• Aug
    25

    Your Credit Report

    Your Credit report is important, but it is not the only aspect that makes up a loan application. Indeed there is an increaing interest on the part of lenders about both your current cashflow and your asset and debt balance. This is especially so during housing downturns, which is arguably something which may be upon the UK currently and for some time to come. Ironicaaly lenders have caused this by way of tightening lending policy which makes your credit report and loan application form together both important things to get right. The Complete UK Credit Repair Guide works by providing effective ways to improve both. Visit http://www.creditsecrets.co.uk for more.

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  • Aug
    17

    UK Credit Search Info

    UK lenders look at a UK Credit Search to find out more information about a persons credit history in regards to how many times they have applied for credit. It may seem unfair to have this information on file, but it is an important part of the picture of your creditworthiness, even if a UK credit search doesnt lead to a loan.

    In the UK a lender can make a number of deductions about this information but ultimately it will factor as a small part of the scoring that goes towards a final adjudication.

    For more, please view our UK Credit Search Blog and also to learn about how a UK Credit Search can affect your credit report be sure to visit The Complete UK Credit Repair Guide

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  • Aug
    10

    IVA stands for Individual Voluntary Arrangement and this is a legal, formal arrangement by which you can pay back debts, and in the process sometimes shed some of the debt too. IVA’s stand somewhere between administration orders and bankruptcy. The reason they exist is to allow people with more than £15,000 in unsecured debt to address their debt issues without going bankrupt.

    There are a number of advantages but the main one is that you don’t suffer an actual bankruptcy, whereas you may well do under the same circumstances if there was no IVA in place. This will help with issues of self esteem going forward and is less of a serious personal and financial issue. IVA’s are also not publicly announced and this can be a major factor in deciding to go forward with an IVA as opposed to a straight bankruptcy. Other advantages include: the ability to keep many of your assets (an agreement regarding assets is usually in your favour in return for you making monthly payments going forward), the ability to shed some of the debt (often IVA’s will allow you to only part pay debts depending on your circumstances), the ability to keep your home and/or equity in it (again decisions about your assets are more lenient than bankruptcy), and .. there are less restrictions than a bankruptcy (eg you can continue to trade in business etc).

    On the downside, IVA’s usually mean you will pay more of your debts than you would in bankruptcy (even if not 100%), the IVA will be recorded on your credit file, you will be restricted from taking out new credit during the period of the IVA, administering an IVA is quite expensive (more than an administration order for example), and the IVA must be adhered to otherwise your creditors can still make you bankrupt. If you can come to an informal agreement with each of your creditors then it would be wise to do this prior to considering either an IVA, a bankruptcy or an Administration Order.

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  • Aug
    10

    Mortgage shortfalls are classed as speciality debt. Under the Limitations Act 1980, it is one of the few debts that can remain legally collectable after 6 years of no contact. The time is actually set to 12 years. So whereas other lenders have no right to chase you for old debts after 6 years of no contact, a mortgage provider could chase you for up to 12 years for a mortgage shortfall debt.

    There is an inherent problem with this law - and this problem was recently tested. The quandary presents itself in cases where a counter claim ensues. For example if it was 10 years after the repossession, and you get a summons for mortgage shortfall repayment, and wish to counterclaim, then your situation is impossible.

    This is because all debts other than mortgage shortfall debt cannot be legally collectable after 6 years, and so your counterclaim would not legally be able to go ahead as 10 years would have passed. The case would be an impossible one because under human rights laws you have the right to appeal and counterclaim, yet under the limitation act, debts that you claim from the lender (eg if the house was undersold etc), cannot be claimed after 6 years! In the test case the proceeding were thrown out of court!

    Safe to say, it is very rare for building societies to chase speciality debt after 6 years, and in any case when repossessions and mortgage shortfalls occur en-mass you may find that they do not chase you at all.

    The best way to proceed if a debt ensues that is large and that you feel would be impossible to pay back is to test the waters and see if any action that is threatened in regard to the debt comes to pass.

    Even if it does you could argue at court that either you cannot pay, or that the house was sold incorrectly, or a whole host of other possibilities that may lead to the debt being written off or reduced by the court.

    You could even go bankrupt and thus the debt would more or less be written off if you have no other assets. Because bankruptcy is a scenario so widespread in property crashes, it forms the backdrop as to why mortgage providers do not chase these debts as hard you might think!

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  • Aug
    7

    When it comes to credit repair, gaining information about credit scoring and all of the behind the scenes systems employed by lenders is key.Yet, most people are in debt and so credit remains an important part of every day life. Go to any Citizens advice bureau or debt counselor in order to try to rectify your debt situation and you will likely get the standard fare - a depressing form requesting you to list your monthly outgoings against your income. It is a debilitating exercise for many, especially carefree spenders. Its outcome can be useful but acting on the information is usually not easy.

    The UK is notoriously expensive. Rip-off Britain has a certain ring to it. Necessities cost, and cost dearly in the UK. In fact, while British people earn considerably more than their U.S. counterparts, the cost of living in the UK is so high that even well paid earners struggle to make ends meet. Much of these high prices are due to stealth taxation, Council tax, VAT and other direct and indirect taxation adds to the exceptionally high level of personal living expenses. Even the cost of general goods in the UK is set high because companies know that they can charge more.

    Income is also muted (or pillaged!) by taxation. By the time many receive their net pay and deduct basic living expenses there is precious little left over. Hard work does not seem to be benefiting many. A loan is easy to gain and provides the kind of money that a hard-working British individual would expect to have, but sadly does not. Loans are often sold by loan companies exactly as such. Maintaing a good credit rating is absolutley vital. The Complete UK Creidt Repair Guide was created to ensure that you can not only maintain a good credit standing but repair bad credit.

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