www.iva.co.uk

Hi received my completion certificate in the post yesterday. So thrilled it has come to an end. Unfortunately whilst I was in the IVA my ex was not paying the full mortgage on our joined house therefore I have got a default note on my credit file. I managed to force him to sell the house and both mortgages were paid in full. One of the companies have classed it as a default and it states £15000 default. Should this account be closed now because I have paid it off? I know the default will stay on there but wasn't sure. Also the default time decreases with age. Does it go from the first date you defaulted or every month there was a default? Thanks.

Great news on getting that all important piece of paper!

You could write to the data controller for the creditor concerned explaining that the mortgage was paid in full and enclose a copy of your completion and tell them to remove the default.

Thanks Kallis. The default wasn't Inc in the IVA cos it was my mortgage so I don't think they would take it off.

They should take it back to when the mortgage was paid off I would think - Foggy may be on later to assist further.

Mortgage defaults have a longer life span than IVA defaults, but the same principle applies in that the clock counts down from when the default was registered --- the mention every month is merely a report on the current state, not a new default date. Also the same principle applies in that the default should be marked settled as of when you made the settlement, so write to the data controller of your lenders and request that this is done.

In the meantime you could get a Notice of Correction placed on file, basically explaining the circumstances, so prospective lenders in the future get the full picture. You have to remember to get this removed when the default clears from your file though -- it doesn't come off automatically.

The default won't be removed in connection with your IVA, as you say, because it was relating to your mortgage and it's a horrible situation when you have a joint mortgage with an ex-partner who does not pay because of the 'joint and several liability rules'. Time will be the healer on this one but mortgage lenders also dislike arrears on a previous mortgage too. You could try the Notice of Correction as Foggy says, although in reality I'm afraid lenders very rarely (if ever) take much notice.

Thanks Shaun. Will this hinder any chances of me getting a mortgage in the future?

I have to be honest in saying it certainly isn't ideal, particularly given your previous IVA - lenders continue to 'cherry pick' cases in the current climate. That said, the market is constantly evolving and new products/lenders are slowly returning to the market. So, given a little time and depending on your other circumstances (your income, the amount of deposit etc. you have available) it may be possible. Certainly there is no need to give up hope. As and when you are ready I'll be happy to give you some more individual guidance.

Thanks Shaun. We have just moved into a rented house which is bigger and hoping to stay here for a couple of years so hopefully things will be better in the next few years and the default will drop off so I have got a better chance of buying in the future.

Good luck yummymummy - not what you needed but the next two years will hopefully change things and when the default is removed you will be in a better position to get a new mortgage.

Fantastic, all the best for the future and congratulations on completing your IVA!