Bad Credit, First National & Removing Defaults

frogula

Hello,

Recently applied through broker and got an agreement in principle with First National, due to my bad credit, the rate is rubbish, and whats more they've just put their prices up by 0.75% which makes it even worse. (100% mortgage, fixed for 2 years, 8.09%!!!!!)

Since I got the agreement, I've had a copy of my credit file. I had the following defaults:
Jul 2005 - £540 - outstanding
Aug 2004 - £86 - outstanding
Oct 2001 - £1200 - £300 outstanding, will be settled by next month
and a CCJ:
Nov 2004 - 158 - not settled

I have managed to get the CCJ set aside, and the two most recent defaults removed (not settled) - so they should be gone completely in the next few days.

I can't get rid of the Oct 01 default one at this point, but was wondering, seeing that it is 5 and a half years old, whether any of the "standard" mortgage providers (I was thinking of northern rock) would accept me? My broker doesn't seem that clued up, and never feels like he has time for me.

I am self employed - first years accounts £16k, (split me 9k, my wife 7k)second year is £43k (split me 38k, my wife 5k). I only have 2 years accounts. Do mortgage providers usually average the years, or could i do a forecast for next year (which as i have a long term contract, is set to be around £48k)?

Any help gratefully received... I know I should ask my advisor, but I want to sound it out with you experts before I nag the advisor any more.

Thanks

frogger

danjberry

whats the LTV and how much do you want as this will also pay a big part of who will accept you. just wondering how have you managed to 2 defaults removed? also when you say you have the CCJ set aside do you mean that will be repaid shortly?

frogula

Hi, I'm frogula's wife
The two defaults were removed because they were in dispute before they reached the default stage. He posted about it in the DFW forum if you want to read the whole story.

The CCJ was from Severn Trent charging him for water for the year of 2004 in a property that we moved out of in 2003.

LTV either 95% with 5% gifted deposit or 100%.

We've also been looking at Accord mortgages this afternoon.

danjberry

what mortgage amountdo you require? sorry forgot to ask what are your salaries?

frogula

House is valued at £137k, looking to borrow £130k (95%) or 137k (100%)
Earnings (self employed) are in the original post

herbiesjp

On the income front you appear to be fine - assuming you have no other debts in the background

YOur credit file is causing you the problems at the moment, however with the two recent defaults to be takne off and the CCJ set aside (why was this?) it will improve the situation.

Without knowing your exact details, as your current broker does, it is difficult to say. However there may be some lenders out there that may be more flexible in accepting you on their standard terms

It may be worth while going back to your broker (if they have the time!) or find another fee free whole of market adviser to get a second opinion.

HTH

herbiesjp

On the income front you appear to be fine - assuming you have no other debts in the background

YOur credit file is causing you the problems at the moment, however with the two recent defaults to be takne off and the CCJ set aside (why was this?) it will improve the situation.

Without knowing your exact details, as your current broker does, it is difficult to say. However there may be some lenders out there that may be more flexible in accepting you on their standard terms

It may be worth while going back to your broker (if they have the time!) or find another fee free whole of market adviser to get a second opinion.

HTH

danjberry

if the CCJ was not your fault and is currently being investigated by the water company, put a notice of correction on your credit report as well so a lender can read that you believe this is not your fault and is being investigated. To be honest i agree find yourself a new broker and i belive you can get a better rate then that.