mortgage possible with old unsettled default?

lokipoki

Hi all,

I have recently been accepted for the Lift housing scheme in Scotland and was declined an AIP by building society. They stated that they had little information to say why I was refused.

I have an unsettled default on my credit file from over five years ago. Is this what got me refused and if so... is there anywhere that will entertain me for a mortgage??

holly_hobby

I would certainly think this was the reason, and if you didn't reveal this at the time of application the lender won't be happy that this was not disclosed.

It is a fair time ago, things that will help a lender to be more agreeable to lend are:-

1. for what and whom registered the default i.e HMRC would be definate BIG problem
2. reasonable explanation as to why the default appeared
3. why the default hasn't been settled during the preceeding 5 yrs ?
4. change in circumstances, if it was due to income problems
5. sufficient evidence that you are a client who has since the default, treated their liabilities respectfully and is unlikely to default on future mge payments

This will help in trying to find a high street lender to consider your application - I feel that a mortgage broker or adviser will be the best and quickest route for you to secure a lender with your credit history.


Hope this helps guide you

Holly