Mortgage with a default (nearly 6 years old)

sarahl1979

Hi

Hoping to get some advice.....my husband and I are keen to buy a house having managed to pay off our debts and save a bit of money towards a deposit. The problem is that I have a settled default on my credit file that is due to drop off in may next year. I appreciate that defaults have a serious negative impact on ones ability to obtain credit, but am wondering if as it is due to be wiped off my file in 9 months we might be able to obtain a mortgage?

We are also keen to do the homebuy scheme due to the price of property in the area we live and am wondering if the default will impair our ability to get accepted on to the scheme?

We are desperate to move but If needs be we can stay where we are for the time being until the default has gone.

Any advice would be greatfully received, thanks.

GaryG77

What is the default for? If its a one-off then i would suggest if you otherwise have a good credit history then it won't matter. I had a six month previous default on an old mortgage 3 years ago & was accepted albeit at the 2nd attempt. The default was a mistake by the bank that has now been removed from my credit file but it was there when i was accepted.

sarahl1979

Hi

It was for £210 for a catalogue that I somehow managed to default on (even though I dont remember receiving any letters from them informing me I had had a default registered against me). Nevertheless the debt was settled the month following the default. The rest of my file seems fine - just a couple of late payments from around the same time (5+ years ago). Since then everything has been paid on time.

Thanks

GaryG77

sarahl1979 wrote: »

Hi

It was for £210 for a catalogue that I somehow managed to default on (even though I dont remember receiving any letters from them informing me I had had a default registered against me). Nevertheless the debt was settled the month following the default. The rest of my file seems fine - just a couple of late payments from around the same time (5+ years ago). Since then everything has been paid on time.

Thanks

I would say you would be fine however it may be better to go to a broker as they can advise who is most likely to accepts based on your credit history.

welly_59

i have 5 defaults, 4 of them around 20 months old, along with a 4 year old ccj and have just been accepted for a 90% ltv mortgage so id say go for it. Find a good broker who can advise you the companies to accept you

GMS

welly_59 wrote: »

i have 5 defaults, 4 of them around 20 months old, along with a 4 year old ccj and have just been accepted for a 90% ltv mortgage so id say go for it. Find a good broker who can advise you the companies to accept you

Were you accepted with Kensington?

OP is looking for a Homebuy mortgage which will restrict lenders and exclude the specialist lenders who would allow adverse. OP's defaults is relatively small, satisfied and a long time ago so hopefully would not cause too many issues.

welly_59

yes it was kensington

sarahl1979

Thanks guys, that puts my mind at ease a bit. Up until now I had completely ruled out even attempting to get a mortgage until next may. At least we still have options. We both have relatively good incomes so may look for something outside of homebuy.

detour

Hi, can someone give me some information on 'Kensington'? I've just had a quick look on their site but could really see any background information about them. Are they a company that are more likely to accept defaults with a mortgage application? I am debt free but have 3 defaults (2 x £10,000 & 1 x £500). I have been told to wait a year after I'd payed off my debts and then look again. So I will be looking to see if I can get a mortgage April next year (2012). I am thinking that I will have to go through a mortgage broker as my defaults run to September 2012, October 2012 (both £10,000 defaults) and July 2013 (the £500 one). Any information on this company would be greatly appreciated. Thanks in advance.

m00m00

Kensington will not deal with you directly, you will need to go via a broker who may be able to find alternative options for you