Hi, I don't expect any sympathy but any constructive advice would be really appreciated ;-)

Extreme personal circumstances caused me to default on a mortgage and a few other (smaller) debts in early 1994. Now my circumstances are different and we're just getting sorted and had started looking for a house to buy.

I dropped my guard too much this year and gave my details to the electoral role people at the door, bought a mobile phone and gave our details to a couple of potential lenders for a flat we wanted to buy and - hey presto - my previous mortgage lender popped up, asking for a £13K shortfall. There’s no link between our current address and my previous one – I’ve not told a soul about that for more than 6 years. Now I’m worried the other creditor will follow soon. I would like to repay, but not just now!

I understand that CCJs are automatically removed after 6 years (I have 1, maybe 2, but unpaid) and that some lenders don't chase (themselves) debts after 6 years. I guess that doesn't stop a 3rd party agency, who's bought the debt from them from chasing though. Also I understand that any debts aren't chased after 12 years, but I’ve 5.5 years to go and my wife had her heart set on buying a flat until this “little” lot blew up L

I’ve talked to a great sounding mortgage broker (even told him the truth!) and he says no problem getting a mortgage – it’s just whether I think it’s a good idea to go ahead……

I’m about to ask the credit agencies for a copy of my credit file, but feel very jumpy about doing this and giving them all my previous + current address. I don’t know the exact details of how much I owe and to who as I left the country for a couple of years after I was repossessed. I think there are upto 7 or 8 creditors, mostly for smallish amounts (<1K)

My main questions are: 1) do you know the mechanics of the obtaining your credit file process? Does the agency in question, for example, update your file before/after sending to say that you have requested it, and giving your address? (and thereby leaving it very clear to other creditors where you currently are)

2) when a new mortgage is taken, are the borrowers' credit files automatically updated with the address of the mortgaged property? (assuming there's no other credit lines applied for)

3) On the initial application form I just completed via Charcol online I seem to remember being asked for addresses I've lived at in the last 6 years. My repro & all problems were more than 6 years ago. Do I really need to give a new lender addresses I’ve was at more than 6 years ago (the repo) if they only ask for the last 6 years? The link here is what worries me. I need to know what’s on my credit file but fear the connection will be made by the agencies for previous and future lenders when I tell them all the addresses I’ve been at (and probably NOT telling them the address that was repossessed would be a waste of time as I’ve an exemplary record since then). BUT on the other hand without it I wouldn’t be able to satisfy my curiosity and inkling that a new lender maybe WOULDN’T make the connection between where I am now and where I was then….. but there again I’m probably kidding myself!

Any advice, opinion or anything constructive appreciated J

Many thanks

-- anon (sumregrets@yahoo.co.uk), November 29, 2000

Answers

Hi - sorry to hear about your misfortune I believe I have read your comments on Cal-ex and emailed your privately with this sites address. You say that your repo was over six years ago, depending on who the lender is some of them are claiming that they will not pursue debts over six years old - post who the lender is to the site, I'm sure that anybody else who has had the same lender will be able to help you. You say that they are advising you that the shortfall is 13k you could plead poverty and offer a much smaller sum (start off very very small) as a one of settlement that way they would be off your back once and for all. On new mortgage application forms it will usually ask if you have ever had a repossession if you answer no and are found out you could get done for mortgage fraud - a bit risky. If your wife wasn't party to the first mortgage then you could always take out the new mortgage in her name only. Some other factors to consider are if you had an MIG was it mis-sold to you, where you under the impression that it would protect you if your home was repossessed. Was your home undersold, does the statement of loss tally up. I look forward to hearing from you.

-- Jo (chrisbrad@zoom.co.uk), December 05, 2000.