Mortgage with a credit default?

dopeyp

I wish to obtain a mortgage in the near future but i have one credit default in my history. This has been paid and the default will expire in september 2007.

My question is, currently what effect will this have on my obtaining a mortgage and once the default has expired do i still have to declare that i have had a credit default when asked?

Any help greatly appreciated.

MortgageMamma

Hi there

You will be able to get a mortgage, but perhaps not with a mainstream lender. One thing to be considered its why you obtained the default, how much it was for and when you paid it off.You shoul be able to get a fairly competitive mortgage as I expect you will be in the very near prime category, which is not much different from mainstream products.

After September 2007 there will be no need to declare the default as it will be removed from your credit rating.

As always take the advice of a professional before applying for a mortgage as multiple credit checks could damage your credit rating even further.

MM

dopeyp

Thanks for quick reply!

I obtained the default through non-payment of a credit card bill when i was a student. it was paid about a year after. I have since been working on building a good credit history.

would there be a big difference if i wait until the default is removed?

MortgageMamma

No not really. I do know some lenders you could get good rates with despite the default, they all have different stances on these things you see. As long as you have a deposit for your mortgage you will be OK. One thing you could do before applying for a mortgage is to obtain your credit ratings from experian and equifax and check all is OK on them. Its always a good idea to take these along to a whole of market mortgage advisor(someone who has access to all UK mortgage Lenders) and have them assess your finances and come up with the best mortgage deal to suit your needs.

MM

lenderbender

I work for a non conforming mortgage lender and we do not even recognise defaults. Many similar lenders have the same criteria and rates can be almost "prime" ie, almost as good as the hugh street.

herbiesjp

Most high street lenders would look at this without the need for going down the non conforming route though

Old_iron_balls

I have one satisfied default from 2002 and a history of debt and missed payments.
BUT recently passed the credit check for a 100% mortgage with Northern Rock via Bradford and Bingley.
For years I thought id NEVER be able to get a mortgage but our broker said as the default was a few years old and satisfied we shouldnt have a problem.

Put our first offer in yesterday