Mortgage - partner has a default from 2010

tebow

Hi there, I hope someone can advise!

With a joint salary of 48k and 10k deposit partner and I were looking at a house on the market for 165 (overpriced, would hope to get it for 150-155) and we have been speaking to a mortgage advisor. Partner didn't realise she had a default from 2010 which was from a credit card about 1.5k paid off in 2010. The mortgage advisor said that none would give us a mortgage because of this. Other than this she has no debts and actually a good credit score. I have about 4k debt but a good credit score and have never missed a payment on anything. I have had a mortgage in the past and sold the house. she has never owned a house.

I had a couple of questions that I wondered if you guys knew about...

1) is there really none out there who would consider giving us a mortgage? Is there anyone that might consider us - if so who would you say to speak to?

2) What we are finding confusing is that her default is not showing at all on experian. why might this be? at the time she wasn't fully ware of what agreement she had made to pay back and has no documentation about it. how does she find out more about the default... would it be the credit card company to ask? how does she then know if this is no longer being counted against her in the future - a quick google says this is considered by lenders for 6 years - does she have to then apply to get this removed? should it be showing on experian?

3) do we perhaps just have too much hope that someone would consider lending to us? we thought this was realistic but are we way off the mark?

thanks so much i hope you can help!!

Thrugelmir

tebow wrote: »

What we are finding confusing is that her default is not showing at all on experian. why might this be?

Different lenders use different credit agencies when registering information so do not show the same data. However a default will be detected during the application process.

A default has a serious detrimental effect on how a lender views you as a potential borrower. The rating a credit agency gives is therefore meaningless.

tebow

thanks for your input, that helps me understand a little more about how these things are logged and recorded which is not something I am at all familiar with. any views on the overall situation regarding trying to get a mortgage as well?

Thrugelmir

Suggest you speak to a broker. As they are best placed to approach the right lenders that might consider you.

A lot will depend on the nature of the default.

To help matters clearing you current credit debt would aid your cause. Along with keeping an impeccable credit record from now on.
As time does heal.

GMS

With only 10k deposit you will not find a lender.

tebow

thanks both. i knew that the 10k might be an issue but I wondered how much the default would impact on a lender considering us - what do you think? interestingly the advisor we did speak to thought that the deposit wasn't so bad but they felt that the default would be the problem.

the default was non payment of credit card that after not paying for a few months she rang up the bank and they said nothing to do with us now, she then rang up what she describes as another section (i think probably more like a different agency if the debt gets passed on?) who arranged a payment to come out of her bank directly which went out of the bank without fail until paid off.

Thrugelmir

tebow wrote: »

the default was non payment of credit card that after not paying for a few months she rang up the bank

One sure way of trashing your credit record for some years. Apologies for being blunt but its the reality of the situation.

tebow

thanks - no apologies necessary - i asked for your opinions!

whilst yes it goes against you is this likely to mean that none will lend to us do you think? also would having a guarantor be something that might make up for this of none would lend to us?

any views welcome, thanks for reading!

McKneff

Does your OH agree with the default. How come she didnt know about it.

What were the circumstances, sometimes an error can be made by the companies and the default can be removed if it can be fought and provesd

Thrugelmir

McKneff wrote: »

Does your OH agree with the default.

Is it relevant if she does or not?

McKneff

It can be, if she doesnt agree with it.

My daughter went through this over a year ago and successfully fought, won, got the default removed and received compensation.