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Mortgage with default

(14 Posts)
Bashitcrazy Tue 22-Nov-16 21:09:56

Wondering if anyone on here has experience with getting a mortgage with a default?
We should have £14,000 by the time we are ready to apply and will be looking for a house around the £165,000 region.
I have a default which was settled in oct 2012 for £1200.
We are so desperate to get out of our flat and into our own place it's unbelievable sad

ilovemilton Sat 26-Nov-16 23:04:28

Check your credit rating on experian or similar and see what the report says about you. This will give you an idea what the mortgage lenders opinion will be.

Lilmisskittykat Sat 26-Nov-16 23:36:51

Experience is a great start to check your credit rating, I also believe upping your deposit from 5% to 10% can make a difference too as its all about risk and cost to the bank if you default. So a slightly bigger deposit of 16.5k might help

Bashitcrazy Sun 27-Nov-16 07:48:03

Thank you - the default is showing on equifax, but not experian which is werid.
10% should be doable, but it will mean a few more months here 😩Which is annoying and we have seen so many houses on the market at the moment that would be perfect.
I'm just so annoyed with myself that I have put us in this position in the first place

Gunpowder Sun 27-Nov-16 07:49:40

There are some lenders who only use Experian to credit score rather than Equifax. If you use a good broker they will advise. Good luck!

user1471950254 Sun 27-Nov-16 08:04:43

It depends on the lender's criteria. The company i work for uses all credit ref agencies for searches due to the issue you've mentioned. We also would not lend to anyone with a settled default as high as that.

I would suggest you approach a broker as opposed to lenders directly with your circumstances

pullingmyhairout1 Sun 27-Nov-16 08:07:08

I know of several lenders that would consider you but you will definitely need a 10% deposit.

beldaran Sun 27-Nov-16 09:10:04

We have 3 defaults dating back to 2013 and been successful with applying for a mortgage.

We've gone through a broker who specialises in that area and he has been great. We explained our circumstances (we've also been able to pay off all of our debt through the sale of our previous home which has helped).

Granted we will be paying a slightly higher interest rate but we've fixed for 2 years and when it comes to look at remortgage we will be able to access more high street areas due to the defaults being close to falling off.

Whilst credit scores etc seem important our broker and lender haven't really been bothered by the fact that our scores are low. They were more interested in whether we met our commitments each month, we had no more outstanding debts etc and we were living within our means. And if you go over to the mortgage and credit score forums on moneysavingexpert you will see that a lot of people are saying the same.

It is possible, we found that being completely honest and upfront was the way to go.

Good luck!

Bashitcrazy Sun 27-Nov-16 11:10:37

Beldaran- that sounds really positive. What kind of deposit did you need to put down??

beldaran Sun 27-Nov-16 11:54:00

Well, we were in a fortunate position that we had a large amount remaining after the sale of our previous home (long story but living in a property owned by parents currently so no rent to pay), but if we didn't have this it would all depend on what we needed to borrow.

I think our broker said 10% for £100k, 15% for £125k (which is the max we can borrow). I know it's a large deposit amount but they are taking a risk on you.

We were able to show that since our defaults we have not had any other bad credit etc, no late payments and so on.

Just be wary of who you go through, the first broker we approached whilst their commission would be paid by the mortgage company, they wanted to charge us almost £3k for a "packaging" fee....whilst the one we are with now is a flat fee of £1500.

They also didn't give us a decision in principle without taking an awful lot of information first, we almost had to do an application first before they approached the lender. So we knew that we wouldn't really have a problem when the actual application went in.

I've been able to ring or email 7 days a week and someone has always been able to answer a query no matter how stupid it sounded to me.

Bashitcrazy Sun 27-Nov-16 14:00:07

Oh my goodness 😱 Now I am worrying!! I think I will speak to a broker and see what they say

Ghostonthedancefloor Mon 28-Nov-16 11:16:26

beldaran may I ask who that is with? I am 3 weeks into waiting on just the DIP with ours and am getting frustrated. This is with an independent broker, L&C gave us a choice of one (which we couldn't end up going with due to the nature of the property) and we haven't got any defaults, just a few missed/late payments from over 2 years ago.

pullingmyhairout could you tell us more?

pullingmyhairout1 Mon 28-Nov-16 11:46:32

Ghostonthedancefloor I can but every individuals circumstances are different and have an effect on the lender I would use and the advice I would give. If you want to drop me a line privately I'll happily go into more details, or if generic ask away.

beldaran Mon 28-Nov-16 15:38:12

I'll pm you the company we used, don't want it to look,like I'm advertising for them lol!.

Also, just wanted to link this thread from MSE, to perhaps give you a few more examples that it is possible!

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