85% mortgage with defaults but no debt?

detour

Hi,

Does anyone know if I could get an 85% mortgage with 3 defaults?

I currently have 3 defaults showing on my credit history 2 clear next year and the third in 2013.

Default 1 - clears in September 2012 (default amount - £10,000)

Default 2 - clears in October 2012 (default amount - £10,000)

Default 3 - clears in July 2013 (default amount - £500)

I have paid all of my debt and apart from a £350 credit card and a £250 overdraft (I am using these to improve my credit score) I am debt free.

My credit score is currently around 900.

We have around £16,000 savings for a deposit.

Thanks for any information.

GMS

It could be possible.

What are your incomes?

leereni

How did you receive a credit score of 900 with three defaults. I really don't understand these credit scores. I've got one default which is 4 1/2 years old and late payments on a loan which is 5 1/2 years old and have a credit score of 600-650.

GMS

Credit scores are pretty much useless. Until the credit reference agencies start to lend money they are irrelevant.

Far too many people get hung up on them and lose sleep over them. The data showing on the credit reports is more important. Lenders have their own scoring systems.

leereni

There should be some clear guidelines so people know where they stand. That's why these companies can make money for basically processing information.

CLAPTON

using your overdraft will hinder any mortgage application as it's generally seen as some-one either living above their income or financially disorganised

using a CC properly will help your credit rating but make sure you are paying in full

leereni

Well, I have one default for £300 which was settled 5 1/2 years ago, a loan which was settled 4 1/2 years ago and had late payments. Apart from that I've been fully up to date for the past 2 years. I have a salary of £37000 plus approximately £10000, applied to my bank, who I've been with for over 10 years and got declined for a credit card.

property.advert

I went through this last year as I've some history which would still show up and the upshot was that any lender using a computer scoring system will just automatically decline. Same with only minimal human input as it is a black and white, yes and no equation.

When I approached a broker with a hypothetical scenario not too dissimilar to yours, a large deposit (25%-30%) and some years since the problems (4 years used), a decent explanation for the defaults and with a not too high salary multiple (between 2 and 3 used), the answer was positive at normal or very near normal rates.