I am in the process of applying for a mortgage. My husband has a default on his credit score (picture attached) . Unfortunately/ fortunately this was wrongful lending and it went through the financial ombudsman and he “won” but unfortunately it has still left a default on his record including the time it was in the hands of the ombudsman which was an extra 2 years. In hindsight we should have repaid it and then went through the ombudsman… but he/we didn’t and here we are.
We have left it in the hands of our broker but we are curious at what point the default will not be looked at.
I have heard it stays on the credit history for 6 years but mortgage lenders usually look back at 3 years.
The default date as stated on the credit report is 12/04/17….. so could this possibly mean it may be off his report done April 2023?
Should we hold off till April 2023 to apply for a mortgage?
We didn’t plan to purchase a property just yet but one has come up out the blue that ticked all our boxes. We have a £90k deposit and the house is approx £390k so I feel we have a good deposit but this default on his record I feel is going to cause an issue to borrow or if we do get offered the rates are going to be 7%.
it just feels with mortgage rates at an all time high and a default maybe now is not the time to buy and we should forget about the house for now and suck it up.
Any advise in reference to mortgage and defaults will be happily received.