A reader asked:
I know a debt drops off my credit file 6 years after it was settled or defaulted. I just want to ask when I apply for a mortgage, can the lender dig up unpaid debts if they are no longer showing on my credit report?
This is a common question. The answer is Yes, sometimes because a lender can see other information that may show the debts.
Let’s look at what the lender can see, so you can tell if you need to be worried about this.
But first, make sure that you have checked your credit records with Experian, Equifax and TransUnion – the three Credit Reference Agencies (CRAs). Not all creditors report to the same CRA, so if you only look at one report, you may miss something important on a different report. See How to check your credit records for free for how to do this.
Mortgage lenders also look at your bank statements
Credit records are just one source of information for a lender – they are not the only thing that matters.
Most mortgage lenders want to see the last three months of bank statements, some ask for six months.
These statements show if you are making payments to debts that are no longer on your credit record. That could be payments to the original creditor, to a debt collector or to a debt management firm.
A lender can’t see payments that are no longer being made, either because the debt is repaid or because you just stopped paying…
But it’s not safe to stop paying a debt just because it has dropped off your credit record. See Do I have to keep paying this old debt? for details.
Unless a debt is very old and statute barred or it’s unenforceable because the creditor doesn’t have the right documentation, you should be aiming to pay off problem debts where there have been defaults before a mortgage application. This could be with a full and final settlement – this won’t cause the debt to reappear on your credit record.
Lenders have their own internal records
Lenders can also look at their own internal records.
A lender may also be able to see records from other parts of the same banking group, so an application to Halifax could perhaps be affected if you had had an old problem debt with Lloyds.
There is no legal maximum time on how long a lender can keep these for – they don’t have to delete them 6 years after a debt has been settled or written off. Banks can keep data for a very long time – PPI claims have been settled for debts that were repaid more than 15 years ago.
So a lender may be able to tell if you defaulted on a debt, you went bankrupt or had an IVA, or you settled a debt with a partial settlement.
Some lenders may not mind if your debt problems were a long time ago, but you can’t assume they don’t know about them!
Who to apply to?
I always suggest that people should go to a mortgage broker.
Even if you have never had a debt problem in your life and have a great credit record, a good broker can still find mortgage deals that you may not be able to see and can smooth the way through what can be a stressful process.
This is even more important when you have had previous debt problems. Old problems may not be a problem at all for many lenders, but why take the risk? If you just apply to bank X, you may find out the hard way that bank X can see that old problem, cares about it and is going to turn you down because of it.
So tell a good broker about all your previous debt problems and you can get good advice on which lender to apply to. See Should you get a mortgage adviser? for how to choose a mortgage broker.
Improve your credit score for a mortgage
Credit score worries can make your debts worse
FAQs on statute barred debt
vanitha says
hi
only one debt 10 years , I am paying DMP , still show the credit file negative mark, how can I remove this.
I have no job, I am sick, my husband look after me.
please advice me.
thanks
Vanitha
Sara (Debt Camel) says
Can I ask what this problem debt is?
Your DMP, how much do you owe?
Are you buying a house or renting?
Gary says
Hello. I have been suffering with a gambling problem for sometime now. As a result I have recently had a number of defaults.against cards etc which i have used to fund my habit. My partner doesnt know the full extent of the issue and I have left her out of it for now. What i want to know it how this affects my current mortgage. Our mortgage is together but we have no ither joint accounts etc. My current account is my own and my wife has her own too. Our morgage come s out her account too.
Will my defaults affect her score or our future mortgage. We havd stayed with the same mortgage lender for the last 10years. Would appreciate some advice.
Sara (Debt Camel) says
As you have a joint mortgage, you are financially linked on credit records. Your defaults will be harming her credit score. I suggest it is better for you to tell her now rather than let her find out at some point when she is declined for credit and checks her credit record to see why. It may help if you can show you have a practical plan to stop gambling and repay your problems debts.
Your current mortgage won’t be affected but if you have a fixed rate, it is likely to be very hard to remortgage with anyone else. You may still be able to get a new fix from your current lender. This also needs to be explained to your wife.
Paddy says
Hi
I had an IVA that failed a couple of months in because lenders couldn’t agree on changes to repayments when I lost my job, this happened over 10 years ago and is no longer on any credit file. Will this make my chances low of getting a mortgage and do I have to declare it?
Sara (Debt Camel) says
What happened to the debts in it?
Paddy says
Unfortunately they never got settled and are all now off my record as well. Since they dropped off my file I have made a conscious effort to never let that occur again and raised my score up to excellent. In addition I’ve put together a 12% deposit on a property now.
Louise says
Hi Sara
I entered into a DMP in 2013. All but two Barclays accounts were defaulted. The two Barclay cards were marked with AP markers, I was advised to remove them from the DMP as these markers would stay on for 6 years from settlement. I settled the DMP 12 months ago, all defaults have fallen off. The AP markers are 4.5 years old and have had all green ticks since. ( They are only showing on my TU credit report). We are looking to move house and take out a new mortgage, Will these AP markers be a problem? Could they lead to further questions about the DMP and the fact that the remaining debts were only settled 12 months ago? (none are on any of the three report). I have had my current mortage for 13 years and never missed a payment. All other credit lines have been maintained and kept up to date with no issues at all.
Sara (Debt Camel) says
I was advised to remove them from the DMP as these markers would stay on for 6 years from settlement
Who advised this? Why didn’t you just ask Barclaycard to add defaults?
Louise says
Clarke Richards the company has since gone bust and I’m not entirely sure there advise was the best but two credit cards have been paid up every month and on my Experian report they are totally fine and Equifax and green ticks all the way for the full report. TransUnion is showing 42 green ticks to date
Louise says
Do you think I will be able to get a mortgage at an ok rate with these markers? Will they ask for details of the old dmp?
Sara (Debt Camel) says
yeah, it sounds like very poor advice. But you are where you are. I think those payment arrangements look pretty old. My guess is they won’t prompt lenders to enquire about your DMp. But I think you should talk to a broker about your options and tell them the full background.
Louise says
Thank you. The actual dmp was settled 12 months ago. Do you think if they did ask that 12 months is enough time to have lapsed?
Sara (Debt Camel) says
Many lenders use a rule similar to “a default is ok if it was over 3 years ago and was settled more than a year ago”. But this is why you go to a broker, to avoid lenders who might care.
