Has anyone been accepted and had credit defaults

Pammy

There are so many posts about defaults on credit history across the forum but most seem to end with the question and no updates on outcome.

What would be really useful for me is to know if anyone has had defaults on their file and been offered a mortgage.

Anyone?:o

talkalot

I had about 19 defaults for about £95000. All just under 2 years ago. Did a full and final IVA. All defaults now satisfied and the IVA completed. Had not missed any form of payment before IVA and have not missed any since. Had good LTV about 50% and managed to get 10 year fixed with HSBC. Had been with adverse lender before.

Pammy

Thanks. 19 defaults? Gosh. Can I ask what amount of mortgage you , did you have a huge deposit?

skillmaster

would love to know how to get a mortgage.

have 1 default of £27 which i just paid off.

my credit sucks. no previous credit!

Conrad

Pammy, I sympathise with Doctors when they give obtuse answers, despite thier patients wanting a definitive yes or no.

Tis similar with mortgages, with shades of grey much of the time.
Bare in mind if a 'real world' client approaches me with such a query and I think there is a high chance they will committ themselves to me, I go into a detailed assesment and much work, but this is impossible on a forum where someones 'quick' question could involve days of work - for example several mortgage applications and lots of calls to underwriters and contacts.

Forums are great for a quick generalised over view but most of the time it is not possible to go into depth.

Then there is the problem of this type of communication. Typically the majority of posters leave out tons of vital info and brokers have'nt the time or energy to create a 10 page fact find online, and even with said fact find, further info would be needed.

SUMMARY

In principle defaults are not a certain bar to obtaining a mortgage, but MANY factors need to be considered. The HSBC story above is a classic example. I've know HSBC turn away many people for small defaults even where the LTV is low so quite hyow that case was accepted is a bit of bermuda triangle event.

talkalot

I think a few factors helped us. My wife has been with HSBC in her own name for over 10 years. She has always run her account very well. Just before I entered the IVA I repaid a loan I had with HSBC so they were not included in the IVA . It was a re mortgage the house was valued at approx £170000.00 we needed a £80000.00 re mortgage. So I think some (not all) banks look at the whole picture.

Pammy

Conrad wrote: »

Pammy, I sympathise with Doctors when they give obtuse answers, despite thier patients wanting a definitive yes or no.

Tis similar with mortgages, with shades of grey much of the time.
Bare in mind if a 'real world' client approaches me with such a query and I think there is a high chance they will committ themselves to me, I go into a detailed assesment and much work, but this is impossible on a forum where someones 'quick' question could involve days of work - for example several mortgage applications and lots of calls to underwriters and contacts.

Forums are great for a quick generalised over view but most of the time it is not possible to go into depth.

Then there is the problem of this type of communication. Typically the majority of posters leave out tons of vital info and brokers have'nt the time or energy to create a 10 page fact find online, and even with said fact find, further info would be needed.

SUMMARY

In principle defaults are not a certain bar to obtaining a mortgage, but MANY factors need to be considered. The HSBC story above is a classic example. I've know HSBC turn away many people for small defaults even where the LTV is low so quite hyow that case was accepted is a bit of bermuda triangle event.

Thanks. I am so disheartened by the whole process I guess Im looking for a glimmer of hope from people who have been successful.

On the flip side of your doctor analogy, as a patient you can go to many GP's and get a different diagnosis/advice leaving you very confused and frustrated.

Thats my position with a mortgage. I explained to the broker my situation. Looking at a property for £220,000 with a £70,000 deposit. Two defaults, settled with a mail order and mobile phone from 2005. One of these is in dispute.

Its joint, no blemish on my partners account. Turned down by Abbey and then informed by the broker we would never get a mortgage with anyone until 2011.

Both employed, been in my £40,000 per year job for 10 years. Bank account all up to date.

Anyway his advice has left me confused. Im hesitant now to try again due to the fact I don't want my report to show several attempts and turn downs.

bundubasher

You asked a very valid question and I've asked the same one on another post. I meant to be posting a new thread with exactly the same Q.

Taking on board what C is saying above I still think it would be most helpful if someone says yes, I had a few defaults, had this much deposit and got a mortgage over the last two to three months.

I have a 20% deposit, you appear to have much more than I, but I've been unable to get an 80% mortgage with platform whom I consider a specialist lender, and there are not many of them about. Did get a decision in principle for 75% though.

I have just had a little peep on the platform website (revised August lending policy) hoping they would have relaxed their LTV but it appears as if its been reduced from 75% to 65%! Can any advisers on the forum enlighten me please?

At this point, I'm really desperate, got a really good flat, at a great value, I am on decent salary of £40K. My defaults date back to 2005 and they are all settled; No missed payments no debts over the last 4years, in fact, I've been able to get a good current account with interest free overdraft of £200; £5,000 limit credit card and even approved for a £10K loan with a high street bank! but still cannot get a 80% mortgage with Platform. Ha!(must add that the accounts i.e. bank account and credit card, dont currently appear on my credit report when I view my report because of an address variation but I guess Experian and other banks who search, can see them? difference on the address is that Experian's address appears as house number while bank address appears as flat number. Experian's address system does not recognise the flat number variation but only house number which means some "good" accounts have fallen off) does this perhaps affect my credit rating. Currently this is at 801. Does this mean I have two identies on the credit profile which my bank like and lend me on?

Just writing this does confirm C's point about each case being unique and all these little facets contributing to final decisions. Not stealing your post, but agreeing that:

If anyone can come up and say, yep, I have been in a similar (note: not the same situation); had defaults, and X% deposit and I got somewhere, that would be most re-assuring! (to be accompanied by the name of the star broker in a private message!!!)

My mortgage broker has suggested that we run another search (4th one he will be running on my credit file) to see if they will accept me for 80% this time and I am just nervous. He tells me that mortgage searches dont have the same negative impact as other types of credit so unless I keep trying I will never know? Do you agree?

Anyway, to cut a long story short. Anyone out there? Dont be shy...

samay007

As a FTB, I recently (May 09) bought a house for 90% LTV, i had 3 defaults (in the last 2 years) and most of the high street banks could not provide us a mortgage and few banks were willing to provide high interest rate of 7.49% and above. i did little bit of work following the MSE forums and removed the 2 defaults, which was not my fault. Now i have one default on my mobile contract (£29), which most of lenders does not consider as serious one (i mean mobile contract, as many ppl does have this problem)

Pammy

Samay007 who did you end up obtaining your mortage with?

Regarding searches on your account I don't think anyone would be able to give you a solid response to this. Although it doesnt record a decline, they can assume you have been. It could set off a red flag but again it all depends on the criteria.

Shakethedisease

I got a mortgage with Beacon Homeloans with a 3 year old ccj for £248. I think they ignore defaults altogether ?

House £110,000, deposit £35k so ltv round about 70 %. Income 28k. I posted the whole saga if you want to look at the thread I did ( click my username an it'll be in there somewhere in my posts ). Oh and I've been self-employed for 15 months now ( which was another hassle in itself being regarding mortgages ).

The first broker I tried also tried Abbey first for me with no joy. I read somewhere that the Post Office are a little more forgiving than most for little mail order/mobile phone defaults but no doubt someone will know better than me.

I found Googling each lender's lending criteria useful. Good luck to you both.