Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Adverse mortgage rates and deposits! So upset ! :(

16 replies

Rosmah1511 · 28/11/2020 21:23

I am so so upset ! All my hard work and planing might be ruined :(

I've recently checked my credit file and I have a default which I didn't even know about ! Apparently they sent me a letter but I def did not receive it.

Anyway , I want to buy a house in May/ June.
Can anyone please share severe credit brokers/success stories ?

Also what kind of deposits and rates have people been able to get ?

Thank you

OP posts:
mountains76 · 29/11/2020 09:45

Hi there are specialist lenders who deal with people with poor credit history so all is not lit. Much depends on the nature of your default. What was it on and for how much etc?

Original poster
Rosmah1511 · 29/11/2020 10:28

@mountains76 thanks for replying.
It was on my next card. Total amount is £300, default payment was £14 I think.

OP posts:
user1471538283 · 29/11/2020 12:31

I think you will be fine. I had an outstanding amount on a catalogue years ago that I had absolutely no recollection of. I paid it, apologised and everything was fine. Its not as if it's a huge amount or a ccj

Whyareblokesonhere · 29/11/2020 12:37

use a broker and just be open, don't ignore it as a rejected application wil more likely have a bigger impact so its more important to get it right first time. a friend got a mortgage IN January with a 3 year old default for £3k on file, 15% deposit.

I think the age is a big factor, 3 years being a key milestone

LyingDogsLie1 · 29/11/2020 12:39

Did you resolve it? If not that’s the first thing you need to do.

Ringading7 · 29/11/2020 12:40

You need at least a 15% deposit right now; ideally 20%.

autumndream · 29/11/2020 12:50

Oh god don't worry about it! When we did our mortgage I had about 5 late payments on next they just asked me to explain and that was it.

williowrosenburg · 29/11/2020 12:58

Last time we mortgaged our mortgage advisor kept asking about a Halifax credit card.... we'd never had one and said as much. He said ok fine. Mortgage went through all fine.

A year or so later my husband did a credit check randomly.... it showed he had a Halifax credit card with a couple of hundred owed on it.....at this point we'd been together about 10 years and it was from before then! He hadn't paid anything on it, they hadn't tried to chase him for the money. Was really bizarre!

So in short I wouldn't worry about £14 late payment that you can probably explain. Just go via a decent mortgage broker.

anguauberwaldironfoundersson · 29/11/2020 13:02

After a breakup of an abusive marriage I had an awful credit rating (usual story of my an abuser being financially abusive and me leaving with nothing and carrying the can)

A couple of years later I was buying with my now DH and struggling. London and Country worked their arses off to get us a great deal at a reasonable rate. We've used them since and I can't rate them enough.

They're free to use too.

letsnotscaretheneighbours · 29/11/2020 13:03

Speak to a broker, do not go direct to lender. Brokers are worth their weight in gold, but trust me its not a huge issue.

rottiemum88 · 29/11/2020 13:20

Agree with others you should speak to a broker. However, I never quite understand this. You might or might not have received the default letter, but surely you knew you owed £300 to Next, yes? These kinds of defaults are so easily avoided.

Original poster
Rosmah1511 · 29/11/2020 14:13

Thank you all so much for you replies ❤️

The problem I think is that when I apply for a mortgage the default will only be a year old .

Anyone have any idea of rates? I could live with 4% but anything more and I couldn't afford it.

OP posts:
letsnotscaretheneighbours · 29/11/2020 14:29

@Rosmah1511 not sure on rates, but your broker will give you a good idea (it also depends on ltv)

Whyareblokesonhere · 29/11/2020 20:01

is your financial situation likely to improve - 4% isnt that high considering all that is going on in the world right now, cant see us getting back to 15% interest rates but more than 4% cant be ruled out by anyone - especially not for anyone with less than perfect credit. Whilst it is always desirable to buy, you dont want to end up with interest rates rising, making it unaffordable and a drop in house value

Not saying it will happen but it isn't out of the question right now

SchrodingersImmigrant · 29/11/2020 23:06

Wpuld the lender be willing to take it off since it's so small default if you pay full amount now? It's worth asking. I know someone who had default on because company got billing address wrong so he never got the bill. It was 50. He had it removed as afr as i know

sparklewater · 30/11/2020 11:02

I had a CCJ I didn't know about but my mortgage supplier (HSBC) spoke to me about it and just advised the underwriters that I was no/low risk anyway. It went through no problem (other than my heart rate!)

It was for a parking fine that I had been disputing and eventually agreed to pay it in installments. They stopped taking it after 2 months and gave me a CCJ instead, but I had no clue. One missed payment is very unlikely to have a huge affect on your mortgage deal. Esp if you have a high ltv etc

New posts on this thread. Refresh page