Does clearing of 5 year ICB bad credit record make any difference?

T

Tryingtofixit

Registered User
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Hi,

Have a bad credit history, due to business failure spilling into personal finance. This Sept , last debt reaches 5 year stage, so have been waiting for this day! :)

On seeking advice on a potential mortgage application with a broker, was told that that fact actually makes no difference as due to full disclosure of any previous loan/credit defaults, all 'bad credit' is taken into account.

Now, have strong income and would be looking for a small mortgage comfortably within my repayment capacity.

So have I been waiting all these years in a completely mistaken belief? That actually getting to a clear ICB report ( or modern equivalent ) doesn't really make any odds at all?

Would appreciate any insight. Many thanks
 
The banks ask applicants to make a disclosure on the application form similar to the following: "Have you ever been made bankrupt, made any arrangements with creditors, had any court judgements for debt made against you or been in arrears with any existing or previous loan?"

However, even if you made such a disclosure, as your credit history has been clear for more than 5 years, I wouldn't see any difficulties whatsoever with getting approval. It's frankly shocking to hear that a broker suggested otherwise. I can only imagine that he/she doesn't arrange a lot of mortgages (maybe more involved in life assurance, pensions & investments), or that he/she is just very badly informed. You should have nothing to worry about.

Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
 
Hi @Dave_Curry_IMC
Would the above comments stand in a scenario where a borrower completed defaulted on unsecured personal debt? I.e. not that they were simply in arrears, but they simply didn't pay?
 
RedOnion said:
Hi @Dave_Curry_IMC
Would the above comments stand in a scenario where a borrower completed defaulted on unsecured personal debt? I.e. not that they were simply in arrears, but they simply didn't pay?
Click to expand...
In that instance, the debt would remain on the credit report until it was cleared or written off. Then it would remain for 5 years from the date of closure.
 
Hi @Dave_Curry_IMC
That is the OPs scenario from a previous post. He didn't repay, and his creditors either wrote off or sold his debts. So the 5 years is since it was written off, not since he cleared arrears.
So, would banks turn a blind eye if such a history were disclosed?
 
Hi Guys,

Many thanks for your engagement on the post. Really appreciated.

Red Onion, you are correct in your assumption that a couple of debts where not paid. ( Majority were ) . Was simply unable to offer anything at height of issues, and afterwards on seeking financial advice I was advised to not approach lenders who had not contacted me in recent times as would re-start the process. Rightly or wrongly, this is the advice I followed. Total sums did not add up to a huge amount, however I know that is irrelevant. Strangely one was a small credit card debt, from my own bank, that they never pursued despite always having my up to date details.

Can add any more detail required to make original post more transparent if need be!

Thanks Dave.
Thanks Red Onion.
 
RedOnion said:
Hi @Dave_Curry_IMC
That is the OPs scenario from a previous post. He didn't repay, and his creditors either wrote off or sold his debts. So the 5 years is since it was written off, not since he cleared arrears.
So, would banks turn a blind eye if such a history were disclosed?
Click to expand...
Most would overlook that, as long as the credit agreement came to an end (whether cleared or some/all written off). He probably has a bad internal grade with the bank that lost money, which would likely mean that he would be declined by that bank, but other than that I don't see any issue.
 
Thanks @Dave_Curry_IMC

Just asked in case there was something that OP hadn't mentioned that would change you shock at a fellow brokers advice :)

@Tryingtofixit
Mandatory enquiry against CCR will be in place by end September. It might be worth checking if those debts were recorded there. Although it sounds promising from Dave that it shouldn't impact. I am aware of a case with similar circumstances where a customer got a mortgage after paying the outstanding debt (it was with same bank).
 
Much appreciated Gents, really very helpful. Yep, come October will be looking to see what CCR shows up. If I learn anything on that or in response to mortgage application that might be useful to other will post a follow-up. Thanks again.
 
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