Louise says
Thank you so much. Would this be at a high rate? Or do you think I could get close to the normal rate
Sara (Debt Camel) says
I think you should get a normal rate, perhaps not the best.
Louise says
Thank you so much. This website is so helpful. I really appreciate your response and the speed of them too. Thank you
Louise says
One last question…is a dmp classes as a “voluntary arrangement”. I have seen on some mortgage applications they ask have you entered into a voluntary arrangement in the last 6 years.
Sara (Debt Camel) says
They are asking about an IVA which is a form of insolvency.
Amanda dunn says
Hi, I’m trying to obtain endowment policy statement info from an insurance provider from 23years ago, without any success, any suggestions.
Sara (Debt Camel) says
Sorry, no.
Paddy says
Hey Sara
Apologies for bumping this, so if the debts fell off my credit file and the IVA fell through this will harm my chances of getting a mortgage?
(little bit of back story, this all happened at a time straight after I left university and the 2008 credit crisis happened, I lost my job after building up debt to move to London for it so there was a bit but afterwards I wad working for minimum wage so couldn’t afford to repay lenders)
Sarah says
Hi Sara, I have been separated for five years from my partner who left me with mortgage £630 a month and debts, debts were a credit card @ 3k, a loan 23k at £629 a month, and a very account of £2.200, plus dfs £900. I defaulted on all these 4.5 years ago. I’m seeking to remortgage by myself now, house worth approx 180k, mortgage 114k. I have partially settled loan at £5.300 though still owed £14k. Credit score 733 on experian. Do I have a chance? Also have credit cards at 5k that I have been maintaining payments happily. I am wondering what is the best way to raise credit score, as mortgage due within next two years. And divorce going through, and ex husband to be is happy to hand house over, due to mortgage being 135k and nearly £30k in debts when he left, which only I have paid. Any advice would be appreciated. Also can a credit card still be in the default accounts on credit file, if this sold to link and they state it as a default already. Credit card company have stated that it sold on. I thought this would of moved to settled accounts?
Sarah says
Last few years, my husband has kept him name on mortgage, so product change is what we have completed since break up. I can afford repayments, never any issues paying mortgage or priority debts. I can show evidence that shows I have maintained payments on my own also.
Sara (Debt Camel) says
The loan you partially settled – was this from the same lender as your mortgage?
Have you repaid the 3k defaulted credit card, the Very and DFS accounts?
“mortgage due within next two years. ”
do you mean you have an interest only mortgage that is ending?
or a mortgage fix that s ending?
or you have agreed to get your ex’s name off the mortgage in this timescale but it isn’t the mortgage itself that is ending?
It sounds as though the 3k credit card was sold to Link. In that case the car lender should have your balanced marked as defaulted and satisfied and link should have added an identiacl debt with the same degault date showing an open balance. Is thsi what has happened?
Sarah says
It has just come out of 2y set mortgage fixed repayment, this month it will be on a variable base rate. Very, dfs, and link I am still paying. Very is now £464/ they have offered me option to pay £280 to partially settle debt, this will take another two years to drop off credit files dfs which doesn’t show up on credit file is £146/ partial payment I have been offered is £80. Link I still owe £1465, no news if they would accept partial payment to close account. I need to remortgage this time in my own name. As I understand ex husband wants to move on himself too. I have had one offer off a lender that set for two years, interest rate would be 4.69, then rises to 5.9 above whatever interest rate it is in two years. I’m not sure if I can accept this as, I am wary that in two years that I would be able to lend off a high street lender, and the rate they would set in two years is way above what I may be able to afford. Loan i partially paid two days ago was to nationwaide and the current mortgage I’m with is halifax.
Sara (Debt Camel) says
what is the variable rate you will be paying? You aren’t going to be able to remortgage at a reasonable rate with unsettled defaults on your credit record.
probably only your current mortgage lender would be likely to offer you an OK rate at the moment. And they may refuse because they prefer the security of having your ex on the mortgage as well.
Sarah says
Variable rate will be 3.78%, I can maintain these payments at present. Do I not accept the partial payments on the defaults left? As they may make borrowing worse. Do I ask ex for a year reprieve on keeping to current mortgage and pushing to pay these defaults paid fully? and credit cards paid off also. As this could help me look more financially viable? With the offer of a mortgage I had, they would of been willing to borrow me amount to pay of all debts and credit card bills too. Still dubious if I pay all off, that I will be stuck with this company long after the two year set rate is finished. I’m confused to what I should do. Sorry I know I am very confusing.
Sara (Debt Camel) says
All the defaults drop off in 2 years? At that point it will have made no difference at all if you settle them fully or partially as mortgage lenders won’t be able to see.
Before that point, you may be able to get a mortgage at an OK rate if you have settled all the debts – fully or partially, more than a year before. so if you can settle them all now, then you could probably get a mortgage in a years time. (Caveat – who knows what the house will be worth or what the mortgage market will be then.) Settling the defaulted debts is more important than settling the credit cards, but you don’t want your credit card balances to increase. Can you just stop using the cards and repay a bit more than the minimum each month?
Your ex presumably can’t afford to get a mortgage himself so what is the hurry? Apart from the fact you would like to be rid of this last tie, i do understand that.
At the moment all these defaulted debts are at 0% interest and your house is not at risk. It would be VERY foolish to mortgage to cover these debts, especially at a poor rate of interest. Bad credit mortgage lenders always say “it’s just for a couple of years” but there is no guarantee you will be able to mortgage at a good rate in future and you could be stuck paying an expensive mortgage for a long while.
Sarah says
Thank you so much. He Believes I am affecting his credit rating and his will rise when he not tied to me. As I took on debts myself, he has had it easy. I was hoping more to have mortgage in my own name, before divorce finalised and Incase, he splits with gf or he then dicides that he owed a settlement figure, and if I pay the debts off. He may then state he payed half of these. Which would not be true. I will follow this advice, many thanks for your patience, you have been a huge help in knowing where to start in my financial affairs. I will now hold off, even trying with my current mortgage to get his name taken off or remortgage on my own, as I don’t wnat to ruin my chances for when defaults paid and my credit cards lowered. And also credit score raises to a better level. Once again thank you so much
Sara (Debt Camel) says
I think this is a difficult situation – I had assumed you had a written agreement with him about the house and your debts.
