Mortgage with 2 defaults help!!??

financehelp123

Hi people,

This is my first post so go easy on me.

A few years ago I got into financial difficulties after university, and I had to enter a debt management plan.

As a result of this I defaulted on an RBS overdraft of £1,065 on 31/07/2010 and settled the debt on 30/06/2011.

I also defaulted on an RBS credit card on 27/03/2009 for £670. This is also satisfied now as well, settled shortly after I defaulted.

Anyway im now in full time employment, and I'm looking to be getting a mortgage soon, what I wanted to know is will it be possible with these defaults on my file, as I dont think I can wait another 3 years to get my own place.

If it helps I checked my credit report on Experian, and my credit score is showing as "Fair 741".

Also in the last couple years not missed any payments etc and not in any debt (apart from credit card i pay off each month in full, and an OD on my current account which i dont use).

Hope someone can help me, thanks!

GMS

Are you still in a debt management plan and how much deposit do you have? How much are you looking to buy for?

financehelp123

No im not in a debt management plan, I am completely debt free.

Deposit is around £6000, would probably try and get it up to about 10k though, which would be manageable by the end of the year for me.

Currently living at home, earning around 22k per year.

Would probably be looking at a property of around 90 000, so a mortgage of say 80 000 ish.

GMS

You would need a 90% mortgage which will be nigh on impossible with defaults on your file, even though they are satisifed.

Have a chat with your bank first to see if they will accept them. Other than that save a bigger deposit. Sorry it's not what you wanted to hear.

financehelp123

No all i really wanted was an honest answer so thanks.

Assuming I could get a higher deposit, how much more would be needed? Also is there anything else I could do? (ie get a guarantor for the mortgage?)

erimus1

Hi there. I think that defaults are worse than CCJ's in most senses - they are not regulate correctly and generally, after receiving one, anybody would be refused most credit, and would only possibly be able to attain stupidly high interest rate credit. Just out of interest, who is your current credit card with, and did you have it when you defaulted on the other two accounts. What is your credit limit in this card?

You need to get a copy of the other two credit reports with Equifax and call credit - sign up for the Equifax free trial to have a look, and also sign up for the free for life Call Credit report at https://www.noddle.co.uk

Have a look at these to see if the defaults are on all of them (I doubt that they are). Once you have all this information you can tailor any credit applications such as mortgages accordingly. Best bet at that stage would be to employ a good mortgage broker who will be aware of which reference file each lender uses.

Your situation doesn't seem too bad as both defaults are with the same institution. Please let us know how you get on with the other reports.

financehelp123

Yeah I will check the other 2.

My credit card is 500 limit with Vanquis. I specifically got this AFTER the defaults in an attempt to get my credit rating better. Is really frustrating, as I dont want these to hold me back at home for the next 4 years!

Also thanks for all the replies so far!

Thrugelmir

financehelp123 wrote: »

My credit card is 500 limit with Vanquis. I specifically got this AFTER the defaults in an attempt to get my credit rating better. Is really frustrating, as I dont want these to hold me back at home for the next 4 years!

Makes little difference. The payment plan needs to age more on your credit file. As it will score badly against you for some time.

At least living at home gives you a great opportunity to build your savings.

Dave_Ham

Depending upon who your bank is (some may give you an opportunity based upon your conduct) then you will need to get to 20% deposit with these defaults still live on your file.

Good luck

erimus1

financehelp123 wrote: »

Yeah I will check the other 2.

My credit card is 500 limit with Vanquis. I specifically got this AFTER the defaults in an attempt to get my credit rating better. Is really frustrating, as I dont want these to hold me back at home for the next 4 years!

Also thanks for all the replies so far!

Did you manage to get get hold of the other two credit files yet?