SB debt and applying for a mortgage

[tastyjane]

We received our mortgage statement today, we currently have an interest only mortgage and no vehicle to repay it. There are 8 years left before we need to pay it back and hopefully by then there will be an improvement in the housing market and we will have some equity again. We bought it with a £50K deposit in 2006 which has disappeared with the property crash so only have about £6k equity in it at the moment.

Most of my £40K debt should be Statute Barred in another 18 months at the most (some is earlier) I have settled F&F with Lowells now and I have one CCJ that I am paying back at £10 per month which is for £3500 ish.

I don't want credit as in credit cards again but where will I stand in 8 years to get a mortgage? If/When my debt becomes SB will it continue to effect my credit rating? Also if we get a little more financially secure is it possible to approach the company that has the CCJ and offer a F&F to them? Would that then remove this from my credit record too?

I do like to have a plan I need to get myself in a position that we can remortgage onto a repayment mortgage in 8 years time.

Any advice and help much appreciated.

Jane x

[Never-In-Doubt]

Re: SB debt and applying for a mortgage

You will struggle for a mortgage until 6 years after the last adverse entry, so in essence it works by your credit file. If you're paying a CCJ then chances are you'll have that showing for a while, however the basis on what to look for is all entries being removed after 6 years from date of last entry/update status.

Example: Credit Card defaulted in Jan 2005 would be clear from your file in Feb 2011.

Example 2: Credit card defaulted Jan 2005 but they got a CCJ in Dec 2010 would mean the CCJ will remain live at Trust Online for 6 years from the date of action so that would vanish Dec 2016 although your credit file entry (the default) would vanish around Feb 2011.

Example 3: Bank account showing status 6 from jan 2005 to nov 2010 then a default from dec 2010. Your file would default in 2010 and thus remain until Dec 2016/Jan 2017.

See how it works?

[tastyjane]

Re: SB debt and applying for a mortgage

So in theory I have to remortgage in June 2021.

My 4 outstanding credit cards become SB in 2014 & 2015 (all the defaults will have fallen off on or around that date too) so my credit record should be clear if these early 2015.

I am taking it that because I have F&F settled the Lowells situation that will fall off in 2019?

Once you have a CCJ can you make an offer to F&F? If I did that before the end of 2014 it would no longer show in 2021, have I got that right?

I know my credit record shows the amount of credit outstanding. Does this revert back to £0 once the debts are statute barred? If I've got all the above right then it looks like I can set a plan to be OK by 2021 thank god I found here!

Thanks

Jane x

[Never-In-Doubt]

Re: SB debt and applying for a mortgage

I am taking it that because I have F&F settled the Lowells situation that will fall off in 2019?

No it will drop off 6 years after the default date. The fact you paid it off means nothing, it was still defaulted.

Once you have a CCJ can you make an offer to F&F? If I did that before the end of 2014 it would no longer show in 2021, have I got that right?

You're getting confused, the CCJ will go (from your credit file) after 6 years from the date it was issued whether you pay or not..... Trust Online will also remove it after 6 years but it'd still be there, in the background, until it was settled.

I know my credit record shows the amount of credit outstanding. Does this revert back to £0 once the debts are statute barred?

Sorry? Forget your credit file, seriously!! Once they go SB they stay the same, until such time 6 years from date of default when they will fall off.

All debts remain for 6 years from default date - so any defaulted accounts, no matter what happens, the entry will drop off the CRA after 6 years - whether you pay, get CCJ or do nothing.

If I've got all the above right then it looks like I can set a plan to be OK by 2021 thank god I found here!

You got the above slightly confuddled

When was the CCJ granted? Are all your debts defaulted or are any live? Its live ones you need to worry about, ie live old debts.

[tastyjane]

Re: SB debt and applying for a mortgage

Doesn't take much to confuse me Niddy; all the debts are defaulted, all defaults on the accounts I am not paying hit 6 years at the latest 1/9/2015. Apart from sending for CCA on the two egg accounts I have not done anything with any of them since 2008.

The CCJ was issued 30th November 2011 and the account defaulted in 04/09, I am paying the £10 per month as per the order. So if I haven't paid all the monies back it will still go off my credit record in 2017?

Lowell's debt default date was Nov 2008.

Jane x

[Never-In-Doubt]

Re: SB debt and applying for a mortgage

6 years from date of default is when the entry will vanish - so yea, 2015/2016 is the key dates.

CCJ will be hidden after Nov 2017.

[tastyjane]

Re: SB debt and applying for a mortgage

Wow, this is great news - once again Niddy has removed a horrid niggle from the back of my mind you are a legend

The plan is to "manage" the rest of my debt with your help here, and then have 4 years to gently rebuild my credit rating..... I do love having a plan

The other issue we have is that my husband has still got a mint card - they have been awful and when we approached them about our financial hardship they just upped the interest rate. He pays the minimum payment each month and isn't clearing the capital at all - it was taken out pre-2007 so I have told him to send a CCA request. If he stops paying them and they default him he needs this to happen before 2014 so it drops off before our 2021 deadline? Its only for around £4K and we have discussed the best thing that could happen would be for it either to be UE or that he gets it bounced around for a bit and then make them a reduced offer to settle it. Now I understand about defaults etc he needs to get cracking....

Thanks god like one

Jane x

[Never-In-Doubt]

Re: SB debt and applying for a mortgage

This would have been better in the default section, not mortage section ---> Defaults - allaboutFORUMS

It'd then have allowed you to find these answers a lot easier