David J says
Hi, I have a few defaults & 2 ccj’s on my credit report, they are due to fall off approx 3 years IF i have paid them off by then, Am i able to apply for a mortgage, also what happens regarding my credit score. Does it go back to normal or will it remain low like it is at the minute, Would love to apply for a mortgage just worried it will be high rate!!!
Sara (Debt Camel) says
Defaults and CCJs will fall off your credit report whether they have been paid or not. And then your credit score will look great. If the debts have all been repaid or settled, you will then be able to get a mortgage at a normal rate.
You need to get a plan for your debts, not hope they will all go away and you can get a mortgage…
Lisa says
I had a 3 credit accounts that i defaulted on over 7 years ago, since when i have been paying a fixed fee every month to reduce the balances – none are showing on my credit file, but i am still paying the balances. I am looking to apply for a mortgage, will these impact on my mortgage application?
Sara (Debt Camel) says
yes they will, because the lender will see the payments you are making to them on your bank statements.
You could make them a settlement offer?
what sort of debts were these and are they now with debt collectors?
Jon Jones says
Hi,
I recently had some miscommunication with my energy supplier about a final bill which led to missed payments. This is recorded on my credit report as a recent late payment. Prior to this I had never paid late and this is visible on my credit report. Will that have an impact on applying for a mortgage? I have spoken to the provider and they say there is nothing they can do. Should I add a notice of correction? I am applying for a joint mortgage with my partner who has an excellent credit score.
Sara (Debt Camel) says
What sort of miscommunication?
Jon Jones says
I had believed I set up a direct debit and one payment went out and no further went out. I then was contacted by a credit collectors to make payments, the account is now paid off but it shows as late payments. It was simply a misunderstanding and lack of communication.
Sara (Debt Camel) says
Have you asked your bank if a direct debit was set up? If any DD payments weren’t made because there was enough money in your account?
Jon Jones says
I’ve contacted the bank and npower and it seems there’s nothing they can do to assist. Will this have a huge impact on a joint mortgage application? I do believe npower could assist but I don’t seem to be getting anywhere.
Sara (Debt Camel) says
Well if it’s one late payment it may not be too bad, but the current mortgage market is very difficult. It may all come down to how large a deposit you have.
Mandy says
Hi there,
I have a very old DMP and none of the accounts show on my credit files. I’ve checked the big four credit agencies via a multi-check website. I have signed into my DMP and can see that they still have my previous address. However, that address is very much a linked address on my credit file. I want to do some work to possibly seek settlements and get this old DMP shut down/paid off but don’t want to ruin my now very healthy credit score. If i update my address, will these historical debts ruin my current score and suddenly appear on the file? I want to apply for a mortgage (got an agreement in principle). I started the plan in 2004 but am paying very little, very slowly!!!
Sara (Debt Camel) says
The ancient debts may not show because they had default dates of more than 6 years ago.
So the bad news is that almost all mortgage lenders want to see your bank statements and they will show the payment to the DMP, won’t they? So your mortgage may be rejected because of that.
What sort of debts were in your DMP – loans, credit cards. overdrafts, mobiles, or what?
Gareth says
I have had a Dmp for around 9 years so they no longer show on my credit file. One idem just shows as linked to my spouse. My original debt was 90k, I did manage to settle half 4 years ago with the ones who accepted a settlement. I have 5 left and a balance of 27k. What I want to know is I have found they from a creditor reply none of the remaining can supply an original agreement.
My question is I have some funds and want to offer a settlement rather than just risk not paying for the nest 6 years and them reappear. What percentage would you suggest offering and should I suggest if they do not accept the offer I will stop paying.
Once settle with my credit improve quickly as nothing actually shows on my credit file and currently my rating is just below good.
Thank you in advance for your assistance.
Sara (Debt Camel) says
One idem just shows as linked to my spouse.
Can you explain more about this?
So you have asked the 5 remaining for a copy of CCA agreement and none of them can pruce it?
If they find it again (which after a 9 year DMP is pretty unlikely), the debt cannot reappear on your credit record.
If you want to make an offer, it may be best to first stop paying so they know you are serious. Then after a couple of months offer say a 5% settlement. But if the debt is not showing on your credit file, there seems little point in this.
Are you trying to get a mortgage?
If nothing shows on your credit record, nothing you do will have any impact on your credit score.
Gareth says
Hi Sarah,
Details of the idem connection:
Financial connections
These are people with whom you’ve shared a financial connection according to your TransUnion credit report.
MRS XXXXXXXXXXXXXXXXXXXX
Reported by Idem
Originated on 20 Mar 2013
Confirmed on 01 Apr 2003
Should I dispute this?
Yes none of the remaining creditors can produce a CCA
Yes I want to remortgage as I am on a self-cert still and paying 5% interest.
So if the debt have dropped off my credit searches and they are unenforceable to be clear that means that the creditors cannot do anything to affect my credit rating?
The Idem is one of the creditors which shows as a connection, is this impacting our credit scores?
And finally you suggest do not even bother offering any money as there is no advantage and after 6 years they cannot come after me and the worst case they find a contract and I just have to make a new arrangement?
Finally do I just tell stepchange that I wish to close my DMP? Do I have to give them a reason.
Thank you so much for your advice.
Sara (Debt Camel) says
Do you have a joint mortgage with your wife? Any other joint accounts? What is her credit rating like?
So if the debt have dropped off my credit searches and they are unenforceable to be clear that means that the creditors cannot do anything to affect my credit rating?
That is correct. Of course if the debt collector goes to court you would have to defend the court case, but this is very unlikely to happen, especially if you don’t ignore letters that are threatening court action but respond saying that they agreed on dd/mm/yy that the debt is unenforceable.
It would be polite to tell StepChange that all the debts are unenforceable so you are ending your DMP. Why not?
You can talk to a mortgage broker but the safe thing may be to not apply for a mortgage until you have 6 months of bank statements showing no payments to StepChange or to the creditors of the unenforceable agreements.
Gareth says
Hi, So the idem debt was a joint overdraft and has a balance of approx £1000, I could clear this or make a suitable offer if it is advantageous, again I do have a letter say it is unenforceable and it is with Hoist/Robinsonsway.
