Will a Lender go near us?

up-north-eng

Hi. Looking for a little (a lot of) advice. I currently have 2 defaults on my credit report. 1 runs out this june (300) and the other runs out in 2015 (2300 ish). Both were paid off in full although the larger default took 15 months to pay off after the original default date as i paid 200 per month off the balance. Aside from the defaults, for the past 5 years my finances have been really good, no late payments on anything at all, never more than a pound or two overdrawn on the odd occasion and no real money worries whatsoever. Infact we quite a bit of disposable income despite having 2 children

In the summer my partner and i are getting married and after that we'd like to sell our house (thats in her name) and find somewhere bigger for our kids (we're living in sin). Her credit report is in fantastic shape but she works part time earning very little. I am the main earner and the mortgage would be based on my earnings. We'd have a deposit from the sale of "her" house of around 20-28k and would be looking for something in the region of 115-130k. I earn 33k per year and she earns 6-7k

I'm just wondering 2 things, would we be in a situation where we are going to be able to make it happen without a massive mortgage rate? (or if at all) And does a default go from your record 6 years after the default or the settlement?

Dave_Ham

Hi there,

Good news is that your scenario is probable, although you will need help as unlikely to find your solution on the highstreet.

So long as you can retain a healthy amount from the house sale to be used a deposit, this should also work fine.

This point about dates is debating on here and elsewhere a lot. My view is that the default only stays for 6 years, do check Experian and Equifax at this point that it/they have been removed. On a repayment plan such as yours, whilst the default is removed the arrears/repayment plan markers stay on for 6 years after the end date although in isolation will not hurt an overall credit score that much so long as backed up with more recent positive credit markers.

Hope this helps - good luck with the wedding!

up-north-eng

Dave_Ham wrote: »

Good news is that your scenario is probable, although you will need help as unlikely to find your solution on the highstreet.

So long as you can retain a healthy amount from the house sale to be used a deposit, this should also work fine.

oh well that gives us a little hope, we tried a couple of year ago and got nowhere. but we have a slighlty higher deposit to put down now so fingers crossed. If anyone knows of any lenders that cater to our situation then please do share

GMS

In a situation lik yours you really do not need people quoting lenders at random. You have adverse credit and as such it is vital that you find the correct lender for your situation. A full fact find is vital to find the lender for you. Applying at random may cause you more harm than good.

Firstly have you tried to speak to the current lender to see if they would consider adding you to the mortgage and porting it.

Get copies of credit files from Experian, Equifax and Call Credit. Speak to a good broker and pass the credit files to them.

In your favour is the deposit. Against you is the adverse.

Speak to a broker and see how to proceed.

Thrugelmir

up-north-eng wrote: »

And does a default go from your record 6 years after the default or the settlement?

In your situation, an account remains in default until settled.

The term default applies to an account on which payments have not being paid to contractual terms, i.e, arrears have built up or is subject to a payment plan of some kind.

A default can also occur when a single payment is missed though subsequently made.

Some one could longer than 6 years to repay a defaulted debt. Hence why credit files are mat=rked as such by lenders.

up-north-eng

GMS wrote: »

Firstly have you tried to speak to the current lender to see if they would consider adding you to the mortgage and porting it.

Get copies of credit files from Experian, Equifax and Call Credit. Speak to a good broker and pass the credit files to them.

The current lender is santander, which basically means its a no go, as by their own admission, they're pretty strict nowadays.

I have an Equifax account that i check regularly, i know its only a guide as the lender will score things differently but it rates me as "fair" (376 if i remember correctly). This may improve slighly once the other default drops off in a few months.

To be honest we plan on going to our local broker company anyways but thought i'd canvas opinion on here just incase. If we cant get moved it will have to be stick or twist i think. Stop in our cramped house, or sell up and rent somewhere bigger and bank the cash till we're in a better position

ACG

As the other brokers on here have said, there are probably a few options available to you.

Im not sure any would be the main high street lenders though.

If you take your credit reports to a broker, i would be fairly confident they could find you something.

27col

"Living in sin" That's a bit of an antiquated concept nowadays.