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  • FIRST POST
    • RyanWills94
    • By RyanWills94 2nd Dec 17, 7:22 AM
    • 7Posts
    • 1Thanks
    RyanWills94
    Mortgage with a default
    • #1
    • 2nd Dec 17, 7:22 AM
    Mortgage with a default 2nd Dec 17 at 7:22 AM
    Hello,

    I posted recently about a small default that is affecting my chances of getting a mortgage. Apart from the default of £220 solely made up of bank charges my credit is clean, one missed payment on a contract and thatís it. This was a default back in 2014 but I had only found out about it in 2016, I called nationwide and they removed the bank charges now it remains satisfied. Iím looking to get a mortgage, and thinking about going to Leeds Building society as their criteria does not look as strict as most. When looking through the criteria they explain they can take one default/CCJ if under £500 and satisfied within 3months. Well for me thatís not the case, it has been satisfied for over a year now and is below £500 is this going to affect my chance of getting a mortgage?

    Thanks in advance
Page 1
    • ACG
    • By ACG 2nd Dec 17, 9:47 AM
    • 15,904 Posts
    • 8,147 Thanks
    ACG
    • #2
    • 2nd Dec 17, 9:47 AM
    • #2
    • 2nd Dec 17, 9:47 AM
    satisfied within 3 months of registration I think it means.

    One thing to note is that fitting criteria does not mean you will be accepted.

    To be honest, a 3 year old default, I would expect there to be options. However it would all depend on the finer details. A 95% Mortgage is less likely to get placed on the high street than a 90% mortgage for example.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • RyanWills94
    • By RyanWills94 3rd Dec 17, 7:30 PM
    • 7 Posts
    • 1 Thanks
    RyanWills94
    • #3
    • 3rd Dec 17, 7:30 PM
    • #3
    • 3rd Dec 17, 7:30 PM
    satisfied within 3 months of registration I think it means.

    One thing to note is that fitting criteria does not mean you will be accepted.

    To be honest, a 3 year old default, I would expect there to be options. However it would all depend on the finer details. A 95% Mortgage is less likely to get placed on the high street than a 90% mortgage for example.
    Originally posted by ACG
    Of course, but when looking through the criteria it gives you a good indication of who definitely will not accept you. Hopefully itís not a huge factor, it would help if the decision in principle would at least be referred to underwriters because I could explain the default. They may also look at my history before and after that and take it into consideration. Is there any high street lenders who accept defaults?
    • ACG
    • By ACG 3rd Dec 17, 7:53 PM
    • 15,904 Posts
    • 8,147 Thanks
    ACG
    • #4
    • 3rd Dec 17, 7:53 PM
    • #4
    • 3rd Dec 17, 7:53 PM
    Of course, you can use the criteria to discount certain lenders. But after that it is a little more complicated. A good example, I took on a trainee broker earlier this year. They did the research and found a lender where it fit criteria. I told her it would not pass credit scoring and to try the next lender down. Long story short, she went to the cheapest lender and it declined. Went to the second lender and it passed.

    A few will accept defaults, most will have sort of criteria surrounding it - eg, the value, what it was for, how old it is, whether or not it has been satisfied.

    High street lenders are not really interested in explanations. If a case passes credit scoring and an underwriter is 50/50 on it then they may ask for an explanation. But in the main, they get too much business to offer the personal approach on each case. There are smaller lenders who will do everything on a case by case basis, but they tend to be a little more expensive and possibly slower.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • WonderlandAlice
    • By WonderlandAlice 3rd Dec 17, 8:55 PM
    • 3 Posts
    • 0 Thanks
    WonderlandAlice
    • #5
    • 3rd Dec 17, 8:55 PM
    • #5
    • 3rd Dec 17, 8:55 PM
    If the default is solely made up of charges, you may want to go back to your bank and request for the default to be removed as a default should not be applied in the balance is solely made up of fees and charges. This is in line with ICO guidelines.
    • RyanWills94
    • By RyanWills94 5th Dec 17, 3:23 PM
    • 7 Posts
    • 1 Thanks
    RyanWills94
    • #6
    • 5th Dec 17, 3:23 PM
    • #6
    • 5th Dec 17, 3:23 PM
    Sent a letter last week and they have sent new information to all 3 CRAs so the default will be removed!
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