Credit ratings vary, so for me
Clearscore 417 (On stable Ground) wife – Clearscore 446 (looking bright)
Experian 977 wife – Experian 974
Karma 583 wife- Karma 596
I do not understand why these vary so much.
I have just paid my credit card I use so it is at 50% or less today, it only has a 2k limit and is not included within the dmp and has always been in good standing. Is it worth setting up individual LOQBOX to improve credit more?
Should I get another credit card or ask for my existing limit to be raised used even though I do not use it?
On our joint account we have £1000 OD, we use it but never go over it, it clears fully every month and gets used every month. I can clear it but thought it may be better to keep it as I thought it would help our credit scores.
Neither of us have any debts, my wife uses a next account for the kids clothes which goes up to 450 and down and I have the mentioned credit card with a 2k limit.
Sara (Debt Camel) says
is your mortgage a joint mortgage?
You have a letter saying an overdraft debt is unenforceable? That is unusual.
Don’t get another credit card! You need to get the balance on the current one down to zero and after that set it so it is repaid in full every month so you never pay interest.
Using an overdraft doesn’t help your credit score. Having it there unused is much better.
Does your wife may the next account off every month in full?
Gareth says
Hi. Yes Mortage is joint.
Yes I thought an overdraft debt could not be unenforceable that is why I am thinking I should strike a deal on it as it is not a lot of money and shows up as a connection.
No my wife does not pay off her next account every month but I presume you are going to say she should. I will clear all debts and then use them and pay them off every month going forward. With this then hopefully make our credit score better. Should we be ok to try for a mainstream Mortage in six months. Should I cancel the overdraft or is it better to just not use it?
Thanks
Thanks again
Sara (Debt Camel) says
It isn’t clear to me why this link for the old idem debt shows. In this sort of situation where there may be some error, it is hard to say how to “correct” it as it shouldn’t have happened. It’s not clear that clearing the overdraft and closing the account will help but it’s hardto see how it could hurt your position.
In general it is better for all credit cards, catalogues and overdrafts to have credit available but not use it. For credit cards using it every month and repaying in full is best. For overdrafts having it available and never dipping into it all is best. what % deposit will you have for a mortgage in 6 months?
Gareth says
It is a re-mortage, i owe £230k and the house is valued at £450k
i also have 70k in shares un isa’s but i do not want to touch it
Sara (Debt Camel) says
Well keeping the shares is your choice but you can effectively get 5% tax-free by paying a chunk off your mortgage… just a thought…
I suggest you talk to a mortgage adviser now about your options if your self employment income has held up well over the last 6 months.
Gareth says
Thank you very much for your assistance it has been very helpful ;)
Tom says
Hey there,
I took out a few payday loans a few years back, the last being 7 years ago. These have now all disappeared off of all my credit files with Experian, Equifax and TransUnion. Will a mortgage lender still be able to see that I have taken these out in the past and potentially hamper an application or am I in the clear and they won’t be able to see any of them?
Thanks,
Tom
Sara (Debt Camel) says
As the article above explains, there are two situations where a lender can see things which aren’t on your credit record – where they (or another part of the same group of banks) were the lender you had problems with and when your payments to a creditor show on your bank statements.
The first doesn’t apply to these payday loans. And I assume you finished paying the loans a long while ago so the second doesn’t either.
Paul K says
Hi Sara
I have 5 debts that I made arrangements with to halt interest and to pay in monthly installments over 10 years ago. In around 2 years they will all have been paid in full. However, I’d like to remortgage sooner than that. I have been given partial settlement offers but am worried they will then appear on my credit report. If they were defaulted over 6 years ago, I believe that wouldn’t matter but I can’t find out if any were ever defaulted (the debts have been bought several times by different credit agencies). What would you advise? Avoid partial settlement at this stage and either pay in full or pay over 2 years?
Thanks in advance
Paul
Sara (Debt Camel) says
Have you checked all three credit reference agencies to see if any of the debts currently show? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how t do this.
Keith Richards says
Hello
I have a 7-8 year old default, settled and no longer showing on my CR with Lloyds. All credit reports now squeaky clean.
We have an AIP with Lloyds as we’re porting a partners old mortgage to have ERC refunded. Can I proceed with application or will they decline me for the old settled debt?
Thanks
Sara (Debt Camel) says
I don’t know if Lloyds will find out about the old default. I I don’t know if they will care if they do.
Hash says
Hi Sara I have some credit card default and one Halifax loan default which is from 2011. All of this Default they sold it to third party And still I am paying them by standing order from my other Barclays account which I normally don’t use. I got NatWest account which is my main account using for getting salary and paying bills. Recently I applied for mortgage and I got AIP from Halifax and also booked for valuation on 16/10. Now my concern is do you think Halifax will check my 10 years olds default loan history?
Sara (Debt Camel) says
So the old defaults are all off your credit record.
But Halifax and any other lender is likely to spot the payments to them from your bank account. You need to supply all your bank statements when asked not just your “main account”.
And also Halifax may see the defaults from your old records.
Dave says
Dear camel
I want to get a mortgage for us I’m a farther of 5 my wife had a cardiac arrest and we are renting due to my partner Disability we need a bungalow so we are saving up for a mortgage but on my file I have 3 old default marks only I am advised that they fall off in June 2021 We have no more debts
Just them marks can I go forward for a mortgage early or wait until they fall off. Would get one
Sara (Debt Camel) says
I am sorry to hear about your wife, is she getting disability benefits? How old are your children?
Have those defaulted debts been settled? How long ago?
how large a % deposit do you have?
Akash says
Hi Sara, I had two defaults from LLoyds one for not paying the overdraft of 1500 and another for not making the credit card payment 1000, both defaults was in the year 2013. I used to receive loads of letters from Lloyds bank and debt recovery agencies, In the year 2016 mid, I cleared full amount to the debt recovery agencies and closed accounts with them.
Now I’m going for a mortgage and I got Decision in Principle with Halifax. I got good credit score and in my credit profile, there is no defaults and all looks good. From your blog I got some information regarding my issue “Lenders have their own internal records – A lender may also be able to see records from other parts of the same banking group, so an application to Halifax could perhaps be affected if you had had an old problem debt with Lloyds”.
Do Lloyds share my information to Halifax when I apply for a mortgage though it’s 6 years past? Do underwriter can see my history with Lloyds?
