Mortgage and Defaults

Funkygibbon

Apologies if this is a bit too general or stupid question!!!
I have 3 defaults on my file, 2 have been settled and the 3rd still has £1400 against it. My question is will I still be able to get a mortgage with this credit file (credit score is 862) and what percentage deposit would I need, or will I need to wait to clear the 3rd default and would I then need less of a deposit??

Thanks to everyone!!

_Andy_

How recent are the defaults?

koexelek

Without the full facts, I think you would need at least a 25% deposit, and would be looking at rates of around 9%

Funkygibbon

Thanks for the replies, here are the details.

Default 1, Default Date 13/01/2005, Default Balance £2257, Current Balance £1492

Default 2, Default Date 06/05/2005, Default Balance £1193, Current Balance Satisfied

Default Date 23/02/2007, Default Balance £1113, Current Balance Satisfied

happybroker

with a 25% deposit you have a slim chance of high street but it would need to be carefully discussed with the lender prior to application.

Less than that and it could be a bit of a struggle unfortunately

Funkygibbon

What difference would clearing the first default make?

luckyfool

Clearing it now, and applying in a year or two, would make a difference. For applications just now then it would be unlikely to change much. I don't see a high street lender being willing to do anything for you in the current lending environment however big your deposit is, if it was just one of those defaults and satisfied a year or two ago then maybe, but three would be too much however good an excuse you might be able to give them.

20% deposit is achievable with rates just under 9%, with a 25% deposit you could get a fixed rate at just over 6% or a LIBOR tracker in the mid 5%'s (would steer clear of a tracker on those terms to be honest though).

Speak to a decent broker who can run through things in more detail and provide you with a full recommendation after conducting a factfind.