Mortgage application defaults

100Diamonds

Hi,I would appreciate some advice from a mortgage advisor or someone who has achieved a mortgage with defaults over 6 years old. My credit files show all present accounts are running well and my credit score is 851 (fair, although I'm not sure why it isn't good considering all accounts are satisfactory now) an old default for £2000 (still paying this) dropped off my file a few days ago and so I am now looking to get a mortgage. Are there any mortgage companies that are not sub prime, that would not take into account old defaults. If anyone could give me names of specific mortgage lenders, I would be very grateful. I suffered a long term illness that severely affected my memory and was unable to keep up with my accounts and so I accrued defaults a long while ago. Not that I expect any sympathy from mortgage lenders. I have waited a long time to clear my credit file, but I still feel at a disadvantage as many applications ask if you have EVER had any defaults.
Thanks in advance

Thrugelmir

100Diamonds wrote: »

( although I'm not sure why it isn't good considering all accounts are satisfactory now) an old default for £2000 (still paying this) dropped off my file a few days ago and so I am now looking to get a mortgage.

If the debt is still being repaid then that account is still in "default".

Do you have savings that you could use to clear this balance?

100Diamonds

I am in dispute with this company at the moment

Thrugelmir

100Diamonds wrote: »

I am in dispute with this company at the moment

Then potentially the account will be still regarded as being in default.

Simon_gloster

If there is a balance and its at status 8 (default), it'll still be kicking around.

Your right in terms of the questoon, have you ever had defaults. You would have to say yes and explain what happened, when and why.

I would suggest at least a 20% deposit for you. Is there £2k left on the default?

DVardysShadow

Thrugelmir wrote: »

If the debt is still being repaid then that account is still in "default".

Do you have savings that you could use to clear this balance?

It is rightly off the credit record as 6 years have passed, settled or not. The difficulty is the question being asked 'have you ever had defaults?'. This will not be solved by rushing to pay it off.

100Diamonds wrote: »

I am in dispute with this company at the moment

An account cannot be in default while that default arises out of the dispute.

Thrugelmir

DVardysShadow wrote: »

It is rightly off the credit record as 6 years have passed, settled or not.

No. As the account can still be marked by the lender as being in default, i.e. outside contractual terms.

An arrangement to pay could last 20 years .

100Diamonds

So what could my next steps be in terms of sorting this out and getting a mortgage? 20% deposit is too high for me, would take years to save.

Dave_Ham

How is it currently showing on your Experian and Equifax credit reports if at all?

100Diamonds

It dropped off a few days ago. See 1st thread.

Dave_Ham

Then unsure what the issue is?

Obviously do not apply to the lender who marked as default as them and only them will keep this data. Check that it dropped off of both Experian and Equifax as lenders typically use a combination of the 2 for mortgages.

Steer clear of the bank in question, Nationwide, HSBC, First Direct, Accord and Santander as they are the more selective high street lenders..