Help to buy with small default

carameline · 20 April 2014 at 6:18PM

Does anybody know if we would be accepted for the help to buy mortgage guarantee with a small default?

It is over 3 years old for £160 with a mobile phone company. It's on my husbands credit file. My credit file is spotless.

Thanks in advance.

ACG · 20 April 2014 at 6:20PM

There are lenders who will likely ignore it over 3 years old. Probably best to speak to a broker to ensure you are looking at the right lenders but i would say there will be 1 or 2 options if that is the only issue.

carameline · 20 April 2014 at 7:30PM

Thanks. Do lots of lenders do help to buy then? I thought it was just halifax and natwest.

pmd123 · 20 April 2014 at 9:26PM

I had a help to buy application with Halifax last week, declined due to my credit rating, despite being 900+ with experian, no defaults! credit card paid off every month and on the electoral role. Really surprised me, but the advisor told me only the highest credit rating would get approved for help to buy.

I have an application with Natwest on Saturday, and, as I bank with them, the system said I was "very likely to be approved" but I'm sceptical as I have been declined once already.

I'm guessing with a default on file you will be unlikely to be accepted for HTB with Halifax, but maybe another lender may be more lenient.

ACG · 20 April 2014 at 10:46PM

There are more than just 2 HTB lenders. Maybe 10 or so.

dgtazzman · 21 April 2014 at 1:30AM

You must have had something on your credit file they didn't like, or maybe affordability. We got accepted for HTB with a randomly CRA generated number of around 800 and 4/5 (which has now suddenly gone down to 3/5 for no apparent reason, not that I care, I know my history is spotless).

PeacefulWaters · 21 April 2014 at 5:26AM

pmd123 wrote: »

I had a help to buy application with Halifax last week, declined due to my credit rating, despite being 900+ with experian

Why don't you try Experian as they've allocated such a high number to you?

kingstreet · 21 April 2014 at 8:02AM

Obtain your Equifax credit file and do not pay for these "credit scores" as they are indicative only.

pmd123 · 21 April 2014 at 9:31AM

900+ score was from my free trial 6 months ago, credit report was ordered 3 days ago to double check. I check my noddle report every month (4/5), which shows no defaults or late payments (everything is direct debit) only thing being that noddle still shows my address as my previous address from a year ago.

Have been in touch with electoral services, who have confirmed I have been on the electoral role at my current address since November, and have confirmed they have sent this out to the CRAs. I have been given a confirmation letter by them confirming I am registered at my current address for my application with Natwest (if that will help at all).

Since being declined by Halifax I have cancelled my back up credit card £2500), and reduced my main cc from £4500 to £3000 as I feel I may have too much credit available, but the balances on them were £200 and £5 and are both paid in full every month.

Mus be something, but really not sure what.

James_Robertson · 21 April 2014 at 5:42PM

Hi there,

Wot a lot of stress and worry for £160!!!
Do you have an uptodate copy of your credit report?

1 .I would say because "default" is 3 years old, it will have less emphasis placed on it by potential lenders.
2 The amount is very small, less than £200 is really not going to worry a lender I wouldnt have thought.

ukbrockest · 21 April 2014 at 9:38PM

I had a default 5 years old for £12 that was settled

Santander declined me on 95% FTB

Nat West AIP, then offer on 95% FTB so it is possible

Help to buy with small default

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