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Topic starter
19/07/2016 1:51 pm
Hi There
I was wondering If you can help me. My partner is trying for a mortgage and has been informed from a mortgage broker that he will not be considered due to his credit file having a default from June 2016. Below is what the mortgage broker advised.
"There are still defaults showing on the file from June 2016 ÔÇô even though you have entered a trust deed/debt management plan these are still registering at that time. This may be something to discuss with whoever advised you previously but it is not something a lender would even consider until at least 3 years from that date (i.e. June 2019)"
When I looked at his credit file he has 2 defaults which the default date was 30/09/2010 and the other 20/08/2010 and the record was last updated in June 2015. Am I correct in saying these should fall off the report in the next few months and has nothing to do with when the report was updated?
He entered a protected trust deed and record date was 20/08/2010 but as above I thought this comes off your file 6 years from issue record date. Should the default date match the record date for the trust deed?
I am not sure if we are missing something but I do not understand the June 2019. Can you provide any information on something I have missed?. We don't want to wait 3 years unless we have to.
Thanks in advance
19/07/2016 2:41 pm
Hi traci1205 and welcome.
Default notices (for debts included in trust deeds) should be dated no later than the start of the trust deed.
They (and the trust deed itself) will fall off a credit report six years after they appeared.
One default notice seems to be correctly dated, and the other a little late. Regards the late one, you could contact the lender demanding it be amended. Or you could just wait an extra month for it to disappear.
I'm not really sure about that 2019 comment for two reasons:
1 - It sounds like they'll disappear soon enough.
2 - Every mortgage lender has different acceptance criteria.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
20/07/2016 10:21 am
Hi traci1205 and welcome to the forum.
In my experience some financial advisors only want to deal with straight forward cases i.e. good level of deposit, good affordability and good credit rating. If there is a problem with the credit rating they may not go that extra mile to try and secure a mortgage and simply just advise it's not possible at this moment in time.
I would say it's always best to speak with a couple of financial advisors who deal with the whole of the market. You may find an advisor who is more willing to go that extra mile to help your partner. Lending criteria is starting to relax a little and more mortgage products from what I'm told are coming onto the market on a regular basis.
I know for example that Glasgow Credit Union will consider lending to an individual who has been discharged from their Trust Deed for 1 year. Their defaults would still show on the credit file but they look at all of their lending criteria and not just focus on the credit rating aspect.
As TDA has advised the defaults should fall off 6 years from the point they were put on. It could be a good idea to wait until the 6 years has passed then look at the credit file. These should have fallen off and it will look more positive.
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