Mortgage possibilities with very old debts

[tuffet]

Hi All,

 

I have spent the last few days reading thousands of posts and trying to get a grasp on things

but i can't find anything similar to my dilemma.

 

Will try and keep it brief as poss.

We have a decision in principle with our BS.

We went directly to them as the OH banks with them,

they have the best rates and they are are by far the best fit for our needs.

The DIP went through fine with the credit check as both of our credit files are spotless.

 

The problem is i still have old debts totaling approx £30K from between 8 and 18 years ago.

Yes, the large percentage of this debt goes back to 1998!

 

I have somehow got away with minuscule payments for several years which i negotiated myself, approx £20/month in total.

There are a total of 7 debts (mostly now with Cabot) with 2 of the early ones having CCJ's and the rest defaults.

 

We now need to make an appointment to process the full application

and i know one of the questions will be regarding Outstanding Debt'.

 

Although the aforementioned old debts are no longer showing on my credit report

they are of course technically still outstanding.

I will have to mention them and this will obviously go against us!!

 

I can of course not mention them but this will be dishonest

and could lead to the mortgage being withdrawn after exchange

(if they found out) which will mean the possible loss of a large deposit.

 

Although no longer showing on my credit report the payments to the DCA's will show up on my bank statement.

They only require to see 1 months statements so i could of course stop paying by SO/DD

so i have a 'clean' month but again this is dishonest and i wouldn't chance it.

 

Maybe they wont care about the old debts or maybe they won't notice (clutching at straws here!).

 

The only solution i can see is to try and get low F&F settlements but i only have approximately £2-3,000 spare at the moment.

If they accept i cant see any problems but the chances of all of them accepting 10% seems remote.

 

Would welcome any thoughts from the experienced members.

 

Many thanks.

 

PS - I know i have been 'cashcowed' for several years and have never asked for CCA's.

Unfortunately finding a way not to pay the debt wouldn't stop it being outstanding so wouldn't help my problem.

[dx100uk]

my pers advice

you say nowt.

 

sadly yes you are being caash cowed

though p'haps not on the ones with CCJ.s

 

but ofcourse that doesn't mean you owed them even before the DCA's got the CCJ's.

 

yes IF I WERE IN THIS SITUATION

stop all payments

get the statements clean for your needs

and then fire off CCA requests as the forest come thru your new door.

 

dx

[tuffet]

my pers advice

you say nowt.

 

 

sadly yes you are being caash cowed

though p'haps not on the ones with CCJ.s

 

 

but ofcourse that doesn't mean you owed them even before the DCA's got the CCJ's.

 

 

yes IF I WERE IN THIS SITUATION

stop all payments

get the statements clean for your needs

and then fire off CCA requests as the forest come thru your new door.

 

 

dx

 

Thanks for reply, dx

 

I agree that your suggestion would be nice but it comes with risks.

 

We are looking at a new build so there will be 5 months between exchange and completion so plenty of time for the BS to find a problem and pull their offer. I suppose that if my credit file doesn't change there will be nothing for them to find?

 

Do we not also run the risk of the DCA's getting an attachment order to my new house now that i own one. I am also assuming that the DCA's still look at my credit file for any chages after all these years?

 

I still favor the full and final but they would need to accept very low offers very old debts. What are the chances?

 

Maybe i will stop the SO's and find another way to pay so not affecting any change in the short term.

 

More confused than ever about the best way forward.

[dx100uk]

F&F doesn't prevent court.

no matter what letters they/you write and sign.

 

the debts don't show

paying or not or F&F or not wont bring the debts back on the file

nor improve you file.

 

if they go for CCJ's then you defend it

should be easy an cash cowed debts.

and they cant get a charge without a CCJ first.

 

your call

[irish_stan]

Hi Tuffet

 

If it helps I have just been through the exact same scenario,

in fact maybe slightly more complicated as I have an attachment of earnings on my wage slips .

 

 

I didn't explicitly lie,

when asked the question regarding outstanding debt I replied nothing that effects my credit report,

in fact you will see some lenders specifically state any debt within the last 6 years.

In my scenario the application went through and have just received my formal offer.

 

Hope this helps

[tuffet]

Hi Tuffet

 

If it helps I have just been through the exact same scenario, in fact maybe slightly more complicated as I have an attachment of earnings on my wage slips . I basically didn't explicitly lie, when asked the question regarding outstanding debt I replied nothing that effects my credit report, in fact you will see some lenders specifically state any debt within the last 6 years. In my scenario the application went through and have just received my formal offer.

 

Hope this helps

 

Hi Stan, Thanks for the reply.

 

I have no doubt at all that i can get this to the 'formal offer' stage.

 

What worries me is further down the line the offer gets withdrawn when 'further checks' reveal this very old debt. If this is after exchange of contracts i will probably lose a deposit of £20,000 as i am contractually bound at this stage.

 

We are looking at a new build with nearly 6 months between exchange and completion so lots of time for circumstances to change etc....

 

I know that offers being withdrawn after exchange are rare but 'we found some old debt that you didn't tell us about' would certainly be a valid reason. There again if it's not on my credit file they wouldn't find it, unless of course the DCA's do something to my file which is possible.

 

Did they not even question your payslips? That was a result, is it fairly obvious on the payslips?

[dx100uk]

There again if it's not on my credit file they wouldn't find it, unless of course the DCA's do something to my file which is possible.

 

 

not possible

[tuffet]

not possible

 

Hi dx,

 

Thanks for your advice on this.

I agree with what you are saying - After a default has dropped off the credit file it cannot be re-added but what if the DCA decides it wants more money then adds a CCJ. This will then show as a separate entry. If they have a copy of the CCA then surely there is nothing stopping them doing this?

 

F&F doesn't prevent court.

no matter what letters they/you write and sign.

 

 

the debts don't show

paying or not or F&F or not wont bring the debts back on the file

nor improve you file.

 

 

if they go for CCJ's then you defend it

should be easy an cash cowed debts.

and they cant get a charge without a CCJ first.

 

 

your call

 

Hi dx,

Can you explain what you mean by 'F&F' wont prevent court. Surely if you have a letter saying it's a full and final payment and wont be chased by them or anyone else in the future then they can't do this?

Also 2 of my very old debts (18 years) are already CCJs so this would make a charge much easier?

 

Thanks again

[dx100uk]

Hi dx,

 

Thanks for your advice on this.

I agree with what you are saying - After a default has dropped off the credit file it cannot be re-added

but what if the DCA decides it wants more money then adds a CCJ.

This will then show as a separate entry.

If they have a copy of the CCA then surely there is nothing stopping them doing this? -

 

 

the debt itself cant comeback. yes you'd have a CCJ for 6yrs in the public info section. but they'd need to win the court case first, and even then, you could do a tomlin/consent to avoid the CCJ, or even pay it in full before 28days.

 

Hi dx,

Can you explain what you mean by 'F&F' wont prevent court.

Surely if you have a letter saying it's a full and final payment and wont be chased by them or anyone else in the future then they can't do this?

Also 2 of my very old debts (18 years) are already CCJs so this would make a charge much easier?

 

Thanks again

 

 

an F&F is always a partial settlement.

thus the rest exists, its not worth it.

no matter what letter they send you.

 

 

dx