Bt default

[PlanB]

Re: Bt default

Where did I say it would be an instant decline?

You didn't

Negative impact could be anything from a decline down to very slightly less favourable terms.

That's what I said.

But having too much credit which has been handled in an impeccable manner can also have a negative impact if the lender feels you can't manage any more borrowing.

As you said the decisions are made on a combination of factors.

[Riz]

Re: Bt default

Where did I say it would be an instant decline?

Negative impact could be anything from a decline down to very slightly less favourable terms. Depending on all the other factors.

[PlanB]

Re: Bt default

Even Experian grudgingly admit they will have a negaive impact for "some lenders".

For "some", read most.

And as for mortgage applications, as said that is a guarantee.

I can't agree with your pessimism.

In this case the OP will be making a joint application with his partner who has a squeaky clean credit rating which may solve the problem albeit limit the amount the mortgage company will lend.

I would say it's not a guaranteed decline with some lenders particular if the application is processed through a packager which makes the lending decisions on behalf of the lender and they are more 'open-minded'. That's why lenders use packagers because it enables them to distance themselves from any future accusation of irresponsible lending.

[Riz]

Re: Bt default

Even Experian grudgingly admit they will have a negaive impact for "some lenders".

http://www.experian.co.uk/consumer/q...kjames246.html

For "some", read most.

And as for mortgage applications, as said that is a guarantee.

[SaltnVinegar]

Re: Bt default

The PDL's were paid off over 12 months ago, some were rolling from month to month so it looks like there were more than there were

Unfortunately 'rolling over' or 'drawing down' on a month to month basis is behaviour that mortgage lenders especially dislike to see, rather than a 'one off'.

I'd think if you leave it 12 months at least you may have some luck with lenders such as GE or Aldermore, but one of our IFA's would have names of more.

[Never-In-Doubt]

Re: Bt default

.....affordability is the driving force right now.

Only when aligned with third party credit reference data. Affordability means an in-depth look into your finances and if anyone has a PDL it's bad news. Those less forgiving (HBOS) will assess how many; how long used & frequency of dependency.

Its easy to to get a picture of affordability with a credit report. If it shows you maxed your cards and got PDL's for 3 months whilst job hunting and then everything was paid back etc then that wouldn't be an issue. It's classed as responsible borrowing; regardless that you used a PDL. planB prefers Waitrose to my Tesco. So what? My point is you may want a PDL because at that time it was best for you regardless that it may have cost you more month by month. That's your prerogative.

If the reverse occurred and you still show maxed out cards and/or other derogatory data then I'd forget applying for a mortgage till the last PDL / derogatory entry is 3+ years old.

[PlanB]

Re: Bt default

I'm afraid to say that Niddy is right

But of course I am

And modest too apparently

[Never-In-Doubt]

Re: Bt default

I'm afraid to say that Niddy is right

But of course I am

[PlanB]

Re: Bt default

The PDL's were paid off over 12 months ago, some were rolling from month to month so it looks like there were more than there were

On that basis you would struggle to get a mortgage in the current climate.

However (since I'm ever the optimist ) if you're looking at a joint mortgage application then your partner's financial situation may save the day because the lender will look at the overall situation of both of you, and affordability is the driving force right now.

[l8onjones]

Re: Bt default

The PDL's were paid off over 12 months ago, some were rolling from month to month so it looks like there were more than there were

[CleverClogs (RIP)]

Re: Bt default

Because that would be dishonest

How would it be dishonest to say that Ms Clever Clogs has never resided at any address occupied by Mr Clever Clogs?

[SA Gold]

Re: Bt default

So it's looking increasingly likely that this is a case of mistaken identity.

A debt collection agency wrote to me in my old place on behalf of BT saying i owed them several hundred quid. I wrote back saying i hadn't had an account with BT for several years and that there was no BT services in the property. I never heard anything more about it. I had an equifax report serveral months after this (just prior to going UE ) and there was no entry from BT on there.

I came to the conclusion that BT didn't add entries to the credit files, or if they did they must have removed any entries (should they have added one to mine in the first place)

[PlanB]

Re: Bt default

PlanB - a PDL WILL negatively impact a mortgage.

I know I know, I'm ever the optimist aren't I

The OP should apply for a mortgage with the Halifax which has openly stated that it does not have a negative view of PDLs which have been well managed on a short-term basis, and not used as a monthly drawdown facility which demonstrates the inability to budget.

Of course there's no way of telling whether that is really true since underwriting decisions are strictly private and brokers are never told the real reason for a client's decline.

http://www.thisismoney.co.uk/money/c...-mortgage.html

[SaltnVinegar]

Re: Bt default

How long ago were all these PDLs paid off?

If they were never defaulted and were taken out/settled over three years ago it may not have a negative impact on your mortgage application especially if you can come up with a good reason for the temporary blip (historical job loss, divorce etc).

How many are there?

PlanB - a PDL WILL negatively impact a mortgage. That's a guarantee.

You need a legible excuse, I provided one on the last page which works

its a simple case of acting daft

I'm afraid to say that Niddy is right - almost all the mainstream lenders scoring systems will see taking a payday loan as a sign of financial distress and will automatically decline on this basis. Even with a cock and bull story above, the computer will say no and there will be nothing the sales drone will be able to do about it.

The OP may get a more sympathetic hearing from an independant mortgage advisor, but this would be dependant on other CRA entries. Ultimately if you wanted a financial product to show you could handle credit you'd take out a 0% APR credit card and keep a small balance on it, not take a 6,000% short term loan.

My thoughts are the OP would be better forgetting a mortgage for the next 3 years, and use the time to save up a substantial deposit, not take out any more loans/credit cards etc, and then at that point go to an independant mortgage advisor who would have a wider panel of lenders to chose from.

[Never-In-Doubt]

Re: Bt default

PlanB - a PDL WILL negatively impact a mortgage. That's a guarantee.

You need a legible excuse, I provided one on the last page which works

its a simple case of acting daft