Mortgage - partner has a default from 2010

tebow

Hi there, yes she agrees she didn't pay the credit card but thought the paying back arrangements were less formal than a default. She rang natwest who saud no you need ro ring this number and so she rang the people dealing with it, arranged a monthly payment but never got any paperwork or a letter nor did she sign anything, which was why she didn't realise it's a default. I don't know much about these thing though...

Thrugelmir

Technically a default is a failure to pay a contractual arrangement to terms.

A lender can impose a default as they wish once the terms are broken. Providing they have made reasonable attempts to seek recovery of the debt.

Defaults are imposed not to punish consumers as such, but warn other lenders of the borrowers conduct.

Before credit agencies took hold. Trade bodies used to keep records of "bad payers" and share the held data. So not a new concept.

tebow

Do you think there's anyone who would consider lending to us? How long do you think we should leave it? Thanks

Dave_Ham

Hi there,

Right some good advice so far. Monitoring and being proactive with your credit report is of huge importance.

Given the challenging nature of a default to a financial institution, combined with its relative recent nature this will be hard. This is compounded with a 10% deposit, which whilst acceptable to the norm but cannot help mitigate the bad credit history.

What are your individual earnings?

Has your partner had any recent credit or does she still have credit cards? If yes how are these conducted?

Also and this could be important, how have you saved the 10%?
Is this saved monthly out of your current account salaries?

tebow

Hi thanks for your interest! She had a store card since(comet, Santander), used this a few times and paid more than minimum each month and paid it all off last month (200 pounds or so). Deposit wise I got this from the sale of the previous house (I had a mortgaged property with northern rock for 10yrs with payments always on time, settled on sale of property late last year) do no evidence of regular savings if that's what you mean?

Thanks again for your help!

tebow

P.S. individual earnings are 24k each full time employed and unfortunately it isn't 10% deposit it's £10k

Thanks again for your assistance!

Dave_Ham

Hi - one solution I can see is you taking out in sole name at as close to 5* single salary.

You are likely to need to lower purchase price expectation or get to 10%, from £10k (got it 2nd time)

Unless you have some parental support and can look at some 100% options or a traditional or new style guarantor option.

Think you may need to get some experienced support, as you have some challenges and sticking to your current plan 10k at 150k as joint application is just not going to work..

tebow

Hi dave ham thanks for your reply. I have posted a new thread on a linked question as the situation changed. I hope you can help on that one too! Thanks again!