Another Mortgage Question

[Devilstreak]

Me and the OH have been renting for a while and decided to buy a house.
Found out that the OH has a default on her Credit report, Therefore mortgage companies don't like her very much and I don't fancy having the whole thing in my name.
The mortgage advisor told us it is an "adverse" notification. Which with my little knowledge tells me that the debt was never paid? The balance on the report is also showing £700 odd. Although she swears blind that it was paid off in full, albeit a few months late. The debt in question is a phone bill from 5 years ago.

If it was paid off in full surely she would be in a better position? At the minute the mortgage companies are saying it will be another 2 years until it has gone from her record.

Is there anything we can do to clear it? Ie prove that the full amount was paid, will this change the report?

Sorry for all the questions and thanks for your replies in advance

Dan

[Anthony Micallef]

Contact the phone company and confirm that this amount has been satisfied. Then ask them to write to you this affect. You can then send this info to the credit company and ask them to mark their records as satisfied. The credit report company website should give you more details.

[Devilstreak]

Thanks. Tried to get in touch with the credit report company but had no return yet. Also the phone company won't release any information as they can't go back further than 2 years. Which I know is rubbish, as all records have to be kept by law for 6 years plus the current financial year. Ie 7 years.

Would help if the phone company call centres spoke English.

Thanks anyway. I shall continue down this path.

[hamski]

As the default was 5 years ago, there should be a high street lender to take you on at high street rates. Having it marked as satisfied will help, but won't remove the default.

[andrewh]

well not really as if she were to run up new debts and not pay then the company could put a charging order on her/his house.

Edited by andrewh on Saturday 19th June 04:17

[Devilstreak]

Quick update. We got the report from Experian, Which now marks the debt as Satisfied but still as a default notice.
The one mortgage advisor we saw still says lenders won't touch her?

Is this right?

hamski said:

As the default was 5 years ago, there should be a high street lender to take you on at high street rates. Having it marked as satisfied will help, but won't remove the default.

Hamski, sorry I didn't see your reply earlier. Are you sure of this?(the high street lender part) I don't want to waste any more of a mortgage advisors time if it's not possible. As doesn't each person that delves into her/our history leave a trace, which will look bad on us?

[scotal]

Devilstreak said:

The one mortgage advisor we saw still says lenders won't touch her?

Is this right?

It depends, would be the correct answer to that.
Some lenders will look at recently satisfied defaults, others won't. It will also depend on what else your "file" contains as to whether you fit the lender other criteria.

Devilstreak said:

As doesn't each person that delves into her/our history leave a trace, which will look bad on us?

Not if the advisor is doing their job properly, no.
YHM BTW.

[Devilstreak]

Thanks for the reply. YHM