Unsettled defaults over six years old broccoli_greens

#1
We want to buy our first house with a 25% deposit and mortgage of about 2.75x income. We have lots of room in the budget for interest rate increases to 10-12% so affordability is OK. Strong credit reports too for the past six years with no missed payments. BUT, before that I had defaults that remain unsettled. Some have reached the six year Limitations Act date, others not. All have dropped off my credit file.



Looking at an application form, I see this:






Have you ever been in arrears, defaulted on payments, or involved in court proceedings connected with debts or financial agreements with other lenders, including CCJs or voluntary arrangements?


That's broad enough to need a "yes", but I'm not sure what it means for our chances. Is this a common question now, asking about history beyond the range of a credit reference?



Do I need to reach settlements with the old creditors (satisfying those defaults) before applying for a mortgage?



Will the answer to that question be different after we pass the statue-barred dates for the remaining debts (some time next year)?

#2
You have to answer the question as it is asked. Im not trying to be pedantic but it is far from vague, I would say it is very specific.



Lenders have different questions so there are lenders who may not want to know about anything over 6 years old, but that question in your shoes I would answer as yes.

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