Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Mortgage with defaults Can anyone help?

2 replies

Blueelephant2020 · 19/04/2020 21:53

Hi everyone I’m just looking for a little bit of advice and wondering if people thought it would be worth me speaking with a mortgage advisor post COVID-19. Or if people think I have no chance of being accepted for another mortgage so I would be wasting my time.

I started defaulting on my mortgage in April 2018 when I realised I couldn’t afford the mortgage payments I put it straight on the market but this took me a few months to find a buyer and then a further few months to complete the sale. Sale of the house completed in October 2018 and I moved in with my mum. I have since been living with my mum and saving money I have paid off all debts (Car, credit cards etc) and I have no further defaults on any accounts since October 2018. I have 1 credit card that I got to help me build my credit score up again, that I use to put small purchases on and I pay off on time and in full each month.

A little background: prior to April 2018 I had never defaulted on my mortgage payments which I held for 5 years however in March 2018 I went on maternity leave and I was only eligible for SMP. Myself and DS father had agreed that I would pay the mortgage as it was my house which I bought before I had met him and he would pay the other household bills anyway 10 days after DS birth I had found out he was having an affair, he moved out and all financial arrangements between us fell apart. Stupidly I had no savings as a buffer to help me through. I literally had £560 a month to live on from SMP and as soon as I realised I wouldn’t be able to afford the mortgage I put my house on the market.

I stupidly put my head in the sand when it all happened and ignored letters etc from the mortgage company which I know was Very silly of me, I just couldn’t see a way through the mess!

Does anyone know if I would likely be accepted for another mortgage given the past defaults? Any advice is greatly appreciated!

OP posts:
Livelovebehappy · 19/04/2020 22:22

I would say you should be fine. But definitely use a mortgage broker such as L&C, Trussel etc. I had a default on a credit card, paid off though, and a couple of months after it was settled I applied for a mortgage. The broker knew which companies would accept a mortgage application and I managed to get a mortgage offer through. Good luck!

Gemma2019 · 19/04/2020 23:04

You will struggle to get a mortgage only 2 years on from defaults, unless you have a really big deposit. The defaults stay on your credit file for 6 years and most lenders do ask about the past 3 years minimum. It's certainly worth asking a broker but you do need to build up your deposit as you will likely be offered lower income multiples and higher rates.

New posts on this thread. Refresh page