Mortgage After Default

Poddington

Hello

Just after some advice really; I bought my first house in November 2010. It was supposed to be a joint application between my husband and I, however on application he was declined as he had 2 defaults on his name.

I took the mortgage in my name only and we purchased.

One of the defaults came off in January 2012 and the the second one is due to come off in January 2013. After this he will have a clean record.

We want to buy a new house in the new year but I just want to know if after this default is removed whether he will still have any issues with lenders?

If both defaults are cleared and removed from his file will he have any issues applying to most high street lenders?

Really hope not! Thanks in advance.

harvey115

Once the defaults are dropped off the files, I do not see any issues.

Dave_Ham

Goes without saying, do not apply to a lender that has an association with any lender that placed the default.

The default shows on their internal system for longer...

Poddington

Thanks both!

Do you think its worth holding out until January/Feb before applying or are there lenders that will consider him now?

Dave_Ham

There are definitely lenders that would consider him now, although it would depend upon age, income, deposit (loan to value) and a few other variables.

It may be case that come January he would have more lenders to select from and therefore may receive better rates, subject to the above points...

Good luck

Poddington

That's comforting to hear!

Well in terms of % we probably have about £50k - he is early 30s and we have a combined monthly income of £4200 a month.

Ideally, we would like to put our current property on the market and start looking for a new place but have been deterred as we hadn't researched and realised fully that there are lenders that would consider him.

Apologies for so many questions but would we probably pay a higher rate because of the default or might there be high street lenders that would consider him?

Thanks again for your help!

Dave_Ham

No worries.

The devil is in the detail, there may be high street lenders that would consider but would depend upon many variables.

If not high street lenders, high street rates should be achievable given the age of the defaults.

It really would be worthwhile at least having a chat with a broker, what you require is an Agreement In Principle (AIP) so that you can market your property knowing that you are able to achieve a future mortgage on the new property.

Have a chat with a broker and they should quickly be able to give you some more clarity.

Good luck