Just been offered a full mortgage with a default.

paye

Had some great news the other day I had my mortgage approved in full , the thing that amazed me was that I had a settled default notice on my file which drops of next year. I thought this will cause me some problems but touch wood it hasn't. The settled default amount was for £454.

So out of curiosity why didn't the lender pick this up?

welshy_2002

Possibly due to it being a small amount, 5 years ago and you having a meaty deposit.

Out of curiosity, had you added any txt to your credit file to smooth the default over? (like 'I was a first year student and found it hard to keep track of my spending... blah blah)

QTPie

Bet that you lender isn't Britannia then.... No defaults and hefty 60% deposit is turnng into he'll on earth: they obviously think that we are guilty of money laundering....

QT

poppysarah

What lender?

neas

We got a mortgage with britannia, clean credit file, 33% deposit... no problems getting mortgage.

Must be something else.

PasturesNew

They might pick it up ... between exchange and completion. It's been known.

QTPie

neas wrote: »

We got a mortgage with britannia, clean credit file, 33% deposit... no problems getting mortgage.

Must be something else.

60% (£425k) deposit. £95k of that is gifted (correct forms completed to declare that).

They seem fixated on money laundering... we have proved that we have the money, but they want to know where it has come from... Most recently they demanded a copy of the final statement of sale from our previous property (we sold to be chain free buyers) and a copy of my father-in-law's bank statement (they have a copy of mine showing the deposit if £95k from him AND a copy of the CHAPs transfer receipt to show the transaction, but apparently that isn't enough). Next they will be asking my father-in-law to prove his finances and where he got the £95k from....

When we applied, the mortgage advisor said it would be quick and straightforward.... No such thing! Every week they reQuest further info (which we fax immediately), but they won't reassess until the next week, then they decide the next information they want (like a copy of my husband's passport: well into the application, they suddenly realise that he has to prove that he is a British citizen...).

Britannia appear to be a disorganised, inefficient mess to me. Just hope to come out of it with a mortgage (they do several credit searches each time they reassess and this us decreasing our credit ratings - from optimal - by the week ).

QT

neas

Well

I think you have to account for most of the funds with an explanation.

I had a less sum but still had to account for it. We ammagamated the funds beforehand into a savings account... and had to obtain statements for each bank account the money went into. Essentially you've got to prove it didnt just come from thin air... in that you've held it for a good couple years.

Was esier for us as we had money in iSAs (mainly) and due to the 3.6k per year limit it was obvious we had saved over the years.

IN all honesty its probably the 'gift' that you have problem with... as whose to tell its not !!!!! laundering money? :O

QTPie

The savings were all proved (via copies of statements - been in various savings accounts for a little over a year) and the gift was declared (the giver, FIL, had to fill out and sign a gift declaration form to say that he had the funds and it was a gift and not a loan) all at the time of application. None of this was enough...

QT

neas wrote: »

Well

I think you have to account for most of the funds with an explanation.

I had a less sum but still had to account for it. We ammagamated the funds beforehand into a savings account... and had to obtain statements for each bank account the money went into. Essentially you've got to prove it didnt just come from thin air... in that you've held it for a good couple years.

Was esier for us as we had money in iSAs (mainly) and due to the 3.6k per year limit it was obvious we had saved over the years.

IN all honesty its probably the 'gift' that you have problem with... as whose to tell its not !!!!! laundering money? :O

bobbadog

FYI, I got a mortgage with my partner last year, with Britannia - 90% mortgage and I had a default on my credit file for £606 (which has now dropped off) x

jockosjungle

Not sure if its standard for all lenders but if you look on the Post Office site, what they consider to be a clean credit history allows a default up to £250 and minor catalogue debts. You don't have to be squeaky clean, but a few quid with a phone company a few years ago isn't going to necessarily destroy your chances if you can show a decent deposit

R