No announcement yet.

Remortgage With Defaults/Arrangements

  • Filter
  • Time
  • Show
Clear All
new posts

  • Remortgage With Defaults/Arrangements

    Hi folks

    We've been stuck paying an over-inflated standard mortgage for years and now that it's coming up to 6 years+ since most of our debts were defaulted, we're considering the possibility of my partner taking retirement from his long-term employer and using most of his pension lump sum to clear around half of our mortgage, and then reducing the remaining term.

    Will the fact that we had all the defaults (and are still making token payments against a couple of debts) be incredibly limiting in terms of mortgage lenders / rates?

  • #2
    Remember that 6 years and 1 month after a default is registered with a CRA they drop off your records even if you are paying a small sum.
    I'm an Official AAD Forum Moderator and a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of allaboutDEBT Ltd. Any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - find a solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it to or send a message to any of the Forum Site Team. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.


    • #3
      I didn't realise those that were still receiving payments would drop off too, I assumed they'd be there until they'd been cleared.That's really good to know, thanks Cym

      Given that we've had no formal credit (other than mobile phone contracts) for over 6 years, would we need to spend time rebuilding our rating to be a viable option to standard High Street lenders or would it potentially be a case of going to a mortgage advisor and seeing what options they give us?

      We've a few months yet before this becomes a properly viable option as there's still one debt which won't become SB until around August, I'm just trying to look ahead and reassure OH that he won't have to stay in this particular job for another 25 years! .


      • #4
        Would you also consider remortgaging with your current provider? It could mean less admin hassle, and possibly lower associated fees.


        • #5
          Yes, Iíd definitely consider staying with them - they are one of the debts (credit card) Iím still making token payments on so Iíve avoided contacting them about the mortgage so far in case it pushed them into action with the cc. Thankfully itís one of smaller debts so hopefully weíll be in a position to negotiate a settlement in the not too distant future as I certainly donít want to end up in a situation where they want to add it on to the mortgage (been there, done that in the past, before running up even more debts again afterwards).


          • #6
            I would wait until the autumn when your 6 years is up and then check your credit file every month and see what drops off.

            If one of the unpaid cards is with the bank that you have a mortgage with then they might not be the best option for your first attempt at new credit as you will still be on their system and you dont want the computer saying no.

            When your file is clear I would try a broker that specialises in unusual credit history and see what you can get, maybe go for a low introductory rate and then remortgage as your credit history improves and as the introductory rates expire.

            Good luck.


            • #7
              Thanks Feb17 Good plan about waiting and checking the credit files later on, it's something I've avoided doing for over 6 years as I know it won't be a pretty sight lol.

              A low intro rate for a couple of years is exactly what I'm hoping we'll be able to do, as such once my partner does receive his pension lump sum and uses it for the mortgage, the loan to value of it will be reduced which should help with rates too I'm hoping (or at least balance out the rubbish credit history).


              • #8
                I thought you had been checking your credit file so suggested waiting until you get nearer the time for some final checks.

                If you haven't looked at your credit report for 6 years it's time to look so that you can check the default dates are correct and look for any other errors such as electoral role errors.

                One of my defaults has the wrong date which I will correct sometime, no rush yet as I am only 1 year in so plenty of time to watch and see what changes.

                some of the free credit report sites are




                Be aware that most of the 'free' sites will try to sell you credit and loans so just ignore the offers to 'help' as that would result in searches on your file that you don't want.
                All you need is to see the various account default details.

                My favourite report site is This has a monthly fee after the first 30 days, so maybe try that and then cancel or do what I do and 'pause' the account for 6 months so you don't get charged for a while. re-enable it when you want to check nearer application time.

                I find that checkmyfile gives more data than the free sites, it shows the 'reported until' date which is useful to help spot errors.


                • #9
                  Great info and thanks for the links, I think it was probably Experian I used last time. But no, I've not been anywhere near our credit reports in a very long time - I thought I'd read something about it flagging up things that could make creditors become more interested in you, but to be honest my head was completely all over the place 6 years ago when the rug was well and truly pulled from under us, so it's quite possible I misread or misunderstood at that time.

                  I'm pretty sure my own records are spot on with dates as being meticulously organised with paperwork has hugely helped me to get through the last few years, but as you say, I should probably check to make sure that the dates have all been reported correctly.