Mortgage with 'settled' defaults

aNom

I will be looking at getting a mortgage in the future but have a couple of defaults that I will be settled by then, whats the chances of getting one? I know the rates will be really bad if I get one. I will be looking at borrowing £45,000 on a wage of approximately £16,000.

Thanks.

kingstreet

You've left out the most important facts. What's;-

- the loan to value (ie mortgage amount divided by purchase price)
- the size, date and creditor for each of these defaults?

GMS

There are lenders who will consider historical adverse but they have minimum property values on which they will lend.

Once you answer kingstreet we will have a better idea

aNom

kingstreet wrote: »

You've left out the most important facts. What's;-

- the loan to value (ie mortgage amount divided by purchase price)
- the size, date and creditor for each of these defaults?

£45,000 mortgage / £55,000 purchase price

Defaults

• £903 - 06/11/2011
• £187 - 19/01/2011

kingstreet

One of these defaults is only two months old?

Can you tell us who defaulted you and why, in both cases please?

TBH I fear the worst here. A new default and an 81% LTV is going to be difficult. The purchase price, at only £55k, doesn't help either.

I suggest you contact an independent or whole market broker who will be best placed to tell you your chances. Before you do this it may be a good idea for you to obtain copies of your credit file from all three credit reference agencies so the broker knows exactly what is registered.

DVardysShadow

aNom wrote: »

£45,000 mortgage / £55,000 purchase price

Defaults

• £903 - 06/11/2011
• £187 - 19/01/2011

If I were a lender, I would look at this and think to myself that to buy a house at 55,000 with a loan of 45,000 you would have to have 10,000 of your own money. But with a default of £903, there are only 2 main possibilities here:

• You actually don't really have 10,000 and you are borrowing the money from somewhere without declaring it [otherwise you would have settled the defaults from savings]
• You are at best really dopey with keeping up your payments and possibly you take on commitments you cannot meet

Now, you could surprise us and say that the 10,000 is a gift. But that really does leave the other possibility, that you are dopey with money.

If you do have the savings, get those defaults settled immediately. It is completely cuckoo crazy to have savings and run defaults.

Now, I have been a bit blunt with this, but if I dilute the words, perhaps you might miss the point.

beecher2

When you say 'in the future', when do you mean? Do you have the deposit plus fees saved at the moment, or are you talking about months/years away?

aNom

Hi guys, don't worry about being blunt I'v got thick skin amongst other things. I have defaulted and I'm talking about having these settled in a month or two then looking for a mortgage in 6-8 months.

Thrugelmir

Over a year to clear a £187 default. Not a good sign. As to your attitude towards managing money and your personal finances.

aNom

Thrugelmir wrote: »

Over a year to clear a £187 default. Not a good sign. As to your attitude towards managing money and your personal finances.

I know it's not great

DVardysShadow

aNom wrote: »

Hi guys, don't worry about being blunt I'v got thick skin amongst other things. I have defaulted and I'm talking about having these settled in a month or two then looking for a mortgage in 6-8 months.

Your call, but I would suggest that you settle the defaults and clean your nose clean financially for 2 years before looking for a mortgage.

And don't go rushing here there and everywhere looking for a mortgage. Too many searches will count against you too.