Default on file can i still get mortgage??

phales

Hi brand new on this site and i was really hoping someone might be able to help PLEASE...?

Me and my partner applied for a mortgage back in 2008 and got accepted with a mortgage offer for the amount required, which was great but due to the housing mkt at the time we didnt proceed.

After a year of renting we applied for a mortgage a few months ago and we were declined. I listened to the mortgage advisor and got my credit file from experian to which i found 2 defaults on my report one from Jan 2008 and one from 2004. After looking through loads of posts i found that the 2004 default will be removed in the nxt few months but the 2008 one will not be removed unitl 2014....

I believe this default has prevented me from getting the mortgage applied for, as i still owe £7k on this loan.

Does the amount still owing on the default make a difference?
If i settled the default (Paid in full) would that help me get a mortgage?
Any particular companys i should look towards?

Any help would be great as waiting another 4 years for the default to be removed to get a mortgage would be a nightmare..

Thankyou in advance

declaration

I have been trying to get a mortgage with 1 default, and it has proved to be incredibly difficult.

I don't think paying it in full makes that much of a difference, but it may help.

_Andy_

What is the property value?
how much deposit do you have?
What course of action has your broker suggested?
Have they tried other lenders?

Basically though with a 7k default high street lenders aren't going to be interested.

VIGILANT22

Even if you settle the default now you're not going to obtain a mortgage immediately....and nobody can say what the criteria will be 1yr from now...

Matt1982

Yes you can gets mortgages with those defaults. Problem though is it with a select few lenders, and deposit will need to be high and interest rate high too.

Conrad

A default that size will make borrowing impossible apart from with very very expensive lenders and in any event most applicants fail the affordability rules with these lenders as thier rates are so high, doh!!!!

milkybeer

Hi

I also have 2 defaults on my account. one from 2010 which was £900 reduced to £400 at present. hoped to be settled next month. And a second for £420 from 2008. Would these impact my chances of a mortgage massively with them being such small amounts?

GMS

milkybeer wrote: »

Hi

I also have 2 defaults on my account. one from 2010 which was £900 reduced to £400 at present. hoped to be settled next month. And a second for £420 from 2008. Would these impact my chances of a mortgage massively with them being such small amounts?

How much deposit do you have? How much do you want to borrow? What is your income?

Probably best to speak to a broker. Don't apply at random to lenders as multiple searches will lower your credit score and cause further harm.

With adverse credit you will need to apply to the correct lender, not the cheapest one.

DVardysShadow

milkybeer wrote: »

Hi

I also have 2 defaults on my account. one from 2010 which was £900 reduced to £400 at present. hoped to be settled next month. And a second for £420 from 2008. Would these impact my chances of a mortgage massively with them being such small amounts?

Looking at the rest of the debts on your sig, you are not going to be getting a mortgage soon, because you don't have any savings for a deposit. Or if you do, then why are your defaults not paid off?

As I see it, a small default is as damaging - possibly more damaging than a large one. Defaults which are trivial in relation to the savings you need for a house convey a strong message that you could pay, but you won't pay just yet. Which is an attitude to financial management which will raise questions over how you will deal with money getting tight if you are on a mortgage.

nerousemortgage786

I registered for a course with the Open University last year. Unfortunately before I could even start the course I had to email my tutor informing him/her that I had to withdraw from the course.

I received a reply from my tutor stating that that was fine. After this I though that was the end of it until I received a letter from the OU asking me to pay for the course. I rang them and explained that I had already informed my tutor, but their reply was that I had to inform their administration department. As a result of this I had around about £378 to pay. I agreed to pay them by installments by a certain date. However I still hadn't paid the full amount by the required date. According to my credit file my account was in default.

What I would like to ask is would a lender take these circumstances into consideration as I wasn't expecting this debt. Would I still be able to get a mortgage with this default on my file. Unfortunately my credit rating is 631.

Please can someone advise me on this issue.