FTB - Advice

Jonesy_21

Hi,

I was just wondering if anyone could help me. My boyfriend and I are hoping to apply for a mortgage over the next few months. However I have a default on my file registered in Nov 2007 (I am currently disputing this as I believe it should have been registered in 2004 thus falling off my file this year). However playing devils advocate if they do not agree to remove it and it stays on my file will this affect my chances of being approved for a mortgage? I have checked my credit file and the default is registered with a £0 balance and is satisfied. My credit score is also 900

Any advice anyone can chuck my way I would be grateful

Thanks

Jonesy_21

Hi,

I posted this yesterday - is anyone able to offer me any advice?

Thanks

mic200202

You should first of all check your credit file with both experian and equifax to see if the info is the same on both.Sometimes they are different.Some lenders use one or the other.A broker can guide you further.

If the default is from Nov 2007, this will certainly cause you a problem with most high street lenders.If the amount is small,you stand a better chance.There are still or or 2 lenders who will look at this (depending on above).Go to an independent broker,who will advise you.

herbiesjp

What figures are you looking at - purchase price? mortgage needed?

The amount of the default is also important - some will allow a default if under £250, others under £500.

Some will be ok, as long as nothing in the last 12 or 24 months.

Who was the default with, and how did it come about?

Jonesy_21

Hi Guys - thanks for your response.

Herbiesjp -
Well our joint income is £55k and we have a £17k deposit, however we haven’t seen an advisor yet so unsure of how much we would be able to borrow.

The amount the default is for is £1300 and as I say has been paid and satisfied etc. I have had no bad credit since 2007 and have run every account perfectly.

The default was with Nationwide credit card and it came about as I entered into a DMP with Payplan along with another credit card (Barclaycard and a loan (MBNA).

The mortgage brokers I was thinking of using was London and Country given the review on this site – what do you think?

Thanks once again for your help, any advice really is greatly appreciated

herbiesjp

What you need to do is is get copies of your credit files, and discuss them with a good whole of market adviser.

You have got good income, however, without knowing what price range you are looking at in your area, it is difficult to say what LTV bracket you would fit in and therefore any potential for a mortgage.


How close is this to coming off your credit file i.e. how far advanced is the dispute?

To be honest you would probably need a bigger deposit, but I'm just guessing on property prices here.

There may be a limited number of options - but I couldn't really say more than that as there is only a limited amount of information you have posted, and a lot more would be needed in order to give a proper assessment.

Jonesy_21

Thank you - I have only just started with the dispute and currently if it stays on the file as it appears at present it would come off in November 2010!

We are in the West Sussex area - I have looked on various mortgage calculators and they seem to all suggest we would be able to borrow around the £180k mark...... with the £17k deposit this would mean borrowing £163k - does this help at all?

Thanks once again

herbiesjp

On that income the mortgage amount would be fine.

The deposit would need to be 10% minimum - the default could impact on that the deposit requirement though.

However I have a default on my file registered in Nov 2007

This would fall off your credit file after 6 years, so if you can correct the date to 2004 that would help.


As stated above a lot more information is needed with which a full assessment of your scenario would take place.

A good whole of market adviser will be able to discuss your scenario/options with in greater detail and give you good guidance on what to do next.

Jonesy_21

Thank you so much - you have been very helpful. Can you recommend a good whole of the market advisor or are you not allowed to do that?

My initial thought was to go with London and Country given the reviews they have received on this site.

Thanks once again