Getting a mortgage

donnylisa88

Southernman wrote: »

I think you're better off waiting until you've built up a higher deposit. 95% mortgages are difficult to obtain with people who have good credit ratings never mind those with defaults. Even saving £8k on an £80k home will be more beneficial to you, ideally looking at 15% deposit for better rates.

I suggest you get this default settled and save save save rather than jumping in.

Thank you. Now just to rob a bank or sell my husband (not that I will get much for him lol) so I can get that 15%+ deposit

ACG

Im off to bed now, but you need the letter to state it will show as settled on the basis you pay £xxxx (whatever you agree) with equifax, experian and call credit .

Also, dont waste your time with a 90% mortgage... i would be very surprised if you got one, at best you need to get a 15% deposit. I understand the frustrations of renting (i really do, i sold my home due to the other person on the mortgage being declared bankrupt and having to outlay a small fortune each month when a mortgage would cost a lot less), but its one of those things you cant do anything about.

You will honestly be wasting your time and affecting the credit file if you go for a 90% mortgage (in my opinion). If you do decide to apply for a 90% and get it, feel free to come and tell me im wrong and you told me so - id happily hang my head in shame .

Im not the most experienced mortgage advisor on these forums so im more than happy to hold my hands up when im wrong, but having the odd client with defaults i know how difficult it is to find a lender prepared to lend.

Southernman

Do tell us how you get on

donnylisa88

well some kinda good news, I have spoke to the bank manager this morning, and even though he said a default will affect us getting a mortgage to a point, the fact that its over 3 years old and since then we have been good, there might be a chance or us. The would need to refer it to the underwriters, but aslong as we pass the credit check then we will be approved. Obviously the credit check is the problem, but surely a settled default is better than a default as it shows that we have taken steps to pay the debt off

Dave_Ham

Ok, I am always brighter in the morning's..

What bank is this with - it sounds like an outrageous attempt to get you to apply with them. Your OH has an unsatisfied default, no lender will roll with that - pretending through underwriters or not.

Not wishing to rain on your parade, not sure them credit searching you is the best idea...

If this is your primary bank, it may give you a slim chance but I honestly do not think so...

donnylisa88

Dave_Ham wrote: »

Ok, I am always brighter in the morning's..

What bank is this with - it sounds like an outrageous attempt to get you to apply with them. Your OH has an unsatisfied default, no lender will roll with that - pretending through underwriters or not.

Not wishing to rain on your parade, not sure them credit searching you is the best idea...

If this is your primary bank, it may give you a slim chance but I honestly do not think so...

This is with yorkshire bank. I have just contacted the debt collectors this morning, and basically asked them to put satisfied on his credit report, obviously there answer was no but they informed me that only one credit agency will put partially settled on their files and the others will just put settled. They are currently writing an email confirming everything we talked about in the call especially saying no 3rd party will be involved after this. I was just wondering whether one credit search would be an idea, as we havent applied for credit in ages, and it may give us an idea if you get me

donnylisa88

Dave_Ham wrote: »

If this is your primary bank, it may give you a slim chance but I honestly do not think so...

I do have a current and savings account with yorkshire bank but do not have anything paid into it, only when I have spare money. I have heard that the debt is 'written off' your credit file after 6 years. Is this true? and when does the 6 years start? the day the loan started? the day it defaulted or the day its settled?

Dave_Ham

I understand your sentiments, if you are going to take a punt and I do not advocate this given a default recently settled at best then it would not be the Yorkshire.

Firstly, your primary bank wil have a better knowledge of your recent bank aco!!!! management and would alsways be worth speaking to - unless they are HSBC/First Direct or Nationwide as you will have no chance.

Halifax are the most flexilbe of the mainstream lenders, although still I would not fancy a pass with a default. You may get through their Agreement In Principle, but think it would fall out at full application.

This is all on the assumption that you have found a deposit from family etc. and can get to 15% minimum but probably 20% otherwise at 90 or 95 I genuinely think you are wasting your time and more importantly heartache

Again as ACG said, we are not always right and I would be happy to be proved wrong although do not pin your hopes on this.

I wish you well...