too big four bedrooms and two bathrooms and only the two of us .

A lodger wouldn't like living here i have panic attacks and sometimes my husband has to take me to the hospital when i have problems with my back and it really would freak someone out who didn't understand .