Remortgage with satisfied default

mark_d_5

My mortgage is coming up for renewal next April 09 and I am looking at what options I have when it comes to finding a good deal. The problem I have is that I was issued a default notice on my credit history over a year ago. I am still disputing this default as It was issued to me after I moved address into my new home. It was only for £40 and I paid the notice as soon as I was aware of it. So it was satisfied asap.

My question really is if I can not get this default lifted (which by the sounds of it appears to be a mammoth task) where does it leave me when I come to finding a remortgage? Will my current lender (Coventry BS) run a credit check on me if I was to go hunting for another deal with them? Or am I safer to look elsewhere and if need be just let my current rate be converted to their standard variable rate (currently 7.09%)? Would it be wise to go through an independant broker to find me the best deal? bearing in mind that the more credit checks I have the worse it gets...

Any advise would be much appreciated.

koexelek

I'd try Coventry first. They are highly unlikely to credit search you if you stick with them ( where as every other lender will do if you want to remortgage to them) and offer good loyalty deals to their current borrowers.

mark_d_5

ok sounds promising.

I'm just slightly concerned that if I ask them for a new deal, rather than leave it to role, then they may run the search. Leaving me marked and on the highest rate. Are lenders legally allowed to hike up your interest rate if they find you have a bad credit score?

I have never missed a payment with them so you would think that this was good evidence to show I am a reliable customer.

Thanks for the quick reply.

koexelek

I am 99 % certain they won't score you if you renew.
Lenders never have done historically, and Coventry certainly never used to

The 1% doubt is just in case they have recently decided to :eek:

mark_d_5

OK cheers.

So just to be clear, worst case scenario would be that I cant get a deal elsewhere and coventry run a credit check, cant offer me a renewal, but leave it rolling to standard variable?

But more likely I ask for a renewal and get a new deal on better rate without a credit check..

herbiesjp

For a £40 disputed default you should be able to find deals elsewhere as well, provided they were better than what Coventry could offer

mark_d_5

Thanks for your reply Herbies,

I know the default was only for £40 but the most annoying part of this is that the amount doesnt really matter. If a lender does a credit check on me and it comes back under their threshold then its a simple no no.

Would going into a lender for a chat about my situation help? Would they actually take my story into consideration?

koexelek

mark_d wrote: »

OK cheers.

So just to be clear, worst case scenario would be that I cant get a deal elsewhere and coventry run a credit check, cant offer me a renewal, but leave it rolling to standard variable?

But more likely I ask for a renewal and get a new deal on better rate without a credit check..

All correct

herbiesjp

mark_d wrote: »

Thanks for your reply Herbies,

I know the default was only for £40 but the most annoying part of this is that the amount doesnt really matter. If a lender does a credit check on me and it comes back under their threshold then its a simple no no.

Would going into a lender for a chat about my situation help? Would they actually take my story into consideration?

Some lenders will say no, others will not.

If you feel confident going direct to a lender to explain the scenario then talking it through with a lender is a good option

Otherwise have a chat with a whole of market broker, as they will be best placed to put your case forward in the best possible light

Only do this however once you have seen what deals Coventry will offer you first