Shared ownership mortgage with a default

leereni

Please can someone give me some advice.

I'm 31, earning about £34000 basic but an extra £5000 per year overtime.

I've got a default registered against me (£6500) in february 2007 for a loan which was refinanced. I sent LLoyds TSB a letter a couple of days ago asking them to remove the default on my file as the loan was refinanced and therefore settled.

Unfortunately I've slipped behind another loan however will be back on top of it in a couple of months.

What are the chances of me getting a shared ownership mortgage? I'm looking at borrowing £50000. Do they take on someone with a default? If I need to go for a dealer with a higher interest rate, what rates do they normally charge?

Thanks

badmoon

I can only go on my own experience and this is for a shared equity mortgage.

Had a very shady credit history in the dim and distant past (incl an IVA settled and now off my credit history) This though led to me having some defaults on my account. Nearly all of which are the 6 year stage (1 to come off in January - 2 in late 2010 or sometime in 2011) All showing as settled however.

Didn't think I'd have a hope in hell of getting a mortgage and yet the mortgage offer was sent to me at the end of last week and got an A pass at the AIP stage with the Halifax.

I may be wrong but I'd say as long as you get your loan back on track and keep it that way for several months at least and also sort out the default showing it's settled then it wouldn't be a definite no no but I think you'd have to have your credit history showing several months at least of no missed payments (loan wise). Mine's fine in that respect.

I'm going with a new build and used a mortgage advisor they recommended and she's been great. I've got a fixed rate mortgage and it's 5.49% interest based on an 84k mortgage.

I earn £28.8k so that stands you in great stead. One thing to bear in mind and again I could be wrong as don't know it all re shared ownership but most banks are requesting deposits. 5% in my case.

Hope this helps a bit and at least proves that even with the most awful time in years gone by, there's light at the end of the tunnel.

leereni

Thanks for the above.

Just to add I'm having some problems updating my credit file with experian.

Basically the loan I had and referred to above. It was settled due to being refinanced in feb/mar 2007. My experian credit file shows for the 12 previous months from march 2007 as either a 5 or 6 meaning it was either 5 or 6 payments late. According to experian an 8 in the box would mean it's in default therefore technically speaking it's not shown in default, it's showing as either 5 or 6 payments late. I've just sent a letter to lloyds tsb querying this. I just can't believe I've left it for so long. This is exactly why I'm turning against organizations being able to share information. Don't know what they'll say but if it's cleared then I can't see why I can't get a mortgage.

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not_tonight_josephine_2

omcornwall wrote: »

I've got a default registered against me (£6500) in february 2007 for a loan which was refinanced. I sent LLoyds TSB a letter a couple of days ago asking them to remove the default on my file as the loan was refinanced and therefore settled.


Thanks

Unfortunately the fact that the loan has since been settled doesn't alter the fact that you defaulted on it - you should make sure that Lloyds update your credit file to show that the account has been settled, but the default will remain as it is a factual record of how you conducted the account.

What sort of deposit do you have saved up?

leereni

Not much, just about £5000.

Regarding the default on the account. Should it show as default or in arrears as it is still shown as in arrears for the previous 12 months last updated february 2007.