Sara (Debt Camel) says
I don’t know. It is possible. This is why I always suggest people go to a mortgage broker who may have a more detailed and up to date picture of who it is best to apply to.
I am not saying your WILL have a problem. Even if they see the old debts they may not care. But I can’t rule it out.
Hannah says
I have applied for a mortgage with my partner we both have good credit ratings and nothing bad on our credit files (checked 3) I finished an IVA over 4 years ago it doesn’t show on my credit file will the underwriter for the mortgage be able to see this or not? I didn’t declare I had an IVA as it’s finished and has been for the 4 years is this a problem or will it be for me?
Sara (Debt Camel) says
Were you asked on the mortgage application if you ever had an IVA or were ever insolvent?
Conor says
Hi Sara
I had a couple of old debts (2x overdrafts and 1 credit card) each of them a few hundred pound each from 3 banks Ulsterbank, Barclays and Santander) all 3 debts are from around 10 years ago and were sent to debt collecting agencies. I’m nearly about to pay them off but not through a debt management plan just ringing up each month when I get paid and paying them off in one go. Also rather than paying the debt collecting agency I paid the banks directly. I read an article on Experian that said if a debt collector checks your credit file it leaves a mark for 2 years. So I’m thinking that 2 years after I pay the last bank debt and considering the debt is over 6 years old I should be in a good position to be approved for a mortgage. I intend to go to a mortgage broker and be honest with them so that they know to avoid the 3 banks and it’s parent company’s. So I’m just wondering am I on the right track here or is the 2 year rule maybe not a thing?
Also – there’s a couple of other small debts that are now paid off that were from Sky and Three mobile that are now paid off. Again these are old debts from 10 years ago but just being paid off now also not through a Debt mgmt plan just paid off in one go.
Sara (Debt Camel) says
I have no idea what this “2 year rule” is – I suggest you forget it.
Which of these debts if any is still showing on your credit records? Check all three credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/. Don’t assume you know the answer, make sure!
Julie says
hi I took a loan with Egg in 2009 this was sold to Moorgate Loan Servicing later sold to Britannica Recoveries SARL-Mooragate to Idem in 2014. i entered a DMP with Step change in January 2013 I sent a complaint in May 2017 both Egg and Moorgate requesting that they defaulted 3-6 month after I entered DMP.
They refused stating “as you have continued to maintain reduced payments through DMP a notice of our intention to file a default on your credit file was not served”. I complained to FOS stating that they were affecting me as if I had an IVA or BY would be off my file in 6 years. By not recording a default it would be on my file for over 15 years after DMP in 2013. That I was being punished by paying off the debt in full over a longer period of time. The FOS sided with Idem.
All other debts from DMP defaulted and now have came off my credit file in 2019.
I stopped making payments to them in 2019 and they still did not default. I called them yesterday to update my payment plan for another debt I have with them and they mentioned this one stating not currently reporting on credit file due to corona virus but will come back on. I am at a loss what to do I understand they can’t take me to court without a default I just dont know why they wont default it.
Sara (Debt Camel) says
my payment plan for another debt I have with them
what sort of debt was this? when did it default?
How many DMP debts are you still paying?
are you looking at getting a mortgage? (I am asking because that is the topic of the article on this page.)
Juli says
I’m very sorry Sara I have posted on a wrong link pleas accept my sincere apology
Sara (Debt Camel) says
No problem – that means I can ignore the tricky mortgage aspect!
Can you answer the other questions.
Julie says
I have 3 debts on self managed dump moorcroft Iden and wescot. Cc or personal loans all defaulted 2013 all left credit file 2019. My dump is running for another 7 years. Tia
Sara (Debt Camel) says
There isn’t any clear route forward to getting an early deafult added now after loign the FOS case.
You can at some point ask for a default to be added in 2019 when you stopped paying – there isn’t really any hurry to do this as it will be there until 2025 and your credit record will be a bit better before it is added.
They arent defaulting it as they know it is often easier to get people to pay towards a debt which is reported on your credit record.
Have you read https://debtcamel.co.uk/ask-cca-agreement-for-debt/.? Some of those 4 debts may be unenforceable in court – in which case you could just stop paying. that article explains about this.
Shane says
Hi can you tell me if a lender can see my old default marks that were taken off in November 2020.
And when shall I go for a mortgage.
Thank-you
Sara (Debt Camel) says
were the default marks deleted or did they drop off as 6 years old? Has the debt been repaid?
Julie says
They dropped off after 6 years
Sara (Debt Camel) says
and have they been repaid?
Chris says
Hi, we are looking to apply for a mortgage later part of next year. My wife had her name changed when she was a child to her dads surname. She now has my surname as we are married and all documents – passport, driving licence all credit accounts etc are in hwr married name. We don’t have her change of name deed from when she was a child and we have mislaid the marriage certificate. Will these still be needed even though all her documents etc are in her married name. Just want to make sure we have everything in place in good time as we aren’t even sure how to get the change of name deed as it was over 30 years ago.
Sara (Debt Camel) says
I don’t think you should have a problem there. But it’s simple to get a copy of a marriage certificate https://www.gov.uk/order-copy-birth-death-marriage-certificate.
Kelly says
Hi Sara. Me and my husband are looking for a remortgage this year because we have had 3 defaults that have either already dropped off our credit file or are about to (so assuming these won’t be taken into consideration by a lender). However, we had a joint current account years ago that we stopped using in 2014 and there is a default on both our credit files with a default date of 31/03/15. On my husbands file it shows a £0 balance and on mine it shows £1721. We are not disputing the amount and I was hoping to be able to make an offer to NatWest after the default date as we have never had any interactions either way about this debt so I’m assuming it would become statute barred and so we could offer a lot less to them? Also, with a view to wanting a mortgage, this account shows on credit karma as ‘open’ so does that mean unless we pay it will stay on the file? Or does it drop off with the default date? Regards Kelly
Weatherman says
Hi Kelly
It sounds like the default date for your Natwest debt (I’m assuming an overdraft?) is the same date as the statute-barred timer started. So once six years has passed from that, it will a) not show on your credit report (it should drop off Credit Karma then) and b) not be enforceable.
Once a default’s dropped off your account the lender can’t see it. But they might ask you about *any* debts that you owe, and you’d need to tell them. So trying to get a settlement on any of your debts even once they’re statute-barred and not on your credit report might be a good idea – and as you say, you can probably make quite a low offer, as if the lender refuses, they don’t have many more options available to them!
