Advice re defaults and mortgage application

DAB1209

Firstly sorry for repeateadly asking so many questions (feels like im posting everyday with a new set of problems!)

I have done nothing but worry since we applied for mortgage (last monday) due to my less than clean credit report.Today bank contacted me asking me to get my credit report as their was something on it.I was aware of the defaults which are settled and was told to get receipts for them.It appears there is another default not paid and I assume its the unpaid one that the bank is reffering to??

I have cleared the balance today

So question is at what stage of the mortgage process are we at,if they had no intention of lending would they have declined rather than question the credit report?

I realise im clutching at straws and its impossible to know the outcome but just wanted to hear your thoughts........

jon_boy75

DAB1209 wrote: »

Firstly sorry for repeateadly asking so many questions (feels like im posting everyday with a new set of problems!)

I have done nothing but worry since we applied for mortgage (last monday) due to my less than clean credit report.Today bank contacted me asking me to get my credit report as their was something on it.I was aware of the defaults which are settled and was told to get receipts for them.It appears there is another default not paid and I assume its the unpaid one that the bank is reffering to??

I have cleared the balance today

So question is at what stage of the mortgage process are we at,if they had no intention of lending would they have declined rather than question the credit report?

I realise im clutching at straws and its impossible to know the outcome but just wanted to hear your thoughts........

It's very hard to say for sure, and I dont want to dampen your mood, but you are amongst the least likely to be offered a decent mortgage, unless your deposit is huge. I say 'decent' because you could get an offer, if you go through a whole-of-market broker, but its not likely to be competitive. Some people are currently getting offers that are 5% above the base rate. Considering lending is down by such a huge amount, even the most prudent and angelic folk are getting turned down, simply because the money does not exist to lend.

I hope in your case I am wrong, sincerely.

I am just sitting tight and waiting. We only have 10% deposit and I'm cleaning up the odd error on my file and waiting for some items to drop off the end, such as a few late payments.

In a sort-of aside, I was watching the news last night about the growing discontent among people who are losing their jobs, being rejected for mortgages etc, while many of the bankers are sitting pretty with their nice salaries and bonuses. They made huge mistakes and abused the system, and appear to have gotten away with it, using OUR money to bail them out. It's funny, because when we make mistakes (late payments) we are punished beyond measure. I pay over £1000 a month in tax and sometimes I just want to cry thinking where it goes.

beecher

What's your LTV? Unless it is very low I can't see you being accepted with a default which was only cleared today. I'd certainly prepare yourself for what you'll do if this happens. However, ultimately you have to wait for their decision.

samay007

Hi DAB, my case was same as you. FTB, 10% deposit for 150K property and 3 default on my credit file in the last 2 years. i manage to get a mortgage agreement from halifax for 7.49% (Whole market - mortgage advsior). when i aplied for C&G, natwest they all rejected. i did some work, found all the receipt for my default which i settled before and put some notification. finally i got offer from post office mortgage for 5.85%

jon_boy75

samay007 wrote: »

Hi DAB, my case was same as you. FTB, 10% deposit for 150K property and 3 default on my credit file in the last 2 years. i manage to get a mortgage agreement from halifax for 7.49% (Whole market - mortgage advsior). when i aplied for C&G, natwest they all rejected. i did some work, found all the receipt for my default which i settled before and put some notification. finally i got offer from post office mortgage for 5.85%

wow! that is reassuring. I feel a bit more positive now

: )