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I'm 4 years and 6 months into a DMP that effectively continues till 2032 at current payments. Everyone is happy, and the boats not been rocked. CCCS perform this function for me so its all acceptable and up to date, and every year I pay a bit more so its clear I am a promising consumer. Interest and charges have been zero ever since, and I have not skipped a beat.
I have 6 creditors totalling £22K. 1 CC, 2 unsecured loans, 3 over drafts. Both loans have been passed on to finance groups, 2 OD's to a single DCA, the CC is still with the creditor and 1 OD still with the bank. Besides the 2 loans, all are Natwest products derived from Current Accounts.
All 6 have placed defaults on my credit file from early 2008, the last of which will be mature on 19/07/2014.
The challenge is thus:
What I am planning to try to manage is to purchase my council flat at the 50% discount I will get, when I am eligible post Oct 2013. My plan is to have "part settled" my debts by then, with all accounts finalised and terminated, then saving for a 10% deposit, and then applying for a mortgage on the rest. All this in time for my last 6 year anniversary. My gamble is that given I will only be applying for a mortgage at 40% of the home value, I will be seen as a welcome risk to someone. Because, should I indeed default again, the creditor will be getting a fat profit on my home should I lose it to them with this high loan to value ratio.
The settlement I would offer on my debts could be no more than 25%.
Another option would be to attempt going UE on the 2 loans - both pre April 2007 - but settling satisfactorily the others. One is now owned by Santander and the other finally by Cabot Financial (via J & J, then Blair Oliver Scott). They are from Cahoot and Sainsbury's respectively.
So my questions are: given that after 6 years from default date this entry is removed from my CR (is this true), is there some other way that these bad logs will be retrievable by a mortgage lender doing a credit search, and if untraceable, does this in some way still reflect on my credit score. Would it just state "part settled" or also "default", and is "part settled" as serious an issue as "default"? In other words - what is the full implication and standard procedure for Credit Agencies to report, update, delete this info, or where can I further research this?
And, should I go UE on the 2 loans, will this somehow reflect on my CR after the 6 year default anniversaries have been reached post 19/07/2014? And again, how will this be logged and what are its implications on a post 6 year search?
To recap:
a) do the default entries at their 6 year anniversary really get removed from the CR, and are they then untraceable? are they declarable on further credit applications?
b) how does the 6 year rule apply to UE's?
c) could these UE's be enforced later and how would this risk my subsequent house purchase?
d) going UE on a finance group as opposed to a DCA - is this advisable/possible/feasible/suicidal?
e) whats your opinion on the possibility of me obtaining mortgage credit on said discounted flat as imagined by someone who's not as clever as he thinks/hopes?
Many thanks,
R
I have 6 creditors totalling £22K. 1 CC, 2 unsecured loans, 3 over drafts. Both loans have been passed on to finance groups, 2 OD's to a single DCA, the CC is still with the creditor and 1 OD still with the bank. Besides the 2 loans, all are Natwest products derived from Current Accounts.
All 6 have placed defaults on my credit file from early 2008, the last of which will be mature on 19/07/2014.
The challenge is thus:
What I am planning to try to manage is to purchase my council flat at the 50% discount I will get, when I am eligible post Oct 2013. My plan is to have "part settled" my debts by then, with all accounts finalised and terminated, then saving for a 10% deposit, and then applying for a mortgage on the rest. All this in time for my last 6 year anniversary. My gamble is that given I will only be applying for a mortgage at 40% of the home value, I will be seen as a welcome risk to someone. Because, should I indeed default again, the creditor will be getting a fat profit on my home should I lose it to them with this high loan to value ratio.
The settlement I would offer on my debts could be no more than 25%.
Another option would be to attempt going UE on the 2 loans - both pre April 2007 - but settling satisfactorily the others. One is now owned by Santander and the other finally by Cabot Financial (via J & J, then Blair Oliver Scott). They are from Cahoot and Sainsbury's respectively.
So my questions are: given that after 6 years from default date this entry is removed from my CR (is this true), is there some other way that these bad logs will be retrievable by a mortgage lender doing a credit search, and if untraceable, does this in some way still reflect on my credit score. Would it just state "part settled" or also "default", and is "part settled" as serious an issue as "default"? In other words - what is the full implication and standard procedure for Credit Agencies to report, update, delete this info, or where can I further research this?
And, should I go UE on the 2 loans, will this somehow reflect on my CR after the 6 year default anniversaries have been reached post 19/07/2014? And again, how will this be logged and what are its implications on a post 6 year search?
To recap:
a) do the default entries at their 6 year anniversary really get removed from the CR, and are they then untraceable? are they declarable on further credit applications?
b) how does the 6 year rule apply to UE's?
c) could these UE's be enforced later and how would this risk my subsequent house purchase?
d) going UE on a finance group as opposed to a DCA - is this advisable/possible/feasible/suicidal?
e) whats your opinion on the possibility of me obtaining mortgage credit on said discounted flat as imagined by someone who's not as clever as he thinks/hopes?
Many thanks,
R
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