Sara (Debt Camel) says
The problem with waiting for a debt to become statute-barred is that it could be sold to a debt collector who would go for a CCJ before than.
Also it is never assured that a debt is statute-barred because of a default date on the credit record. You could talk to National Debtline on 0808 808 4000 about this.
Really I suggest an early settlement offer may be much less stressful for you.
Kelly says
Hi Sara, thank you for the info. Yes it is an overdraft, and I would like to try and settle it as like you say I don’t want it coming back in the future I just want rid! I have already settled one default for a cc and my husband has a payment plan for an old loan so it’s just this one outstanding now. I’ll wait until after the 31st of March and then contact them with an offer. Thanks again
J says
My hubby is 50/50 whether or not he had a default with NatWest about 20 years ago. Now its been suggested to apply to them for a mortgage…..would they be able to see that from such a long time ago?
Weatherman says
Hi J
They might be able to – although it won’t be on his credit report, individual providers might keep records for longer (20 years would be a bit extreme though). But it’s very unlikely they’ll treat it as a warning sign so many years later.
Mike says
Hi I’m looking to apply for a mortgage, sold my last home. In 2019 and up to Oct last year I had to take out additional lines of credit to get the house up to standard , I took a secured loan which I used to consolidate and do home improvement, I decided that I’d rather sell so changed the secured to unsecured 3months later . Iv never defaulted on any loan , Iv paid a lot off aswell with my equity , currently have 4 loan accounts and 2 credit cards all update to date and credit utilisation at 25% , broker has run affordability checks and all looking good with that . Do you foresee me having any issues when go for mortgage
Sara (Debt Camel) says
I think your broker is best placed to answer this question. Taking out an unsecured loan to pay off a secured one presumably means you have a lot of debt at the moment.
Mike says
It was for 14k to pay it off back in 2019, my salary is just over 40k a year
Emma says
Hi Sara I have 8 defaults on my credit report these are four years old is their any chance I am able to get a joint moragte , or do I have to wait till they all come off ?
Sara (Debt Camel) says
Have they been repaid? If yes, how long ago?
Tay says
Hi Sara
In 2012 I defaulted on a loan and went into a DMP. Since then, the loan was paid back in full and the default was removed from my credit file in March 2018. My credit report on Experian shows that I am in the excellent score bracket and in the section that highlights “adverse events” it shows “no public records” for Bankruptcy, CCJ or IVA. I can’t see that old loan on the list of settled accounts at all.
My partner owns our house, but we are thinking of moving and adding me to the mortgage – do you think that my old default can still be seen by lenders and would this affect my ability to get a mortgage?
Thanks
Sara (Debt Camel) says
from what you have said, a mortgage lender won’t be able to see this old loan unless the loan was from the mortgage lender or another lender in the same groups of banks/lenders. So make sure you don’t apply to Halifax if you defaulted on a Lloyds loan for example.
Martin says
Hello
Many years ago I defaulted on a credit card and have been paying a debt collector back for 5 years now. Very small amounts each month of £50. Total debt was £8k
The default is no longer on my credit file but will the payments be an issue when mortgage lenders see my bank statements. Credit scores are good, I have no overdraft or other outstanding debt.
Sara (Debt Camel) says
Yes it will, as a lender will ask for your bank statements and see the payments. They are very likely to reject an application.
How large is the remaining debt?
Some options are are to pay it in full now, offer a full and final settlement or ask for the CCA (see https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for why and how to do this and hope they can’t find ut so you can safely stop paying.
If you just stop paying, the creditor is likely to ho to court for a CCJ.
You need 6 months of bank statements with no payments to them before a mortgage application.
Fiona says
Hi Sara
I have one defaulted account settled in full in December 2017. Credit score now good/excellent. For answering the question ‘Have you ever failed to keep up regular payments on your mortgage, other loans, hire purchase agreements, credit cards etc.?’ presumably I have to answer ‘yes’ until it drops off, but is it still ‘yes’ after it has? The question is ‘ever’ rather then ‘in the last 6 years’ so it would be lying to answer no? Are my chances of getting a mortgage at the moment hopeless do you think?
Sara (Debt Camel) says
who is asking this question? I suggest you go through a broker.
Fiona says
Hi
Thanks for your reply. It’s an initial financial form for a Share to Buy property who ‘will assess the share you can afford to purchase under the scheme guidelines.’
John says
Hi,
I defaulted on an overdraft with Ulster bank in 2014, £800, the debt was sold to a dmp. I never acknowledged the debt or responded to their requests for payment or settlement. The debt dropped off last year on my CR’s and my score has been pretty good. I’ve have an aip with Halifax for a mortgage. Will they be able to run any searches that would uncover the debt? They are not part of the same banking group to my understanding. But would the debt be attached to the address in any form that would be discoverable to Halifax? Could I pay it off by credit card? Do lenders wish to see credit card statements ?
Best
John
Sara (Debt Camel) says
You are assuming it is statute barred. When was the last contact from a debt collector?
Debts aren’t attached to addresses. I am not sure how Halifax could find out about that.
A lender could ask for anything they want, it isn’t normal to ask for credit card statements thst I have heard.
Laura says
Hi Sara
I am looking to get a mortgage with my partner in October. My income is 27565 per year and his is 24480. His credit record is clean, just an overdraft of £1000 which he rarely uses.
I on the other hand have a bad credit history. I have 12 myjar loans all paid and they’ve said they are removing all from my credit file. 4 defaults all over 5 years old, Avon are removing theirs so that takes me down to 3. Provident drops off next month and the other two will come off in September and October this year.
Mr lender are removing my two loans that would have been removed in 2022 anyway.
My concern is safety net credit, it shows arrears of 21 months until October 2019 when it was satisfied.
Is this likely to affect my mortgage application?
We have a £30k deposit and looking at houses maximum £200k
Thanks
Laura
Laura says
I should add I have current debt of £1800 on credit cards and paying them down. One credit limit is £225, two are £400 each and one is £1000. Should I close these down? All opened in the last 2 years. Only other debt is next catalogue with balance of £193 out of £300 (also paying this down)
All payments bar the safety net have been made on time.
Laura
Laura says
I also have 7 apfin loans all paid on time due to drop off in 2022.
