Getting A Mortgage With Settled Default

KittyCat1

I applied for a mortgage with Halifax but got refused due to an outstanding default on my credit file.Default is now fully paid up and showing as settled in full on my credit file.I have no other outstanding debts,on electral roll,etc.

Should i ask Halifax to relook at the mortgage application or am i better off going elsewhere.

Also,does anyone know of a mortgage company who are slightly more leniant regarding a settled default before i have the costs of going to a mortgage broker.

GMS

When was the default put in place?
How much was it for?
When was it settled according to credit file?

No easy answer as credit scoring will dictate for most lenders.

Is it a purchase or a remortgage you are looking for?

Loan amount?
Deposit/equity?

Senior_Paper_Monitor

There really should be no costs involved in going to a mortage broker to evaluate your case and establish if worth applying and to who.

.... and I would suggest best option for you in your circumstances (you almost certainly won't be acceptable to many lenders).

KittyCat1

GMS - The Default was 3 years ago for £2,800. Been paying it off monthly through a DCA. Only recently settled a full and final with them.

It would be a FTB purchase. We're buying on a right to buy. Council value £85,000. We can purchase for £69,000. But house is worth roughly £100,000.

Senior Paper Monitor - Looked into a broker and fees were roughly £500??

GMS

Initial consultation with a broker should be free at least.

Best to have a chat with a broker and see what is available.

Senior_Paper_Monitor

I work for a fee charging broker and can fully justify the need for fees on top of commission (procuration fees) to make a living and give appropriate time to a clients needs, BUT .....

1) £500 is fairly high

2) It should never be up front (we charge at time of agreed application - plenty of advice given ahead of this)

3) There are plenty of 'fee free' options out there

4) I know no-one that charges a fee before they look at your case and make at least some initial comment.

Right to buy/ex council house property, recent DCA etc - you definitely need a broker to have a look at this in detail (it won't be easy - and you haven't mentioned deposit/income yet ?)

GMS

Totally agree with Senior. This is a definite case where you need a broker.

It is important to apply to the correct lender, not keep applying to the cheapest. High street lenders likely to decline which will harm your credit score.

do not pay for an initial chat.