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Advice Needed

Looking for a mortgage of around £275000 with a deposit of £75000 for a house costing £350000. Easy so far, now the problem bits. I have just finished my first year in business (Ltd co) with a profit of £100000 (£80000 after tax). I also have a default against me for £19000, it has been on my file for 5 years and goes back to a fight I had with a bank in 1993, but thats another story. I recently contacted them about a full and final settlement only to be told that they would also want interest making the total £34000.
Do I stand any chance of getting a mortgage?

Comments

  • Mr_helpful
    Mr_helpful Posts: 3,233 Forumite
    yes you could probably get a mortgage. Some lenders ignore old defaults
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Indeed you should be ok based on the figures posted

    The default could cause a problem due to the maount, but as it is quite old now, you may well be able to get standard rates with some lenders.

    Otherwise you will be able to get a mortgage but with slightly higher rates to compensate for the default
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • cee2
    cee2 Posts: 15 Forumite
    Thanks for the replies
    Just tried with existing lender - straight no
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Was that because you have not been trading long enough?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • cee2
    cee2 Posts: 15 Forumite
    They were happy with my income etc, it was the default on my credit file they objected to
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Who is your lender? Did they run a credit check, or was it just based on the verbal information you gave them?

    If you are set on buying the property it looks like you will have to find a different lender - you should be able to find plenty that are willing to help
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • cee2
    cee2 Posts: 15 Forumite
    I am currently with C & G. They ran a credit check and it came back declined.
  • cee2 wrote: »
    Looking for a mortgage of around £275000 with a deposit of £75000 for a house costing £350000. Easy so far, now the problem bits. I have just finished my first year in business (Ltd co) with a profit of £100000 (£80000 after tax). I also have a default against me for £19000, it has been on my file for 5 years and goes back to a fight I had with a bank in 1993, but thats another story. I recently contacted them about a full and final settlement only to be told that they would also want interest making the total £34000.
    Do I stand any chance of getting a mortgage?
    I would suggest you get a copy of your credit file, for this you could use experian, I would also ask the bank for a breakdown of the figures so that you can check them, it seems to have risen an awful lot in 5 years
    I am an Independent Financial Adviser and as such any discussion / conversation held within this forum does not construe advice in any way. Discussions should be used for guidance purposes only, you should always seek the services of an Independent Financial Adviser before making any financial decisions.
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