All defaults have been paid, the biggest one was with Lowell for £1259 which drops off October.
Sorry for waffling on!
Jamie says
Hi ,
I am looking at a small loan for a car purchase of £3000 paid over 3 years . Me and partner are looking but in 4/5 years time we are wondering if this loan will
Damage our chances even though it will
Be all
Paid off ?
Sara (Debt Camel) says
credit that is paid off shouldn’t be a problem for a mortgage – with the exception of payday loans of course!
Jamie says
It’s from 118 money I am on year 5 of a early settled IVA so options are limited . Will this still have an effect or be fine ?
Sara (Debt Camel) says
ouch, probably expensive then. You can’t get through another year before getting the car so the IVA has dropped off your credit record?
Laura says
Hi Sara
I am looking to get a mortgage with my partner in October. My income is 27565 per year and his is 24480. His credit record is clean, just an overdraft of £1000 which he rarely uses.
I on the other hand have a bad credit history. I have 12 myjar loans all paid and they’ve said they are removing all from my credit file. 4 defaults all over 5 years old, Avon are removing theirs so that takes me down to 3. Provident drops off next month and the other two will come off in September and October this year.
Mr lender are removing my two loans that would have been removed in 2022 anyway.
My concern is safety net credit, it shows arrears of 21 months until October 2019 when it was satisfied.
Is this likely to affect my mortgage application?
We have a £30k deposit and looking at houses maximum £200k
I should add I have current debt of £1800 on credit cards and paying them down. One credit limit is £225, two are £400 each and one is £1000. Should I close these down? All opened in the last 2 years. Only other debt is next catalogue with balance of £193 out of £300 (also paying this down)
All payments bar the safety net have been made on time. Paid this off in October 2019 was about £450.
I also have 7 apfin loans all paid on time due to drop off in 2022.
All defaults have been paid, the biggest one was with Lowell for £1259 which drops off October.
Thanks
Laura
Sara (Debt Camel) says
My concern is safety net credit, it shows arrears of 21 months until October 2019 when it was satisfied.
Is this likely to affect my mortgage application?
yes.
You could send Safety net credit an affordability complaint. Use the normal template for a payday loan. If you win, the negative marks should be removed and you may even get some cash back,
Laura says
Hi Sara
Thanks, is it likely to have a big impact as it will have been two years since the last arrears and no default on there? Think I tried to make an irresponsible lending complaint and they said no as I owed them at the time, I have just sent another one to see what they say.
Laura
Sara (Debt Camel) says
I hope you will be ok, definitely go through a broker, not direct to a high street lender.
If you have already complained it’s a shame you didn’t take it to the Ombudsman, the lender probably will immediately reject a new complaint as they have already replied.
Laura says
Thank you. Will use l and c or habito.
With regards to my current credit card situation, what would you recommend? Keeping all four open when paid off or closing the three smaller ones?
Laura
Sara (Debt Camel) says
I would clear the 225 one asap and then close that.
Laura says
Looks like I had a final response in 2017 and didn’t take it further so annoyed at myself! I just have to hope I will be able to get a mortgage.
Richard says
Hi, I am in a DMP and have been for about 8years with about another 7 to go at current payment levels. I have had a very good experience o far and kept up dialogue and payments.
Therefore all my defaulted debts are no longer showing, the last having dropped off my record 2 years ago. Having checked on Experian, I have quite a good credit rating again.
One of the creditors has now offered me a 50% settlement figure and I am tempted to take it but am concerned it will then cause a flag to appear on my credit rating again even though that original debt no longer shows. I am content to have a good rating and continue with DMP for next X years but if I can get debt free quicker then would be good. I just don’t want undo the very good work of last 7years by doing what I think is something good but might actually work against me.
Thanks
Sara (Debt Camel) says
If you settle a debt via a partial settlement, this will not cause it to reappear on your credit record. Settling as many as possible this way will really speed up your DMP.
The creditor who offered it may be prepared to accept less than 50%…
Also read https://debtcamel.co.uk/settlements-old-debts-cca/ and decide if you want to ask this creditor or any other creditors to produce a CCA agreement for the debt. If the debts have been sold to a debt collector and are credit cards, catalogue or loans, this is worth thinking about.
Richard says
Thanks Sara, I will check those links out tomorrow, a lot to read through and digest.
Good to know main question regards any settlement re-flagging it as credit rating is good now, as is my partners whom I entered into the DMP with.
Just checked my PayPlan acct and it’s actually Feb 2010 the DMP started, so over 11yrs ago with 7.5yrs to run. I’ve paid 10k back from 17.2k with the remaining 7.2k consisting of 6,5k in credit card and bank loan debt. Only £700 was a Halifax overdraft that would have no CCA attached to it. One is Northern Rock which shows it’s age! In theory I could try remove all but £700 of my DMP amount but as my credit rating is good I didn’t see any reason boat and risk any CCJ etc that would start it off again for 6years
I thought entering into a DMP for so long was admissable as evidence in court that I accept the debt is mine regardless of whether the original CCA can be produced. Is that a debt collection myth to make you pay?
At moment I pay no interest as that’s the other thing they threaten you with, don’t pay us and we will start the interest again. Do you know if many actually follow through with this?
Sara (Debt Camel) says
I thought entering into a DMP for so long was admissable as evidence in court that I accept the debt is mine regardless of whether the original CCA can be produced.
Making payments through a DMP does indeed admit the debt is yours. So these debts will never become statute barred.
But asking for a CCA is not saying you deny the debts are yours. It is a legal requirement that a creditor can produce a true copy of the CCA agreement for a debt – if the creditor wants to sue you in court for the money, it is fair that they can produce the contract T&Cs, is it not?
If a debt had been defaulted and sold and no interest is being charged, they are not going to go back on that!
You don’t have to stop paying these debts unless they cannot produce the DMP.
