Mortgage with a default

Wheeler01

I think I know what the answer to this question is but be good for someone to confirm.

I have a default dated July 2010 re a mobile phone company for £370.

I have tried getting the default removed via MSE but as the bill was paid for 1 year they say its my debt.

Will I be able to obtain a mortgage with an unsettled default on my credit report?

ACG

Have you had other credit?

If thats the 1 bit of credit you have had and its defaulted then you are going to struggle. If however you have had other credit then there is a good possiblity you could get a mortgage yes...probably not with high street lenders but there are other people out there. You should maybe go and speak to a mortgage advisor and see what they can find after doing a factfind with you.

kingstreet

It'll depend on the loan to value.

If you have a 20%+ deposit, you'll probably be successful with an application once two years has passed using one of the adverse credit specialists like Kensington.

If you're looking for 90% at high street rates, I'd say you're going to struggle.

An independent or whole market broker, once they have all your circumstances to hand should be able to produce some options for you depending on the above.

Dave_Ham

Sorry I mean this genuinely but why try and get a mortgage if you are unable to settle the £300 odd debt?

If you are appealing this, then ensure you get it all in writing.

There are lenders who do not credit score and then subject to the rest of your circumstances would still potentially consider you but they manually underwrite the cases so would need to all stack up...

Wheeler01

I was looking at the part rent - part buy scheme as shares start from 25% usually around £47000 as its to expensive in the south east for me to purchase a home by myself.

I have other credit, 2 current accounts - all green
4 credit cards sub prime - all green, balances on 2 of them totals £600
1 mobile phone contract O2 - green
1 store card Next - green
catalouge - green

Its just the default that makes my credit look poor.

ACG

I think there are lenders who will accept you.

I dont think there will be many, they will probably be more specialised lenders...which will probaly mean not as cheap as a run of the mill lender but it will get you onto that ladder.

Wheeler01

Dave_Ham wrote: »

Sorry I mean this genuinely but why try and get a mortgage if you are unable to settle the £300 odd debt?

If you are appealing this, then ensure you get it all in writing.

There are lenders who do not credit score and then subject to the rest of your circumstances would still potentially consider you but they manually underwrite the cases so would need to all stack up...

Dave, the £370 is not mine!! If you think it would help I will settle it but I really begrudge paying off someone elses debt!

Do you think if I settle and ask nicely they will remove the default?

Dave_Ham

Ok I missed that part apologies.

On your credit file, there will be a specific department of the said company that deal with this. You need to write to them giving as much information as possible. You may have to go to the Ombudsman to enforce as guessing you have already tried to deal with them directly?

Even more reason to think about a lender that manually underwrites, or one that you can communicate with.

As an example if your bank account and credit cards are nicely run then these can be used as backup to the above.

Is this why you have sub prime credit cards or is there another issue in the background?

kingstreet

Wheeler01 wrote: »

Dave, the £370 is not mine!! If you think it would help I will settle it but I really begrudge paying off someone elses debt!

I'm sorry. I must have missed something. Where in your posts does it say it isn't your debt?

Wheeler01

Dave_Ham wrote: »

Ok I missed that part apologies.

On your credit file, there will be a specific department of the said company that deal with this. You need to write to them giving as much information as possible. You may have to go to the Ombudsman to enforce as guessing you have already tried to deal with them directly?

Even more reason to think about a lender that manually underwrites, or one that you can communicate with.

As an example if your bank account and credit cards are nicely run then these can be used as backup to the above.

Is this why you have sub prime credit cards or is there another issue in the background?

Dave

Yes that is the reason why I have sub prime CC's. I was refused credit and didnt know why nor did I know about credit reports. Someone got a Barclaycard in my name, BC were great and it appears no where on any report. The mobile company are totally the opposite. I am an O2 customer have been for years and I gave loads of info to the other one but they said it was paid for a year so it must be yours!! It certainly was not but I gave up fighting.

One of the credit cards reduces it rate over 3 years from 29.9 down to 17.9, I pay this off every month so hopefully when its down I can apply for better ones.

GMS

If it isn't your debt why have you a default registered because of it?

Do you mean you took out the phone contract for somebody else who didn't pay it?