Mortgage with default

[Jen221199]

Hello all,

I am just after any success stories really.

I am wanting/hoping to try and get a mortgage around August/September this year. I am currently saving and will have around £14k by then - looking for a house around £140-150k.

Only problem is I have two defaults on my Experian report with Provident (satsuma) from August 2018 both for less than £500 and are settled. I also have a default with Eon for £1k from Feb 2019 which only shows on Equifax - tried to dispute this as it was the date I moved out from a property and was never given chance to pay it off but Eon won’t have any of it, offered me a discount but my fault anyways and this is also settled.

I am a single parent, good secure job with income of £31k as well as maintenance etc roughly a further £4K with child benefit.

No other missed payments etc got a mobile phone, car finance and took out a Vanquis credit card last year with a £1k limit to improve my credit but I am still stuck in the poor section and according to Experian, it will be another year for me to reach the fair score.

Does anyone think a broker will be able to get me a mortgage? I have seen so many success stories from people with ccjs etc however when I go on my online banking with Halifax and click on apply for a loan (would never apply just like to see if it tells you if you would get accepted etc) it always says “you are unlikely to be accepted” therefore assuming I have no chance of a mortgage.

I would also love to try for the 5% deposit mortgage by possibly putting £10k so above 5% but less than 10% but keeping the rest for furnishing etc but I am not sure I would be accepted for this.

Currently living with my mum, moved in, in feb 2019 to clear all debts and save therefore completely debt free apart from phone, car finance and credit card which I use less than 25% and pay off in full each month.

I could stay longer and save more but with a 11 year old and now working from home full time, I really need my own space.

Any advice would be great.

Thank you

Predictable answer perhaps - but talk to a broker! Mortgage is not just credit history, but also affordability, a decent broker will be able to advise on whole of market and you can weigh up all the options:

FWIW, we used London & County and found them excellent.

I doubt you'd get the 5% due to your credit history. Im sure you could get a mortgage with someone maybe like Aldermore or Bluestone. Go on to the mortgage section on the money saving expert forum and you will get good advice from a broker on there.

A friend of mine has managed to get a mortgage after a default 4 years ago. However, they could only get an 85% LTV. This works ok for them as they already had enough saved for an15% deposit, and their mortgage payments will be about £120 a month less.

You need a pretty good credit history to get a 5% deposit mortgage. You’d be more likely to get a 10% deposit mortgage with your defaults. Talk to a broker and see what they say.

Remember to factor in paying for conveyancing fees and survey fees too. You’d need more like £20k if you need to put in 10% deposit, pay for fees and have some left over for furniture and an emergency fund for if boiler breaks for example.

Thanks for your replies, I will look into a broker in the next few months and see what they say. That is why I was hoping for the 5% to have the extra fees otherwise will need to continue saving into next year but doesn’t sound like that is going to be possible. I didn’t know about the money expert forum. Thanks for that, will have a look now

@Jen221199

Thanks for your replies, I will look into a broker in the next few months and see what they say. That is why I was hoping for the 5% to have the extra fees otherwise will need to continue saving into next year but doesn’t sound like that is going to be possible. I didn’t know about the money expert forum. Thanks for that, will have a look now

Just wondering how you got on? Any luck with your mortgage? I'm in a similar position

My husband has a 5 yr old default and we have just been offered a 95% mortgage with Barclays - we did use a broker though.

Yes it will likely be possible, but you won't have a full choice of lenders or possibly get the best interest rates. Talk to a broker (one that is independent and doesn't charge a fee)