Mortgage - 3 years after a default

Rm-ca

Hi there, i wondered if I could have some advice!

My hubbie has a mortgage, the balance is 53k.

We need to sell to buy somewhere bigger and this house is one the market for 140, we are thinking we will get 130k for it. This leaves us with (after fees) about £70k.

We need to pay £177k for the house that we need (large family)

I earn 26k a year, hubbie is 3 yrs self employed with 3 years accounts and profit is about 10k for last year.

I had a 2 defaults in Oct 2008 when Hubbie was made redundant and he had 2 from the same time, they are all settled now.

He's mortgaged with principality and they say no due to my default although that was last year and my credit score has improved since then.

Would anyone know if we would be likely to succeed?
also, which would be the best bank/BS to approach?

Thanks in advance!

Becky

nick_

Hi Becky,

some of the mortgage adviser's on here are very good so i wouldn't want to sway you one way or another however thought i'd share my experience (so far - not completed yet).

i have 1 settled default on my credit score from about 18 months ago - more being careless with a mobile phone bill than anything else but such is life. i was rejected from HSBC (they gave me a cryptic unrelated reason for decline) and Nationwide. All a bit disheartening.

Anyway, i applied to the halifax with not much hope however received an offer of a mortgage last week - obviously the default was less of a factor than for some of the others. I think you suffer ever so slightly with rates compared to some of the more picky lenders but beggars can't be choosers i guess.

Sorry it's not a definitive answer to your question however i just wanted to highlight that there are some positive stories to be had on here!

ACG

You dont say how much the defaults were and when they were satisfied.

That being said i would think there are a few options open to you. But i think you need to speak to a mortgage advisor.

Rm-ca

Thanks for the replies! well done Nick! there is hope then!

Hi ACG, all the defaults were from between 2008-2009, for my two, one was for £90 and the other £700. the £90 one was satisfied in 2008, the £700 was satisfied in December last year. the other two (hubbies) for for £600, both satisfied in 2010/2011.

thanks for any advice you can give

GMS

Rm-ca wrote: »

Thanks for the replies! well done Nick! there is hope then!

Hi ACG, all the defaults were from between 2008-2009, for my two, one was for £90 and the other £700. the £90 one was satisfied in 2008, the £700 was satisfied in December last year. the other two (hubbies) for for £600, both satisfied in 2010/2011.

thanks for any advice you can give

When was the latest default in 2009?

Speak to a broker. May well be options for you. It is important to apply to the correct lender for your circumstances. Applying at random to lenders will do more harm than good as your credit score(s) will be affected.

andyp774

With which credit agency are they showing live? Have you checked with Experian and Equifax. If they are with Equifax and not Experian then you should be ok with Nationwide I would have thought. I was in a similar position myself had one default going back to 2006 and admitadly waited till this dropped off my credit file before applying for any mortgage. We did this on Friday last week and gor accepted fine with Nationwide thru their Save To Buy which is an excellent deal that they offer.

Have a look on both Equifax and Experian post back.

ACG

I would stick to what i said then in my last post.

You have a good deposit, your incomes support what you need, your defaults have been satisfied for atleast 6 months - there is quite a lot in your favour.

I would say you may as well forget the likes of HSBC, First Direct as theyre quite strict.

Speak to a mortgage advisor, they will know who to avoid - this will save your credit file from un-necessary (for the life of me im not sure if thats spelt correctly) searches.

Dave_Ham

I like many brokers have got clients mortgages in much harder situations that yours.

Forget the top tier products, although there will be a solution but do enlist a decent broker...

Good luck

Rm-ca

thanks for the replies! really encouraging!

can i ask, i have got the default info and credit scores from credit expert, do i need to check with another place, like equifax too?

also,. with the mortgage advisors, do i pay the fee for that?

thanks in advance

Dave_Ham

Always, always get both Experian and Equifax..

Different lenders use different Credit Referencing Agencies and in the current climate many use both.

In terms of the fees, some will charge some will not. I quite often use the same analogy here though, if a fee charging broker secured you a better solution that easily paid for the fee then surely a better solution?

Be careful of the google marketers who will want an arm and a leg for this sort of mortgage application. All regulated firms have to be fully transparent with fees though, but do ask.

Try and get a recommended broker and one that has had exposure to understanding credit reports and where to place this business. A typical approach one of the big boys manner will hurt your credit file further..

Good luck

Rm-ca

Thanks Dave. Really appreciate your advice