Mortgage help please.....

Gazleeds92

Hello everyone...

My partner and I are about to apply for a mortgage and have one or two problems that we think we will have to overcome so thought I best come and see if I can get some advice before we start properly!!

Baisically a few years ago i was struggling to meet loan payments and eventually the bank told me they would "write off" a large percentage of the money owed should i pay off an equally large percentage of it!

I have done a credit check on myself previously and no that due to this i have a de-fault against my name.

Firstly should I even have a default if I have agreed and paid an amount they have suggested to settle the loan.

Secondly is there anything I can do to support my mortgage application with regards to this problem?!

Any help or advice will be greatly appreciated!

Thanks

GMS

When was the default and for how much? How much are you looking to borrow and what purchase price?

As you did not stick to the terms of the credit agreement then the lender can default you but if you feel this was an agreement and you stuck to it then you could try to challenge it.

Gazleeds92

Around 1000 pound was written off roughly 2 years ago.

Applying for approx 110 000. Having used mortgage calculators on several lender websites with our combined Income we would be able to obtain up to around 145 000.

GMS

How much deposit do you have?

What date was the default registered and for how much?

Gazleeds92

We have enough for 5-10 percent deposit and money for solicitor fees. We are first time buyers if it makes any difference

Thrugelmir

Gazleeds92 wrote: »

Firstly should I even have a default if I have agreed and paid an amount they have suggested to settle the loan.

Unfortunately the answer is yes.

A default occurs when contractual terms are broken. In this case non-payment of the full amount.

So you've gained by having a write off of part of the debt. The penalty is that the lender will publish this on public record to warn other finance companies of the event.

You can't have it both ways. There's no such thing as a free lunch.