Default on credit report

Deb795

I have saved 10% for my mortgage deposit and contact a solicitors and a surveyor because I have found my dream homuse. However, when it came down to processing my mortgage application I have discovered I have a default of £262 which was a late payment. My partner had supposedly been paying the catalogue payments which were in my name but it turned out every payment he made was late. I have now been refused a mortgage because of this even though the account was settled and it had happened 5 years ago and 3 months. I understand defaults last for 6 years but I am really worried that the property I want will be sold in 9 months time as it has already been drastically reduced. Is there any help anybody can give me...I am pretty desperate! Myself and my new partner have a combined wage of £45k and have not had any other negative aspects on our reports...my partner has an excellent credit score. Does anybody know of any companies would entertain giving us a mortgage? Thank you.

DVardysShadow

Who refused you?

Deb795

HSBC and Natwest

DVardysShadow

They are firstly a bit risk averse and also large enough to have a fairly automated process. Who do you have your deposit saved with? Does the savings relationship lead to a mortgage provider?

The other thing to suggest, now, is write a letter of explanation to cover the default, exactly as you have explained to us and present this to lenders before hand. It might help you change perceptions - but most lenders do tend to automate this part of their process. More importantly, it could save you spending time and money on applications which the lenders can tell you they will not accept.

Deb795

Both myself and my partner have our savings with HSBC. We are considering letting them send our application to their underwriters to see if they can reverse the automated decision but I do not know the likelihood of them overuling their original refusal.

A letter is sent being sent out from the company who have put the default on my report that will state my ex-partners payment being late and the fact that the account was paid and there is no money owed to them but it will also state that it is my fault for not putting the account into my name. I am now kicking myself for not doing this but I had no idea (at the age of 19, a single parent student at uni) that these late payments would be so severely be impacting my finances now. I have never had any debts other than student loans, I have just applied for my first credit card recently in a bid to boost my credit score but its looking like this was a waste of time. Everything I buy, I save for myself as getting into debt is something my brother did and something that I wanted to avoid at all costs.

I am hesitant to contact other companies too as I understand from talking to somebody from credit expert that every time my report is accessed a 'footprint' is being left which could have a negative impact on my credit score - something I could do without.

Thank you for your help.

DVardysShadow

Yes, what you want is an outfit which can tell you if they will accept you before doing it for real if you tell them what they find if they do it for real. You should let the decision go to the underwriters now - and you should have a think about whether you can argue that your deposit shows you can meet a regular financial commitment.

Doozergirl

It is more acceptable to leave footprints for mortgage applications, it's not too bad.

I think you should talk to a broker as they will know which companies are very strict. I imagine that the high street banks are all quite strict as they can afford to be risk averse with the footfall they get. I know that with C&G through Lloyds you need to be whiter than white.

Not having much credit at all will affect you but I remember worrying constantly with my first mortgage and there was no problem at all - I was in much the same position as you - I had been a wee bit silly when I was 19 and had not really had any form of credit since then until my mortgage application.