Mortgage with defaults.

donnacraig1984

i have been renting a house for 5 months now, landlord wants to sell now. i have 1st refusal. The place is ideal for me and the little man. problem is 3 defaults, of which last 1 comes of end of the year. what are the chances of getting a 90% of a £60000 mortgage. Defaults are £6000, £200 and £200. all paid for within 1 year of defaulting and showing satisfied(sp). i earn £21k per year, have 2 credit builder credit cards, with small limits could clear at any time. use them quite alot for credit rating improving purpose.. was looking at going to my credit union - Glasgow CU. Any info would be great.

Thanks Craig.

Wh05apk

At 90% I would suspect minimal chance, at that LTV lenders want as near perfect as possible. How long ago were the defaults incurred and repaid? was there genuine circumstances for the defaults or judt overspending?

donnacraig1984

defaults are over 5 years old they all come of this year. my mum died. and i ended up looking after 2 younger brothers and sister, and losing my job.

Craig

poppy10_2

That's a really sad story, I feel for you. Unfortunately the banks won't take that into account when they consider your application. It's difficult enough to get a a 90% mortgage even with perfect credit, with several defaults I'm afraid the chances are next to nil. Still worth asking your credit union though, they may take a more lenient approach than the big banks/building societies.

catieeb06

I've spoken with underwriting departments from some of the biggest lenders over the last week and as long as you've not had anything else negative, or any other defaults then I would give it a shot.

Don't bother trying with people like Natwest or Nationwide, their credit scoring criteria is far too harsh for your circumstances.

donnacraig1984

nothing else bad. managed to get 2 credit cards all be it poor credit ones. and open a current account.

Craig

catieeb06

My advice would be to go to a broker, they can use their experience to get the best mortgage for u with your credit history.

property.advert

I asked a broker whether 2 charges placed on a property over 4 years ago and paid off a few months later would have much of an impact on a mortgage application for around 70/75% of £500k. No was the simple answer as there was an overriding reason and offers were made (subject to other underwriting criteria).

One thing to consider is that even if you have to pay a higher rate, you need to know at the outset the cost to remortgage as once they fall off your account, you will not be viewed as a bad risk. You certainly do not want a product with long lasting and expensive exit costs if this proves to be your only alternative.