how long for defaults to come off in scotland

[surycts7]

Thanks to all who posted comments on my other question .Kind of went of on a tangent but its good to hear debates on the ins and outs of credit .
Does anyone know what the duration for defaults are in scotland .
I have read somewhere that it is 5 years as opposed to 6 in the rest of the UK .
My default was via egg who i beleived was owned by the prudential .I live in scotland .
second question while on here .
are you more likly tol get a mortgage if you have a credit card but have paid the balance off are have a small balance that is serviced monthly .
again thanks for any info .

[swanfan]

Re: how long for defaults to come off in scotland

Default is 6 years in England & Scotland.

Staute barred is 5 years in Scotland, 6 years in England.

[SXGuy]

Re: how long for defaults to come off in scotland

regards to mortgage, it depends.

Mortgages like to take into account your income against your debts, so if you are paying your credit card back and the amount you pay back results in them believing you wouldnt afford a mortgage, it wouldnt help.

However, it prob could be seen as a good thing if it was an indication of how you handle your debts, i,e never missed a payment, always pay on time etc.

Personally though the best option by far is to have no debt, and show a reasonable income.

Having said that, i managed to get a mortgage and i have nearly £300 a month car finance on my credit file, didnt affect me at all!

[Never-In-Doubt]

Re: how long for defaults to come off in scotland

Hi,

Regards defaults see this post here ---> http://forums.all-about-debt.co.uk/showpost.php?p=176936&postcount=27

The above link also contains the guidance for issuing defaults.

And then read the few posts after it, you'll then get a good idea of the impact etc of having one....

Also this is handy, ie the post after the one above ---> http://forums.all-about-debt.co.uk/showpost.php?p=176948&postcount=28

[mgfboy]

Re: how long for defaults to come off in scotland

On the mortgage front it's all about affordability (assuming you have a clean credit record). In the old days in worked on a multiple of income 3x,4x etc but now they look at the whole income , expendature balance.

Most lenders have website that allow you to see roughly what they will lend. They dont care how much debt you have as long as you have enough excess income to live on and pay them back. I've done mortgages where people owe 6 figures sums in short term debt but still can get a six figure mortgage. It all boils down to how much excess income you have.

[mgfboy]

Re: how long for defaults to come off in scotland

The size of your deposit also matters A LOT, especially in this day and age. Even after the credit crunch, I know people who have had mortgage offers for mortgages they just couldn't afford (without taking in lodgers), because they were looking for 50%-60% LTV. If you are looking for 90% then they'll look much more closely at everything. Lenders don't really care if you lose your home - as long as they don't lose any money of course!

Yep you are right the larger deposit do help a lot, but thats because some lenders even now fast track offers which means in effect if they credit score well they then don't check the income figure ( they do reserve the right to) and some people have been known to lie or include lodger income etc!!

Trust me now it a hell of alot harder to get a mortgage than it used to be, I've seen cases where people have not been accepted due to having a couple of 1's on their credit cards. The wild west of the mortgage world really no longer exists.

Saying that though I did get sent though some info on a non status buy to let deal this week ( it was quite expensive though!!!) and I sure there will be other dodgy deals out there , but I would rather not get involved with them.