Newbie seeking help for mortgage with defaults ..

miss_mollie_2

Hi all,

This is my first post ... so hope I do things right.

I currently have a mortgage with Halifax - and due to come off my tracker deal in about 18 mths or so (was a 5 yr deal).

I would hope to remortgage at that time, if they dont have any good deals for existing borrowers - but the fly in the ointment is I have acquired over the past 12 or so mths defaults on credit cards & 2 loans.

This was due to a relationship breakdown, being left to pay all the bills etc and redundancy all happening within weeks of each other ..

I have never missed a payment on my mge, ever, and do have some new credit card finance (to rebuild my record) - which again is being maintained. (only build a small balance and repay each month).

But I do not have the funds to satisfy any of my existing defaults - so they will remain on my record for the full 6 yrs.

I have about 50k in equity - property valued apx £200k

My questions are ...

1. would the change in my credit profile affect any change to a new deal with Halifax ? (ie would they peform another credit check on myself and if not happy ask me to leave them)

2. if this happened, or I wanted to remortgage, are they any lenders who accept or will consider individuals with defaults

Many thanks in advance for any help that can be provided.

kingstreet

1. No. Halifax product transfers aren't subject to new status checks unless you apply to increase your borrowing.

2. In 18 months time, who knows? It is likely you will struggle to remortgage at High Street rates while your credit file is as it is...

miss_mollie_2

Thank you for your quick response.

No I won't be applying for any further advance, so looks like I shall be better sticking with Halifax. (which I'm not unhappy to do)

Could I ask another question, what actually happens with the 6 yr period is up - and do you have to declare previous expired defaults when you apply for a new mge ?

Many thanks once again ...

kingstreet

miss_mollie wrote: »

Thank you for your quick response.

No I won't be applying for any further advance, so looks like I shall be better sticking with Halifax. (which I'm not unhappy to do)

Could I ask another question, what actually happens with the 6 yr period is up - and do you have to declare previous expired defaults when you apply for a new mge ?

Many thanks once again ...

Expired adverse credit "falls off" your credit file after six years. I'd suggest you obtain copies of your statutory credit files from the three agencies at that point to ensure there's nothing lurking there. Once they are off, there is no need to declare them.

miss_mollie_2

Thank you again Kingstreet , thats a big weight off my mind - I have clicked your "thanks" button too.

TMoose

kingstreet wrote: »

Once they are off, there is no need to declare them.

Although you do have to be very careful with some of the questions lenders ask... I have expired defaults, and the Post Office Mortgage application asks "have you ever defaulted?"...

Whilst there is nothing on my credit files, obviously to answer the above question "No" could be dangerous should there ever be a legal dispute. Unlikely I know, but just something to bear in mind.

Ended up with Santander, and had no problems

Moose

BYALPHAINDIA

AAgh The Halifax !!

If you have read my post then you may understand.

It is not 'Impossible' to acquire a Mortgage with CCJ's.

There are many Brokers etc out there who specialise with people with defaults, CCJ's etc, But they WILL charge you what they want to find you a mortgage.

But I would say (Coming From Experience) make sure your Halifax mortgage is paid in FULL.

If you ever get into arrears, Then honestly, They won't think twice (If they even think at all !!) to instruct their Solicitors to pursue you for the payments.

That's the problem with these Banks - They Don't think !!

And simply go and do what THEY want !!

Regardless of the rules and regulations and even the Gov't !!

All the best to you likewise.

beecher2

I hope you're not going to spam the boards with anti Halifax posts Byalphaindia as it isn't very helpful to posters with specific queries.

BYALPHAINDIA

No Not my intentions at all Mate,

Just 'Advising' them to be 'Cautious' as I would say that I am qualified in 'Experience' to tell them as it is.