mortgage refused

wig887

hi i have my mortgage with halifax which i have had for about 6 years with around £85'000 left to pay.when i took the mortgage out i found i had a (settled)default on my credit file from a halifax bank account i was told this was no problem as itwas settled and got the mortgage no problems.recentley we wanted to move house so went to see the advisor and i was told that due to the default (still on my file till november next year) i wouldnt be able to lend anymore.i feel that they are being very unreasonable as the default is 5 years old my credit file is good apart from the default and i have never missed a mortgage payment.i dont know what to do next should i go to the f.s.a ???

Elliejayne

I'm afraid I don't know but that is very harsh. This credit scoring business is awful.

Thrugelmir

wig887 wrote: »

i dont know what to do next should i go to the f.s.a ???

The FSA cannot force a lender to advance you money. If you do not meet your lenders current lending criteria then your only option is to vote with your feet. Apply elsewhere.

Littlemadam83

totally agree with the above. It is so harsh, but they are under no obligation to lend you anymore money or do anything other than what they have already agreed.

Maybe speak to an advisor who will get you in touch with a mortgage co that wont mind your default.

xxx

opinions4u

wig887 wrote: »

hi i have my mortgage with halifax which i have had for about 6 years with around £85'000 left to pay.when i took the mortgage out i found i had a (settled)default on my credit file from a halifax bank account i was told this was no problem as itwas settled and got the mortgage no problems.

That was then. The world of lending has changed.

recentley we wanted to move house so went to see the advisor and i was told that due to the default (still on my file till november next year) i wouldnt be able to lend anymore. i feel that they are being very unreasonable as the default is 5 years old my credit file is good apart from the default and i have never missed a mortgage payment.

This is now. They have limited funds to lend, and they would rather lend to those with a cleaner history than you. It's a very real example of how the Credit Crunch has affected your circumstances.

i dont know what to do next should i go to the f.s.a ???

A regulator cannot compel a lender to give you a mortgage. A complaints body (the FOS) cannot compel a lender to give you a mortgage.

Your choices are:

1) Wait until the default drops off your credit file at year 6.

or

2) Find an alternative lender.

If it was me, I'd head to the nearest reputable mortgage broker and find myself not just a mortgage, but one that's probably better priced than the Halifax version.

GMS

How much was the default for?

herbiesjp

Also, what mortgage amount and property prices are you looking at?

Conrad

I'm fairly sure a lender can be found for this - speak to a decent broker.

wig887

the default was for about £800 will be needing a mortgage of about 110'000 as i've got about 39'000 equity

opinions4u

wig887 wrote: »

the default was for about £800 will be needing a mortgage of about 110'000 as i've got about 39'000 equity

Perhaps the £25k increase in debt worried them more than the default?

Did you keep the new application under 75% LTV?