Notice of circumstances on credit file

[frankiediamonds]

Hi,

 

Not been on here for a while, but was looking for some advice as to placing a notice of circumstances on my credit file.

 

I plan to purchase a house next year with a hefty deposit, and for the first time, I've been accepted for very low APR credit with a 0% interest deal. My credit rating finally is improving!

 

Long story short, like a lot of us, I've been working on improving my credit rating for some time. A few years ago I went into default with two of my creditors. I actually had four creditors at the time, but when explaining the circumstances, two were most understanding and froze my account, two were not! I would add that both of these defaults were paid off in full just over a year ago.

 

As stated at the beginning of my post, I am now looking to explain the circumstances of the defaults on my credit file. I understand that I should have the notice removed once my defaults drop off my credit report (in four and bit years!), and I understand that they will only be seen by a physical person underwriting any future credit. I have compiled a letter but I'm struggling with the 200 word 'notice'. So this is what I have so far:

 

At the time of the default my grandmother had been murdered, and both my partner and I (now husband and wife) had to have a lot of unscheduled time off work to attend family liaison sessions, family therapy and press conferences. Under the extreme, and incredibly rare circumstances, I fell behind with my payments.

 

So my questions are:

 

1. Is this relevant to any underwriter? Obviously it was relevant to me, my husband is self employed, and therefore we were really struggling with meeting our bills etc. at that time.

2. Is it worth adding a notice of circumstances to your credit files?

3. Does anyone have any better ideas?

 

Sincere thanks, to anyone that takes the time to reply

Frankie

[obiter dictum]

To be honest putting any sort of correction, statement on your credit file about financial issues will not amake one iota of difference. They credit records are a statement of fact. That is the same as paying off any CCJ or default.

 

You will be declined unless you take a creditor with a very high deposit or high APR

 

And i am talking from personal experience

[frankiediamonds]

To be honest putting any sort of correction, statement on your credit file about financial issues will not amake one iota of difference. They credit records are a statement of fact. That is the same as paying off any CCJ or default.

 

You will be declined unless you take a creditor with a very high deposit or high APR

 

And i am talking from personal experience

 

Bugger, I was hoping it would give me my credit rating that extra push. We have spoken to an independent mortgage adviser (free consultation) and he was confident that he'd be able to find us something with a 15% deposit, which based on how much we've managed to save in the last year, I'm hoping we will have next year. He did state it would be a slightly higher rate, but didn't go into detail in the free session. I was hoping we'd be able boost our credit ratings with a note. God loves a trier!

 

When you say you talk from personal experience, did you manage to secure a mortgage with defaults on your account? If yes, at what inflated rate if you don't mind me prying?

Edited August 19, 2016 by frankiediamonds

[obiter dictum]

The average i was getting was 1.5% above the base rate. That might not sound much but on a typical mortgage massive monthly extra payments. After a year or two some lenders lenders offer you to switch to a base rate mortgage. It has been a few years since my application and i now know mortgage companies are very strict since the sub prime scandel with accepting people. You are doing the right thing using a broker.

[frankiediamonds]

Yes, I actually work as paralegal in a conveyancing department and remember a lot of cases being pulled during the scandal.

 

Thanks very much for the advice and help. I know each case is based on its individual merits, so it could be much more, but I feel much better knowing that it could be a little as 1.5% above base rate (although I understand it will push mortgage repayments up a bit), as using a mortgage calculator that would still be feasible and in our budget.

 

I guess we'll plod on saving, hit the 15% and then go back to our mortgage broker. I don't think I'll bother with the notice of circumstances.. doesn't sound like it's worth the effort of even writing the letter.

[dx100uk]

who and what are the defaults?

 

 

dx

[frankiediamonds]

Both were in default without me paying anything at all for four months.

 

One was Capital One £630, which was paid off in three consecutive monthly installments after the four months, meaning I have a record of seven 'D's showing for that account on my credit report.

 

One was a loan I had at the time with Ocean Finance - £1100 was the default amount. I paid the default amount off in smaller installments and it was paid full twelve months after the four months of paying nothing...so sixteen 'D's show under that one.

 

Capital One were so unhelpful at the time. Obviously it was a life changing and very devastating event. I'd just moved address about a month before the incident and Capital One, after me explaining the circumstances of my non payment for four months, felt it necessary to add a note to my file that I 'omitted' to tell them about a change of address until five months after I moved, when in fact I had written a letter at the time of the change of address (and sent them a copy at the time of the note appearing on my file as proof!). Wouldn't touch them with a barge pole ever again. I know they are a credit business and they don't really care..but jeez.

 

Both were 'bad credit' type accounts, although I didn't really have any bad credit beforehand, I had no credit..which had subsequently become bad, due to the defaults.

 

For mortgage applying purposes. I am completely debt free now and for the last 3 months, since I obtained it, I make a small purchase a month on a Tesco 6 month 0% interest on purchases credit card, then pay it back in full. I managed to get 5.9% APR on that card when the 0% is up. Which is obviously at a far better rate than anything I would have got in the past. This gives me a glimmer of hope that I might be worthy of lending mortgage finance to??

[dx100uk]

So they both have defaulted dates registered in the summary

Ignore the cal section

[maroondevo52]

A few years ago I went into default with two of my creditors.

 

What are the default dates ?

[frankiediamonds]

Capital One defaulted on 10/03/2014 and was paid off on 31/10/2014. Ocean was on 24/03/2014, settled 31/07/2015.

[dx100uk]

so both there till 03/18

shame you wasted money in paying them off.

 

 

dx

[frankiediamonds]

Would they not be on there until 2020, 6 years from the date of default?

 

Poster Obiter Dictum is of the belief that putting a notice of circumstances on there wont make a blind bit of difference... is there anything else I can do to improve the damage done? In addition to what I'm doing now, which is using my 'better' credit card sensibly and paying the balance off in full each month.

[dx100uk]

sri was on a small screen 2020 yes

 

 

you've lost the only weapon you had by blindly paying them off

you could have used that as a weapon

want the money paid off now in bulk..then remove the default.

else its £1PCM till I die.

 

 

notices of waffle come off after 12mts normally anyway

and are not seen by mortgage providers anyway

 

 

only the summary lines.

 

 

showing running and managed credit is a bit of a myth too.

 

 

some of these mortgage advisors are only in it for one thing..the commission from the seller to them for sending them too you.

 

 

there was a very programme about them filmed under cover on tv not so long back.

 

 

 

 

you have ofcourse checked the defaults are correct?

i'e were registered on the third missed payments etc etc

neither cap1

but certainly ocean

I would never ever trust with a barge pole let alone my credit file.

 

 

dx