FTB Mortgage Decline due to default

Smith15

Hi All,

I am 22 and trying to buy my own place. I have had an offer accepted on a flat for 129k and had a mortgage in principle. I have a salary of £30,100 and 15% deposit
Once I paid the survey fees the mortgage company Halifax then declined me as I have a settled default on my account for £400 back in March 2010, I know it's really silly of me to have defaulted on an account but it was difficult circumstances.
I am so worried that I will now lose my flat if I dont find a lender soon. What are my chances of getting accepted by any lender because of this default? I have a broker but he hasn't been in contact very much
Help please,

Thanks so much

aimzrabbit

id sack your broker and go with someone like L&C or any independent whole of the market broker

Smith15

Thanks for your help. I am thinking of changing broker, he is an independent one but he had my chasing experian and equifax for all these reports and now I have had a decline he hasn't been in contact.
Just not sure if I will even get a mortgage at all because of this silly default!

harvey115

It depends what have you done with the default, have you settled it at all?

Since the default appeared in your file in the last 2 years, there should be a possibility.

You should get in touch with a broker specialising in bad credit history. Try L&C, they might have the right person for you.

Halifax may have taken the case if it was presented correctly. They are the most lenient high street lenders.

Best of luck

aimzrabbit

i got a mortgage 3 years ago with a 6K default , i needed a 20% deposit

i used the beacon / redstone as a suprime deal

they are not around anymore for new mortgages but there are replacements

i would suspect companies like Leeds Building Society may offer you something but I am not a mortgage advisor

i dont understand how you could have missed your default if you got all 3 CRA reports ......but if you didnt put in all your addresses to the CRA's then they only show the history when you apply for your report so if you missed of an addresss that you have credit history it will only show up when they do the full search

Smith15

I paid off the default a month after it happened so all settled back in March 2010. I did know I had the default but I didn't have anyone to ask for money to help me as I live here alone.

I hvae asked l&c to give me a call back today so fingers crossed they may be able to help....

aimzrabbit

good luck fingers crossed

let me know what they are like I'm going to try them next month when i re-mortgage

harvey115

Just be upfront with your situation and there should be a solution.

Best of luck.

Smith15

aimzrabbit wrote: »

good luck fingers crossed

let me know what they are like I'm going to try them next month when i re-mortgage

Yes of course will let you know how I get on

Smith15

Okay so new broker said that I can only be offered with a lender who charges 6.5% at 85% LTV as part of a 2year fixed mortgage with subprime lender.
I really don't know what to do, I live 100s of miles away from my family and am alone so I dont know whether to do this mortgage and be a bit hard up for 2 years and then my default will be off my credit report and apply for a cheaper mortgage or to continue renting for next 2 years but this is costing my similar to a mortgage amount...

help please....

harvey115

Smith15 wrote: »

Okay so new broker said that I can only be offered with a lender who charges 6.5% at 85% LTV as part of a 2year fixed mortgage with subprime lender.
I really don't know what to do, I live 100s of miles away from my family and am alone so I dont know whether to do this mortgage and be a bit hard up for 2 years and then my default will be off my credit report and apply for a cheaper mortgage or to continue renting for next 2 years but this is costing my similar to a mortgage amount...

help please....

I am afraid it is your decision.

Rent >= Monthly mortgage repayment

Even if the above is true it does not mean that buying a house is better, it simply means you can make ends meet if you are to buy a house. As a house owner there are far more responsibilities as compared to renting i.e. maintenance, selling if you do not need it etc. However if you are renting, you can simply serve a notice of a month or two and leave no need to worry of bad neighbours, maintenance etc.

Hope this helps in your decision.