Mortage Advice with a default- urgent

spayne82

Hi there,

Thanks for reading.

I currently own a flat and looking to rent it out and changing the mortgage over to a buy to let.
I then plan to buy a new property with the equitity on the flat.

I have a default on my credit history and it has been there for 3 years.

Through a broker, we tried a buy to let lender and the broker told me they refused me but the lender have still set up a standing order with my account. What does this mean?

I was also refused with a main stream lender for the new property even though i have a 20% deposit.

When i originally bought my flat the default wasn't a problem but i had an 70% deposit.

Any advise would be greatly received.

Thanks x

Conrad

There are some pretty reasonable rates for those with defaults, but what you are attempting to do is more complex than you might think.

An experienced broker should be able to help.

As for the standing order - its nothing, you cant pay a mortgage unless you legally complete on one. No doubt it was instructed whilst the mortgage was being set up.