Mortgage (85%) with 1 default

badger8

Good Afternoon,

I wondering if someone can help me or point me in the right direction? My partner and I recently applied for a mortgage through a Mortgage Broker and before anything went too far I explained that I had a default on my credit file. The default was for a £207 mobile phone bill. It deafulted on 27/10/2008 but I wasn't aware of this until I received a CRA letter on the 2/02/2011. I paid the amount off straight away when I got the letter. I'm actually in the procress of trying to get this removed. Anyway, this is the only scar on my credit history and I've got a rating of 924 on experian and a excellent score on Equifax. We've recently been turn't away from Abbey due to that stupid default. My broker has told me tat he can't help and nobody will lend to us!!!

I've since spoken with John Charol Mortgage Brokers and explained the situation. The person I spoke with tole me he was "95%" sure he could help. I can't seem to get the other brokers message out of my head though. Do you think I'm now going to have a massive problem?

p.s the experian report says it defaulted on the 27/10/2008 but the "update" is the 7/03/2011 (when the payment was recorded from the 02/02/2011). Do the mortgage comapny see that as a deafult from 3 years ago or a year ago?

Sorry for all the questions.

Tim

Senior_Paper_Monitor

My votes with the John Charcoal man.

Abbey should probably not have been first choice unless there is a need based on affordability

Knowing the Abbey system response would be helpful as it would give a clue as to the problem (which may not just be that default)

badger8

Thank you for your help, it was based upon a 90% mortgage. We can stretch to a 85% mortgage on a £160,000 property.

Thrugelmir

badger8 wrote: »

Do the mortgage comapny see that as a deafult from 3 years ago or a year ago?

Date settled is key to a lender. As that's when the clock starts again in terms of building a clean record.

Time settled in general is viewed as the attitude by the borrower towards a debt. Amount is irrespective. As it comes down to personal responsibility.

KingElvis

With a default settled in the last year you're going to struggle for a vanilla lender.

badger8

Now I'm confused.

for example - Defaulted on 31/03/2006 - credit file updated 11/05/2008

I thought that was going to come off my file on the 31/03/2012 and not the update date.

ACG

Your "Broker" sounds like hes given it a try it didnt work so nobody can do - this makes him look like hes not lazy/useless/whatever he would say.

I would agree with John Charcoal in that there is a pretty good chance you can get a mortgage. Your broker should have checked this with the lenders before he bothered to make an application and get that on your credit report.

badger8

Thanks ACG. It's so frustrating and I'm partly to blame for not checking DD leaving my account when I moved house. Just seems silly for £207 which was settled as soon as I knew.

ACG

I know of 1 lender atleast that ignores 1 default from phone companies - i cant remember the value they ignore but i suspect tis probably lower than that.

Get a proper broker onto it and you should be alright.

badger8

Are you allowed to say the name of the company ACG?

Meeper

Precise Mortgages (only available via certain distribution channels) will do 85% LTV with defaults, if that's of any help?