Help Neededq

norm79

I am not sure if one of the resident brokers can help?

My partner and I have found a property we wish to buy. Value (max) is £165,500 and we have 10% deposit. We could £2k more if necessary.

I had a default about 4 years ago, mainly as the bill went to an old address. Anyway this is now being cleared, I tried to sort it out at the time as it was an error, but as they would not remove the default I just set up a payment plan.

It seems now this may come back to bite me, does anyone know of a suitable mortgage that I could get or how to work around this.

Cheers for any help.

ACG

Has the default now been cleared? If so when? If its on a payment plan when is that due to finish?

Who was the default with and how much for?

norm79

The default was with HSBC and was for about £4k.

I am paying £50 a month, mainly as it is now interest free and as I say they would not remove it although it was caused by the statement going to the wrong address. If it would help I could clear it instantly. I think there is about £2.3k left.

ACG

Thats quite high. This will probably come across like im having a go (i dont mean ti to) but from a lenders point of view, £4k isnt an amount you could easily forget about and if it is, then would they really want to lend to you.

Also the fact your classing it as an interest free loan in effect (i say that as my gf is in a similar situation but for around £1300, she has a default she is just paying monthyl payments to because there is no interest), it not looked at favourably by a lender they wont lend to you until that has been cleared off and been a good 3-6 months.

Do you have other credit elsewhere? You are going to need something that shows you can borrow money and pay it off responsibly.

Again, if any of that sounds like im having a go, i dont mean it to. My gf is in a similar position and because of it we cant get a mortgage together.

Dave_Ham

Hi there,

As it stands no chance I am afraid. What is your partners credit rating and income like?

No lender is going to entertain you being on there given you have a current debt you are paying less than the actual monthly payment and then look for further lending..

I suspect you knew this, but just your partner on the mortgage could work subject to circumstances...

norm79

I appreciate all comments. Yes I have otehr credit, loan is having the final repayment this month which was initially £10k.

Also have credit cards that I clear full each month and have done for about 2 years.

Thrugelmir

ACG wrote: »

Also the fact your classing it as an interest free loan in effect (i say that as my gf is in a similar situation but for around £1300, she has a default she is just paying monthyl payments to because there is no interest), it not looked at favourably by a lender they wont lend to you until that has been cleared off and been a good 3-6 months.

Which is why defaults are held on record for 6 years post settlement.

To discourage borrowers from playing a game to their advantage.

As the OP says, it comes back to bite you.

Sammie_UK1

Whoops.. posted on wrong thread!

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