Applying for a post office mortgage. One £25 carphone warehouse default on file!

firsttimers

Hi,

Any advice welcome.
Myself and partner are wanting to make a mortgage application.
He has one £25 carphone warehouse default on his file from about 2 and a half yrs ago.
He paid it off as soon as he was aware of it!

Otherwise files are good.

Any advice?

Should we go for it?

GMS

Call the Post Office and ask them if they are likely to accept.

firsttimers

GMS wrote: »

Call the Post Office and ask them if they are likely to accept.

We did that and they said that they couldn't really tell us until we made an application! They advised that we could put an explanatory note onto the application if we wanted to.

On their website it says in their general lending criteria are:
For last 3 years:

• no mortgage/rent/loan arrears
• maximum 2 consecutive missed payments on credit/store cards
• maximum 1 CCJ to £250, not in the last 12 months
• communications/mail order arrears ignored unless scale/frequency is a cause for concern

These seem quite relaxed to me! We'd be applying for an 80% LTV, £170000 mortgage. Joint income of £69000/year

GMS

Defaults not acceptable is stated on sourcing software.

Due to the small amount you may be ok. Seems silly to ignore a £250 CCJ and not a similar default.

Prblem is at the minute Post Office are picking and choosing the very best cases.

I would call again and ask to speak to an underwriter directly

firsttimers

GMS wrote: »

Defaults not acceptable is stated on sourcing software.

Due to the small amount you may be ok. Seems silly to ignore a £250 CCJ and not a similar default.

Prblem is at the minute Post Office are picking and choosing the very best cases.

I would call again and ask to speak to an underwriter directly

Can e do that before making an application?

GMS

I would try that first personally.

If they say it is something which would not be considered then do not apply.

They may well say it is all subject to credit scoring and a Decision in Principle would need to be applied for.

If it is a definite 'no' then at least you will have saved a credit search.

Have you spoken to a 'Whole of Market' broker? May well be some alternatives available for you if the Post Office will not do it.

firsttimers

GMS wrote: »

I would try that first personally.

If they say it is something which would not be considered then do not apply.

They may well say it is all subject to credit scoring and a Decision in Principle would need to be applied for.

If it is a definite 'no' then at least you will have saved a credit search.

Have you spoken to a 'Whole of Market' broker? May well be some alternatives available for you if the Post Office will not do it.

Our mortgage advisor was fairly pessimistic. This is our only black mark. It's a very small amount. One of those things where he thought he'd cancelled a contract but hadn't done everything he needed to.. then moved house..

My feeling is that we'd have a good chance if an underwriter looked at us.

I just phoned the post office again and the person I spoke to says that as it's under £250 it wouldn't be a problem... however he wasn't an underwriter.

firsttimers

Update - agreement in principle accepted!
Offer on house accepted!

riverboat2001

Just a quick question, how quick/slow were the post office?

donteatthat

We've just got our house with a post office mortgage. I found them very effcient and easy to deal with.

laura19

Just got a mortgage with the Post office, applied 18/10/2010 online and been told today that mortgage offer been sent in the post, so very pleased. It would have been quicker than this but the surveyor/valuer went sick after going to the property on 26/10/10 and could not send the paperwork back to Post Office until this monday. Post Office have been very good at keeping us updated by text/email/phonecalls