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Credit Score Shock !!!!

I'll try to keep this as short as possible.... I split from ex wife and unfortunatly couldn't afford at the time to pay the £5k redemption fee to remove my name from the mortgage. I had no financial commitment to the property and started to rent a flat. All was going well until she decided to sell the house. Without any notice to myself, she had defaulted on two payments before the compleation of the sale. Now I have inherited a bad credit score which is preventing myself from getting a mortgage. Is there anything I can do to resolve this. Help PLEASE.

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The first thing to do is to get the Rating Agencies to add a note to your record to the effect that the defaults were not caused by you. They cannot remove the defaultd because you were still a party to the mortgage which was defaulted. Has the debt now been settled? If so, the defaults will clear 6 years after they occurred. However, they will decrease in value as time goes on provided that you do not miss or pay late any future amounts due. Do you have a credit card? If so, use even if only for a small amount each month, preferably settling it in full each month. Always pay at least the minimum amount by its due date. Set up a Direct Debit to get that done for you so you are never late. Most providers will allow a choice of Direct Debits from full payment, minimum payment or a fixed amount. That would help your score to rise faster. Mike



Hi ‘In BITS’. ‘MikeGG1’ has hit the nail on the head with the 'Notice of Correction' approach, as I look at Credit Reports every day for my employer and it is obligatory and regulatory, to have to take heed of the information outlined. Were you to state the facts as noted - for which your ex-wife could similarly place her side of the scenario on the credit history too - then anyone with a legitimate reason for reading your report will recognise what had occurred. It cannot be ignored that a Default is evident for the reasons you note, however, I believe that from the way you've outlined your question, you have sighted a Credit Report recently and thus seen how the information is outlined - '0' when payments are met on time through to '6', for the number of payments missed or not covered in time, before a 'D' is applied to reflect a Default. The big 'BUT', is after the default it should now show 'S', as the debt has been Satisfied and as the months go on, the report will continue to reflect how long ago that debt was satisfied, so in line with Mike's comments, prudent use of your other credit facilities, with diligent budgetary management for bill payments, will re-build your credit rating. Yes this will take time, but you need to similarly maintain a review of your credit file, say every six months, to ensure it improves and when approaching the mortgage lender, come prepared with the details of the default, showing your open honest hand at the outset and even an explanation from your Solicitor (if you had one at the time and made a noise to your ex-wife about the occurrence which was documented), so that the Underwriter can take that into consideration. My speciality is in customers with a deteriorating financial trend or higher risk and this is how I manage the assessment when I underwrite debt, whether it be straight-forward overdrafts or loans or more detailed secured debt, such as mortgages. Ensure you have dialogue with the mortgage company, or alternatively, a damn good mortgage broker who is grounded in that area and has connections with mortgage companies to be able to express your position. It may require you to have a 'painful' rate for a couple of years, but once you've built up trust and good repayment track record in your sole capacity, this will create a firm foundation for you. All the best.