Any mortgage brokers here?

[EnglishGirlApproximately]

I'm just looking for advice as I'm feeling really fed up about my potential for buying a house. For context dp & I lived overseas and couldn't afford to buy when we returned home so have been renting for 9 years. We've finally managed to save 5% for a mortgage deposit (I know 10% would be better) and started to look at our options. I ran a credit report last month and found a default which I had no idea about from 2016, for a debt from before we lived overseas. I had no idea about this and its only for £120 so have paid it straight away, but I now have a default on my credit record. I'm guessing it's been somehow missed by me as we've moved house so much while renting.
DP had a payday loan a few years ago which was paid in full but we were relying on my good record to get a mortgage.

Is there any point in even applying for a mortgage now? This is the last year we can realistically buy so I'm feeling pretty low that a small debt could have an impact. Our affordability rating is great, we want to borrow £100k less than the calculator suggest we could on our income, and can show that we are currently able to save around £1200 each month and still afford bills, holidays, cars etc.
Is it even worth trying?

Underwriter here- there are loads of lenders who would lend to you, and depending on your score you may even get mainstream pricing.

Yes of course it is. Sorry I'm not a mortgage broker but I've taken out enough mortgages in my time. Why do you think you won't be able to get one? If one bank says no, go to another one. No problem

Thanks both. The last time I bought a house in the UK it cost me £32k and in the days of 100% mortgages and everything I read tell me how the banks have tightened up and are low risk. I guess I'm just assuming that at least one of us needs a good credit record. My score is now saying fair and DP is good, none was excellent until this old debt popped up last month. Do lenders go on more than credit score? Will they look at the details and see that its paid and a genuine error?

That should say mine was excellent

I think it’s actually a really good time to get a mortgage.

I’m a single parent, on only £20k a year, I just bought my ex out of the house and got a mortgage from Natwest for £175k as they took tax credits and maintenance into account.

There are lenders who will lend with one default, you need a good mortgage broker.

Luke saint at mortgage thoughts is good.

So you'd go down the route of a broker rather than apply directly? I've seen L&C but not sure what they're like. This does sound promising though. Scabby we're looking to borrow £180k on a joint income of £78k so that sounds promising. We do have a few bits of debt like car finance and a credit card but all are up to date without any missed payments and easily affordable for us.

You won't have a problem, never fear

You're really helping I was feeling really low when I saw the default. So fed up of renting really want a house of my own.

I honestly think you will be absolutely fine on that salary and the amount you wish to borrow is easily affordable. I would use a broker and have heard l&c are good too.

Good luck 😊

Mortgage broker here.

Most defaults are ignored after 3 yrs.
Most lenders also a tolerance of £500 before it causes a problem.

Happy to help if you want further info.

Been a broker 18 yrs x

Thanks so much everyone it's really helped. I'll go down the broker route. scabby I've just looked at mortgage thoughts and like the look of them thanks for the recommendation.

justtrying thank you. So if the default was in file in 2016 but I only paid it when I found out about it last month would that be a problem? As it's a low amount and paid as soon as I knew would that be taken into account?

We have quite a shit credit record. We only really sorted ourselves out 4 years ago and we were offered a 95% mortgage with a mainstream lender.

I'm not a broker so very happy to be corrected, but the impression I got throughout the application process was that they were more interested in our affordability. They asked a lot of questions about our bills, childcare etc.

Also our joint income is less than yours and we were offered up to £210k.

outcome i hope you're right as we look a good bet on affordability and can show that our finances are under control.

Hi English,

Sorry should have been clearer, 3 yrs from the date of registration, not the date of settlement.

As it is a low amount it's likely to have been within tolerance anyway.

What was it for?

It was a payment on a credit card that I thought I'd paid in full, we moved house very shortly after and looks like I'd miscalculated that interest would be due. As I thought it was paid I didn't chai the address on the account so it didn't catch up with me until now and a company called Lowell's have bought the debt.

I have just used L&C, completed yesterday in fact. Highly recommend them, I had several complicating factors and they got me a great 5 year fixed deal when I didn't even think I would get a mortgage full stop.

bisforbet that's great news congratulations! I have a lot more hope now

Keep us updated 😊

In exactly the same position as you! I had a default on my credit history, and we failed a credit check when we applied for a mortgage. I'd settled the account years ago, but it was still registered as a default. I rang the credit card company, who removed the default off my file, my score shot up almost immediately, and we passed the check. Good luck.

I had a default for a lot more than that from 2016. I paid it off, but then had to wait a couple of months to allow it to show on my credit file, then had no problem getting a mortgage through a broker. We too had been renting for a few years. Good luck, i’m Sure you will be fine.

Hi @justtryingtogeton I’m about to apply for my first mortgage and have 3 payday loans from 2 years ago - can you tell me is this likely to cause problems please