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tmrt84 | 16:11 Mon 10th Oct 2005 | Business & Finance
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my partner and i are currently in the process of purchasing our first home, but when we got a copy of our credit reports my partners showed a default against him. As he has been consistently paying off the outstanding balance of the debt since he came into difficulties (due to losing his job), we did not think a default would have been applied.

A family member has offered to pay the full amount of the debt off for us, but I am now concerned that as it will be held on his record we will be unable to get a mortgage.
Apart from this we have ok credit, and have a 5% deposit.

If there is anybody who could give us some advice about what we can do, and if it will be possible to obtain a mortgage-and if so, who from?



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I worked for a short term in my Bank's Debt Recovery Dept.  This can be a real pain to get tidied up.  Suggest you contact Ctizens Advice Bureau - they should be able to help with clearing up errors or outdated credit reference postings.  Until that is done, the mortgage might be difficult to arrange.  Don't be discouraged though, a friend of mine also in the Bank had a problem with a Company supplying a carpet which she refused to accept/pay for, so they registered something on her credit history which she eventually managed to sort.
A number of mortgage companies will lend in these circumstances.  Try Kensington Mortgage Company or go through a broker who knows the ropes.  Usually end up paying as little more in interest rate but doesn't have to be too bad and gets your record staright after a while; assuming you keep up the payments :-)
If it was just a one off occurance you might be able to argue your case to a lender.  You should repay the debt and then obtain a letter from the company stating that the debt has been cleared.  You should also contact the credit report companies, equifax and experian to tell them that the debt has been cleared, you can send them a copy of the letter, although it may take a few yrs for the entry to be wiped from your record.  Then when you are ready to apply for a mortgage I would phone the mortgage lenders before applying to tell them about your situation and check whether it would affect your decision.  You should explain that the reason you had the default was due to your partner losing his job etc.  If you are now both in steady employment that will help your case.  Regarding lenders, I would give Standard Life Bank a shot, they are usually pretty good

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