Mortgage application

graham13872

Hi, I initially got approved for a mortgage about two months ago with Santander even though I had told them about a default on my credit file. However when I went back to them and told them I had put an offer on a house they then told me my application for a mortgage with them was then declined because of the default. Where do I go from here?

Thrugelmir

Obtain copies of your credit files and see what can be done to improve them. Prior to approaching another lender.

Increasing your deposit and/or borrowing less may help as well.

GMS

Did you get accepted in principle then declined at application?

Abey were accepting adverse credit subject to credit score but recently amended their criteria to exclude any adverse credit.

When was the default and for how much?

graham13872

GMS wrote: »

Did you get accepted in principle then declined at application?

Abey were accepting adverse credit subject to credit score but recently amended their criteria to exclude any adverse credit.

When was the default and for how much?

I got declined in principle but do not understand how the application got accepted in the first instance when there was a default on my credit file. The default was nearly four years ago for nearly 9K but it is down below 8.5 now. It is being paid off but just at a lower rate. If I was to pay off the loan now would I still have to wait a further two years for the default to be entirely lifted off my file? Is there any more roads I can go down? Many Thnx for your reply! :T

Dave_Ham

Abbey used to credit score based upon most recent behaviours and used to be able to overlook an older default if there was some good current.

They cnaged policy about 2 months ago now, where they now automatically decline any clients with a default (which as you know last 6 years)

Paying it off earlier will help for sure, although and this is subject to much discussion the default drops off I think the Payment Plan you are on may stay for 6 years once settled or stopped - there is 2 schools of thought on this.

Depends how quick you want to move, but would suggest you pay this off and then go to a lender which accepts defaults albeit this will be higher rate of interest.

Unless of course you can put OH on mortgage in sole name, but again many considerations here..

Sorry it is not better news, when Abbey changed policy it hit us all hard as I lost about 3 or 4 full mortgage offers when they rescored for clients in chains...

Good luck