Good Lenders for Minor credit issues

asajoseph

Hi,

My partner and I are about to apply for a new mortgage - I have a pristine credit record, however over 5 years ago she has a default on her file, but has been clean ever since.

Does anyone have any idea which lenders are likely to be most lenient in this regard? We've tried with Abbey, but they have a cast-iron policy to refuse any application with a default on the record.

We've been told by Natwest (who she banks with) that they can be quite lenient, but I was wondering about other lenders?

I've spoken to my IFA about this already, but I was wondering if anyone here had any thoughts?

mortgage-adviser-now

Woolwich are a sensible bet.

herbiesjp

How much was it for? and who with?

At over 5 years old, you may fit the criteria of a few lenders, but you would need someone to check that out for you or you would need to do that yourself

asajoseph

Thanks.

We've had a look at them (our IFA told us the same thing), but their rates aren't great.

As I said in This thread, I'm either going to try Halifax to see if I can get a good enough multiple on my own (and deal with the stamp duty consequences when they arrive), AND/OR approach Natwest and see if they'll be lenient on the credit issues (as my partner banks with them).

But if both of those fail, Woolwich may be a good last chance saloon.

That said, by the time we get around to them we'll be on our 5th application (we already have 2 declines from Abbey), so we may be out of luck by that point anyawy.

We were thinking about using them maybe as a fall-back option, if we can't go anywhere else.

asajoseph

herbiesjp wrote: »

How much was it for? and who with?

At over 5 years old, you may fit the criteria of a few lenders, but you would need someone to check that out for you or you would need to do that yourself

We'd be looking for £300k, which is 3.5 times our joint salaries (both of which are provable) - this doesn't seem like too high a multiple, and we can easily afford the repayments. Indeed, we could probably just about make things work if we only got £275k.

Property we're looking at is on the market for £450k, so the LTV shouldn't be a problem either.

herbiesjp

I meant how much was the default for and who was it with, as that will dictate if you fall outside of criteria as well

As for 5 applications - STOP!

Let a whole of market broker look into this for you before you do even more damage

asajoseph

Oh - I think the default was for about £1.3k, with HSBC (on a current account overdraft), in Jan 2004, and then settled in Feb 2004.

As I mentioned, our broker is whole of market, and he's tried to advise us as best he can about who will be most reasonable in our situation.

herbiesjp

Over £1k may be a problem

High street may be tough - does your broker have access to BEacon?

Although going via them can be a painful experience

asajoseph

Hmmm...

Beacon? Never heard of them - who are they?

herbiesjp

Sub-prime lender

asajoseph

Oh really?

Thought they were dead and gone!