Can I get a mortgage with previous defaults on accounts

giddykipper

Hi

Does anyone know if you can get a mortgage with previously settled defaults (on unsecured loans/cc's etc)?

I have defaults from 3 yrs ago, I'm hoping to settle the accounts when I sell my house (in a couple of yrs) then move in with my parents for a few months.

Would I then be able to get a mortgage the same year as the defaults had been settled??

Thanks, Jo

GMS

It will depend on when the defaults were registered and for how much, and how much you are looking to borrow against the purchase price of the new property.

giddykipper

GMS wrote: »

It will depend on when the defaults were registered and for how much, and how much you are looking to borrow against the purchase price of the new property.

Thanks, the defaults were registered 3 years ago, I'm hoping to sell in a couple of years.

There are 6 defaults (from 6 different lenders) and they total around £60k.

I'd be looking at buying a property for about £150 with a £20-£25k deposit.

Cheers, Jo

giddykipper

PS/ I've never even been late with a mortgage payment ..... and the mortgage I'm hoping to get would be in joint names with OH (as opposed to current one being just my name).

Oh another Q ..... is it true that credit history's only show 6 yrs ....... so if I settled the defaults when I sell my property in say 2 yrs, 1 year after that, lenders wouldn't be able to see the defaults anyway? Thanks

GMS

As of today you would struggle with those kind of figures.

In 2 years time who knows what the mortgage market will look like. It has changed beyond recognition in the last few years.

Settled defaults will look better than unsettled but the amounts involved would almost certainly mean a failing of credit scoring.

You may find yourself needing to wait until the defaults drop off before getting a mortgage.

When the time comes you really should speak to a 'Whole of Market' broker. Your case would not be one for a high street lender.

giddykipper

Thanks ..... so will the defaults 'drop off' after 6 years?

May it be a case that we can get a mortgage from a specialist who will charge higher interest rates but then a couple of years into the mortgage we could re-mortgage for a better rate??

Sorry for all the Q's ..... and I know this is all a bit hypothetical but I just need to know if its even possible.

Thanks, really appreciate you replying. Jo

needtofightback

Hi, All defaults drop off after 6 yrs whether they are settled or not. Seems to me that as they are already 3 yrs old, & you are not going to sell until a couple of yrs anyway, THEN move in with parents - if you make that a bit longer you won't have any defaults on your file anyway, so presuming nothing else adverse gets added, you'll be able to go anywhere for a mortgage!

giddykipper

needtofightback wrote: »

Hi, All defaults drop off after 6 yrs whether they are settled or not. Seems to me that as they are already 3 yrs old, & you are not going to sell until a couple of yrs anyway, THEN move in with parents - if you make that a bit longer you won't have any defaults on your file anyway, so presuming nothing else adverse gets added, you'll be able to go anywhere for a mortgage!

Oh wow ..... thank you ...now I am liking the sound of that!! It may even be 3 yrs before we sell, have to do it all up first and as I'm in a mess financially (in a dmp) - its taking a lot longer than I first anticipated!!

If I can sell our house and get a mortgage once the defaults have dropped off (I'll deffo settle all outstanding debt with the proceeds from the house sale) then we can have a fresh start with a new house and no debt!!