This is your decision, You don’t have to do this. I strongly recommend accepting F&F offers – there is no possib;e downside to that at all. But 50% after an 11 year DMP isn’t that generous. The debt collector probably paid less then 10p in the £ for your debt…
Richard says
p.s
Funny (if you can call it that) until recently I worked 3years at one of the biggest debt management companies and I know the last thing they like to do is litigate on small amounts and with new FCA rules on being fair to customers they do tend to accept any low payment as long as a payment is being offered and made. To be honest, I found this company very fair in it’s dealings with customers. I was forded to pay off in full a disputed debt of £200 as unfortunately said employer bought the debt in a portfolio. I couldn’t allow them to realise an employee owed them money as my position would be untenable (I passed their regular employee credit checks as debt had dropped off credit file)
I seriously do not like PayPlan, never have. I believe they only have the creditors at their heart because at end of day that’s why they get paid from me, they don’t want me to settle and their advice over the the years has always seemed centric to creditors. The debt management company I recently worked for actually stopped promoting PayPlan about 4yrs ago and removed them from their debt advice. That in itself says a lot!
Thanks again,
kate says
Hi,
I am hoping to apply for a mortgage late next year with my partner, he already has a really good credit report and has started saving for a deposit, at the moment i am working hard to pay down some credit card debts that i have accumulated over a 3 year period, these totalled at 23k, and as it stands i have 8k left to pay off, i have never missed a payment on any of my credit card accounts, but i have 2 or 3 late payment marks on a store card i had 4 years ago, no dmp or iva or ccjs, i am hoping by mid next year to of paid off all my debts and be mortgage ready by the end of next year, my question is… would these debts affect my chances of being accepted for a mortgage if they are paid off? I’m just worried that even though i have paid them off and never missed a payment lenders might look at the high amount of credit and turn me down
Sara (Debt Camel) says
so two different issues –
1) the store card with late payments. I suggest you prioritise getting that one cleared and close it.
2) the high amount of credit available. Anecdotally some lenders may be worried by this. Others may not be. But there is a simple solution, close down some of the accounts. Do you really need more than 10k of available credit? So choose which ones you will close – usually the ones charging a highest interest rate – and prioritise clearing them and close them when they are cleared. Your credit score gets a temporary blip, but you have other accounts you are paying on time, it will soon recover.
Kate says
Hi, thankyou for your reply.
I don’t have a balance on the store card, the late payments were from 4 years ago but still showing on my credit report, I am still using the same account from time to time but paying in full each month, not missed a payment since, should I still close this down or keep open and use responsibily?
I have already closed down 2 credit card accounts that have been fully paid off, the 5 remaining I am still paying down and hope to close these as well when They are paid, would a mortgage lender look at my high credit usage and not accept me if the debt had only recently been paid off over a two year period?
Sara (Debt Camel) says
So there is no “guaranteed plan” here. Different lenders may prefer different things.
But I would say close that store card now. You want it gone as soon as possible and that won’t be until 6 years after it is closed. Start that clock running now.
I suggest you keep one of the credit cards open when it is clear and use that every money and repay in full every month.
I don’t think any mortgage lender is likely to reject you because you have cleared a lot of debts in a couple of years – that shows determination and a good approach to your finances.
Melanie says
Hi so I have around 10k in debt over which has accumulated since I was 18 (now 31) I was stupid when I was younger and now trying to make up for it .I have 1 loan which I pay a monthly amount for, 1 credit card and 1 store account. My husband has the best credit rating where as mine is 521 on transunion. My husband is wanting to remortgage as the house was bought for 130,000 owing 98,000 and it has just been valued at 200,000 we are wanting to extend. Will my debt prevent this from happening ? I am trying my hardest to clear everything it’s just taking time
Sara (Debt Camel) says
So the current mortgage is in your husband’s name only?
How much are you paying to your debs each month? Presumably a lot is interest – how much do the debts drop each month?
sarah says
hi I was hoping for some confirmation….back in 2010 I had a student ulster bank account and a credit card of 250 im sure I defaulted on the credit card and I don’t THINK it was ever paid. its not on my credit file but I’m going for a mortgage with natwest and I’m guessing it will flag up. do you have any idea how serious they will treat this given the age?
Sara (Debt Camel) says
I have no idea. Why are you applying to NatWest? Choose another mortgage lender not related to Ulster Bank!
Jo says
I apologise if this has been asked before but I need some advice.
My husband separated from his ex 15 years ago. He remained on what was back then a Northern rock mortgage until she was able to sort herself out financially. She in the interim missed payments on the mortgage resulting in the house being sold at auction for a lesser value resulting in the deficit being passed to my husband as she declared herself bankrupt. Now my issue is, we have been making a monthly payment ever since we were hit with this and every year we complete an income and expenditure form and agree to continue paying the same amount. Several times we have offered a lump sum to squash the debt but never get an answer as to whether they will accept this.
Now I have a mortgage in my sole name but we are looking to buy jointly. I have been to see a mortgage broker and in her 20 years experience she has never come across anything like this. We don’t want to buy a house if landmark can come knocking. The broker needed to see how it sat on his credit report as we don’t know if it is classed as a mortgage or a loan as it isn’t secured against anything.
However, on requesting husband’s credit report this deficit does not show at all. Has anyone had anything similar and can advise if we are paying something we shouldn’t be or what this classed as? Any advice or direction of who to speak too would be gratefully received 🤞
Sara (Debt Camel) says
how large is the remaining balance? how much are you paying to it a month at the moment? is interest being added to the balance?
Jo Ward says
We haven’t had a statement in a long time but approx £45k and we pay £100 a month. Husband was informed no interest was being added but without a recent statement I can’t say if that still stands .
Sara (Debt Camel) says
What a shame he did not go bankrupt when his ex did.
This article explains how shortfalls after a house repossession show on your credit record: https://debtcamel.co.uk/mortgage-repossession-credit-record/ – so if it was more than 6 years ago it is correct that it has dropped off.
This debt is just like any unsecured debt now – it does not have any priority status. But as he has been paying it, it will never become statute barred. If he stops paying they may decide to take him to court for a CCJ and if he owns a property they could then apply for a charge over the house. I can’t guess how likely that is.
Rebecca Hales says
Hi, I have an old debt from more than 6 years ago. My credit score is perfect with no red flags at all but I failed my credit check. The debt outstanding to lowell was £250 of which I have been paying monthly since.
So my question is, could this be the reason for the failed check? I paid the remaining amount yesterday so am hoping that when I try to apply with another bank maybe it won’t show?
I assumed after 6 years no matter what that there was no trace of the debt. But after reading some of the posts on this feed I am thinking maybe it’s incorrect? Could you please help?
Sara (Debt Camel) says
What credit check did you fail? Was it from your current bank?
Who was the old Lowell debt originally owed to?