getting a re-mortgage with a default

Darlinbud

Hello
Hoping for some help and advice, our situation is that we own our home with no mortgage, it is valued at approx £190,000 we would like to borrow £60-80 to build an extension, however we have tried our banks and building societies who have all refused beacuse my husband has a default on a loan payment from approx 6 months ago, we have since settled the debt and having checked our Equifax reports it shows the debt as settled.

Does anyone know who else, or what else to try to get a mortgage? I would have thought it's a fairly safe mortgage to a lender as we have no mortgage already and only want to borrow a small % of house value..... but that seems not to be the case!

Many thanks for any help and advice.

_Andy_

You need to speak to a broker who will find a lender happy with the adverse. It's not going to be high street banks etc due to the recent defauly.

herbiesjp

The figures you are looking at are fine, but the default will cause problems

As long as your incoem can support that mortgage amount, there will be lenders who could agree this for you

How much was it for?

Mrs_Bumble

Can I just check, do you have an outstanding mortgage at the moment? Is the 60-80K total borrowing or on top of what you already have?

How much was the default for?

What is household annual income?

Any other credit committments?

herbiesjp

Mrs_Bumble wrote: »

Can I just check, do you have an outstanding mortgage at the moment? Is the 60-80K total borrowing or on top of what you already have?

?

our situation is that we own our home with no mortgage

OP has stated no mortgage

Mrs_Bumble

lol I am having such a good day! Thanks!

Sorry OP! Ignore previous post!!

I am going to go and lie down now!

How much was the default for?

What is household annual income?

Any other credit committments?

Which banks and building societies have you already tried?

Have you seen an up to date copy of your credit files?

herbiesjp

lol - there there

Cup of tea on its way to you

Darlinbud

Mrs_Bumble wrote: »

lol I am having such a good day! Thanks!

How much was the default for?

What is household annual income?

Any other credit committments?

Which banks and building societies have you already tried?

Have you seen an up to date copy of your credit files?

Hi,
The default was for £50 (approx I think) but the debt has now been settled in full.

Household income is only £25,000 approx.

We have an other loan which is unsecured and is £300 a month (think the settlement to pay it off is £18,000), if we can borrow the £80K rather than £60k then we would pay this loan off in full. Husband also has a loan £160 a month (£6,000 to settle) and again we will pay this off in full if we can.

We have tried Lloyds TSB, Natwest and Derbyshire.

Yes seen upto date credit files (the free one from Equifax). All my past payments ect all paid on time, no defaults etc, husband just the one default, but all other committments paid on time.

Thanks

Mrs_Bumble

Income is tight - if you are able to take the £80K would you be able to clear both the loans and still do the extension? do you mind me asking your ages? Do you have any child dependents?

Darlinbud

Mrs_Bumble wrote: »

Income is tight - if you are able to take the £80K would you be able to clear both the loans and still do the extension? do you mind me asking your ages? Do you have any child dependents?

If we can take £80K - yes we can pay off both loans and do extension. I am 25, husband is 35, we have 1 child and one due any day soon.

herbiesjp

Darlinbud wrote: »

We have tried Lloyds TSB, Natwest and Derbyshire.



Thanks

Stop !!!!

Before you go to anyone else , go to a whole of market mortgage adviser

If these companies have done credit searches, it could be doing you more harm.

The income is fine for that mortgage amount seeing as you are clearing all debts, and using the extra for the extension.

The problem is the recent default, albeit for £50

An adviser would be able to discuss with a lender verbally BEFORE doing any credit checks to make sure that it has a better chance of going through, or at least not wasting your time on lenders that will definitely say no.