Possible Mortgage application

Frogmorton_2

I am new to this forum so forgive me if this kind of question has been asked before

I am 43 years old and hope to try for a joint mortgage before the end of the year - living in rentals at my age is a bit tiring and my parents have assured me of a deposit of around £20,000 to £30,000 which in my part of the world is not bad for a small starter home for hopefully a mortgage of about £100,000 £120,000

The thing is my (our) credit files. I have been cleaning my credit files this year and a number of defaults have been removed form my experian file (although not the Equifax file) and my score has gone up from 212 to just under 800 in 9 months. I have just paid a loan off so that should go up a bit further think. I now have no debt. yay. I have not checked my equifax file recently nor my call credit file at all.

However my partner who's score has also gone up (again just under 800 on Experian) has an unsettled default (bank of ireland old credit card long since forgotten and not pursued by them for it) for £2,000. He / we are not in position to pay this off at once. There seems to be a difference of advice about whether an unsettled or settled defautl makes a difference when applying for a mortgage. What do people think? Is this going to maeke getting a mortgage impossible? Should we go through a financial consultant?

GMS

Do not apply at random. You need to speak to a broker for this case due to the defaults.

When were the defaults put in place?

Frogmorton_2

Not sure right now but I think more than 3 years ago

Frogmorton_2

Any default I have still on equifax is roughly 4 years old or more. All settled.

Thrugelmir

Frogmorton wrote: »

However my partner who's score has also gone up (again just under 800 on Experian) has an unsettled default (bank of ireland old credit card long since forgotten and not pursued by them for it) for £2,000. He / we are not in position to pay this off at once.

Not pursued or lost contact?

Unsettled defaults do not inspire confidence in lenders. As it shows an attitude towards repayment of debt.

Dave_Ham

As GMS said, you need a broker.

The fact they are 4 years + will allow some lenders, but typically an unsatisfied default is a dealbreaker.

Print your reports and see a reputable broker and they will be better placed to tell you your options..

Experian_company_representative

Good advice on using a broker. Most lenders will baulk at the idea of taking on a new customer with undischarged bad debt elsewhere, but there may be some who'll be less concerned given the age of the debt.

James Jones