Defaults & mortgages - advice

hlj83

Hi all

This is my first time here, hope everyone is well.

I'm looking for some advice re mortgages. I'm about to purchase my first house, my credit rating is just below average and I have one default (just £5 and there is a "legit" reason - I moved house and it was the one creditor I forgot to inform). I have a substantial deposit to put down, roughly 20 - 30% of the house price.

I spoke to financial advisor this week, she said that this default would stop me getting a mortgage. But, I have spoken to other people who said it won't stop me, I may get unfavourable terms but I can find a reputable lender.

Which is correct? Will my high deposit work in my favour?

Thank you in advance! :-)

Dave_Ham

A few more facts would be helpful, although given your deposit and a decent broker and there will be a solution which does not involve stupid rates..

When was the default registered? have you paid it and settled it - stupid for the amount I recognise..

Have you had unsecured credit since this default - credit cards, loans or overdrafts..?

Are you buying on own or joint?

Should do for now...

hlj83

Dave_Ham wrote: »

A few more facts would be helpful, although given your deposit and a decent broker and there will be a solution which does not involve stupid rates..

When was the default registered? have you paid it and settled it - stupid for the amount I recognise..

Have you had unsecured credit since this default - credit cards, loans or overdrafts..?

Are you buying on own or joint?

Should do for now...

Thanks Dave, to answer your questions --

The default was registered around 6 months ago and it has been paid

I have 2 credit cards, one with a £3k balance, the other £100. I have a store card which is nearly paid off and no missed payments. I have an overdraft which is always paid each month, it is in the black most of the time.

I am getting the mortgage on my own.

Thank you again!

Dave_Ham

Subject to income, employment etc. a good broker or a local, building society will do this for you - other things being equal.

You would be better off paying off the credit card with 20-30% deposit and then just have 15-25% deposit

As it is only 6 month old, the traditional high street banks will kick you out at credit score as I suspect you have already found out...

Thrugelmir

hlj83 wrote: »

I have an overdraft which is always paid each month, it is in the black most of the time.

Suggest you use your savings to correct this and learn to budget without using your overdraft as much as you can.

A lender will detect this pattern on your credit profile.