4 defaults on Credit report

annie_m

My husband and I have applied for a mortgage an our application has been deferred.

I've now investigated my credit report which has 4 defaults.

Does this mean we wont get a mortgage at all?

I feel so guilty, my irresponsibility is now costing us our own home.

Any help would be very much appreciated.

PARIS_5000

annie_m wrote: »

My husband and I have applied for a mortgage an our application has been deferred.

I've now investigated my credit report which has 4 defaults.

Does this mean we wont get a mortgage at all?

I feel so guilty, my irresponsibility is now costing us our own home.

Any help would be very much appreciated.

It would be very hard to get credit until the defaults fall of the credit file which will be 6 years from the date of the defaults. If you settled the defaults they will still stay on your credit files for six years.

annie_m

Would it not count that my Husband has good credit scoring and is the wage earner in our household? I am a stay at home mum and have been debt free for the last 3 years......

I'm trying to accept that we wont get it, but if there is any light at the end of the tunnel I'd be so happy.

I've been searching online for as many answers as possible and things don't sound good, but perhaps all I can do is wait for the official decision.

rj1000

If you are really desperate, and your hubby is the only wage earner, could you not apply for the mortgage in his name only?

Wouldn't this mean only his credit history would be taken into account?

Money_Man

annie_m wrote: »

My husband and I have applied for a mortgage an our application has been deferred.

I've now investigated my credit report which has 4 defaults.

Does this mean we wont get a mortgage at all?

I feel so guilty, my irresponsibility is now costing us our own home.

Any help would be very much appreciated.

Depends on the value and defaults but its not really the type of information a lender wants to see on your credit file. Are they credit card defaults or mail order for example? Is the total value a couple of hundred pounds or a few thousand? Your loan is secured on your property so you should find a lender out there, although your APR may be higher.

Hope you get sorted!

annie_m

There is a combination of things I thought were ancient history, but not ancient enough. One is for a mail order catalogue in 2003, one for a store card in 2004 and then to do with a loan I took out over a 5 year period and had to default twice at a time when I was in between jobs.

I did call the loan company at the time explaining my situation and thought that had been enough as payments were resumed as normal once I had been paid from the new job and it was well paid which allowed me to pay the lot off before the loan term was up.

At the time I thought as long as they got the money back within the term, no problem. Thats being young free and living away from home for the first time I guess!

rj100 - we asked that, but as we are married we are financially linked so it wouldn't make a difference unfortunately.

My credit rating on Experion is Fair, I just don't know if it's as cut and dried as being based on the defaults or if they take into account change in circumstances/recent financial activity. I just have to wait and see what happens - thanks for your replies x

Johnny_Chaos

annie_m wrote: »

My husband and I have applied for a mortgage an our application has been deferred.

I've now investigated my credit report which has 4 defaults.

Does this mean we wont get a mortgage at all?

I feel so guilty, my irresponsibility is now costing us our own home.

Any help would be very much appreciated.

It does not necessarily mean that you cannot get a mortgage at all.

It may mean, for instance, that you cannot get a mortgage with a high-street lender. Or it may mean that you agree a higher APR with one of the mainstream lenders. Your best bet would be to speak to a broker or two, and see if they can help.

Also: how recent are the defaults? If they're over, say, three or four years ago, then it won't look as bad as if you defaulted last month.

Your ability to get a mortgage will also depend on the loan-to-value you're looking for: if you are after, say, a 90 to 95 per cent mortgage, then you will struggle; but if you're after a, say, 75 per cent or less mortgage then you are more likely to find something.

Mrs_Bumble

Does your husband income cover any mortgage requirement? He is only accountable for your credit history if you are a joint applicant so if his income carries the application then no questions asked about your history.

Pammy

Keep us updated on this Annie. I have two defaults for small amounts on a stupid Kays catalogue and was turned down by Abby. I have been too scared to apply again. But I have read other people who have been accepted. Mine are from 3 and 4 years ago and everything good since. Its very frustrating.

The experian credit score is in no way an indication. I have an excellent score with Experian but only one star with Equifax. All lenders have their own 'secret' criteria so what experian judge you on is irrelvent.

Personally I wish the scoring was transparent.

annie_m

Well we have a 40% deposit, but are on a first time buyers scheme which I think means rules might be stricter and we can only get our mortgage through the co-op as part of the deal.

The defaults are just over 3 and just under 6 years ago.

As for the joint application, we haven't actually been able to access my husbands credit history on Experian, we have to wait 2 days it said. So it may be that he has something - for instance we have a loan of £8,000 outstanding, which wasn't on the application, not because we were hiding it, they just never asked about loans. He's also self-employed.

We're both wandering about like depressed zombies pretending not to be for each others sake! I thnk the best way to think is that it's not going to happen and if it does, I'll be doing cartwheels!

I'll keep you updated as to what happens - thanks again for taking the time to read/reply x

GSXRCarlos

what's the first time buyers scheme???