Will I get a mortgage?

JohnZ_3

Hello to everyone and thanks for taking the time to read my query.

We're looking to move house but I have some concerns about whether I'll be able to get a mortgage or not. I'm looking to borrow about £120,000

Positives:

£40,000 savings
£20,000 equity in current house (approx)
£35,000 salary

Negatives:

Late 2004 I had some difficulty when I lost my job and fell seriously behind with my mortgage payments - I was in an agreement with the bank but on checking my credit score I see that they listed it as 6 months in arrears until I was able to pay it off and moved my mortgage to another provider. The last late payment was in December 2004.

I also had some issues with a credit card and fell into arrears before fully paying it off (£450)in August 2004. Unfortunately the bank made a mistake and credited it someone else's account, then then registered it as a default in Dec 2004. The 'debt' was sold on to a collection agency who also registered a default in Dec 2004, though on a later date and for a higher amount. Interest I assume. The bank later on discovered their mistake and correctly credited the money to my account. I only discovered the default when I pulled up my Equifax account to check my rating!


I understand that getting a correction to your credit file can take months, but also understand that the two defaults will rule me out of getting a mortgage? Am I correct in think that they will disappear anyway this December?

dimbo61

Check your credit report with the 3 credit agencies and see what they say first

JohnZ_3

Yes, I've done that, I wouldn't have known about the default otherwise. Equifax (495) was the harshest, giving me only one star, with the default on twice, and saying that my rating is very poor. CreditCall (581) gave me two stars, listing the default once, and Experian (862 direct but 712 on check my file) also has it listed only once, gave me three stars and has my rating as fair. All three had the mortgage arrears noted correctly, all my other accounts were listed as satisfactory, though one had a couple of late payments.

Thanks for taking the time to reply.

JohnZ_3

Would more information help? Or have I maybe put my question in the wrong place? Would the credit card board be better?

I don't have any other debts and am not sure what else to do to improve my situation.