10% Deposit with Default

vzbfhr

Hi guys

title says it all really,

Will it be possible for me to get a mortgage with a 10 % depoist with a 2 year old CC default?

Thanks

Dave_Ham

Hi there,

How much was the default for and has it been repaid in full now?

vzbfhr

default was only £600 i think and yes, been settled for 6 months.

Dave_Ham

You need to check as this would potentially be a deal-breaker.

If satisfied then other things being equal possibly would be ok to get a mortgage..

Without being biased, you would be better suited to getting a mortgage broker or check criterias yourself first if comfortable...

handytips

You have no chance at the moment on a 10% deposit as the indemnity insurers will not go near you. when the default has been settled for 3 years that is the time to start looking. Sorry but thats the truth.

Dave_Ham

I don't necessarily agree. I think it will be challenging and wholly depends upon what is in the background although given the date and value of the default and subject to any second person being on the mortgage, I would not rule it out of hand.

ACG

I agree with Dave, there are lenders who will touch you but i think they are in the minority.
If the defaults are over 24 months then i think you will find something. I also agree with Dave in that you would be ebst going to a broker. The only lenders i can think of deal with advisrs only...thats not to say there arnt lenders who deal direct - i just cant think of any of the top of my head.

vzbfhr

Thanks guys

As a bit more info

Brand new property £170000
17000 depoist from sale of existing home

I earn £35000. Wife £30000

My credit could be better, wife's excellent.

Cheers

Dave_Ham

Oh - so here is the kicker - 90% new build for non first time buyers. Also please mention now or forever hold your peace if this is inclusive of a 5% builder incentive?

There is still scope, am I to assume you were both on the current mortgage and have you had any new unsecured credit since default?

vzbfhr

Well we haven't got that far yet. Wanted to see if it was viable to get a mortgage first before we showed interest.

So without wanting to be stupid, 5% from builder could take us up to 15% deposit?

And yes both on mortgage (however wife is still maiden name if that matters?) and both have had new cars within the last 6 months.

Dave_Ham

Ask as many questions as you want.

Yes it is achieveable to pay 10% yourself and 5% from the builder, although will preclude a fair few lenders. I thought you may have been approaching this as 5% you and 5% builders which will be as easy to source as the Chief Exec of Bank Of Ireland having dinner out this evening...

The cars are a good indication that your credit rating should be sufficient (although I would put wifes first on application - some junior advisors always forget this can help) although then draws the question of affordability and income multiples if you both have other unsecured credit hoping to come along to the new house....

Do-able but challenging I would rate this as if you stepped into my office..