Unable to get a mortgage with (settled) defaults 16+months ago

gregwaz

Hi There,

Im hoping to find some urgent advice. My partner and I are looking to buy a new home. We are currently a family of 3 living in a small flat and were very quickly running out of space to grow. We have approached a broker who has informed us that unless we can find 25% deposit then its fairly unlikely that we will be able to get a mortgage. This is due to my bad credit history (about 16 months ago i had defaulted and had 5 missed payments on another mortgage, these were settled 16+ months ago) and there are several orange marks on my creditexpert file.

The house we were hoping to purchase is £179,000.

I earn £27k and my partner £22k.

We have 2 properties between us. 1 which is in negative equity but is currently tennanted and another that we want to sell. On the sale of this property we should be left with approx 40k equity after paying family 10k which they kindly loaned my partner 3 years ago.

We were going to use this for fees, pay off some CC's and hopefully leave around £30k for a deposit.

My Credit score with credit expert is 779 and my partners is 950+.

Can anyone advise what steps we could take to enable us to move forward or are we stuck?

Any help would be very gratefully appreciated.
A tired and worried.
Greg.

gregwaz

I forgot to add that my current unsecured debt with 2 CC's is approx 7k and my partners is around the same.

We both have never had a CCJ just incase that comes up.

Default started on Feb 2011 and on each month i have an orange default on each month up until July 2011 which is when the missed payment was corrected. It was 1 missed payment from January 2011 but was never back dated and therefore ran over month by month up until July 2011.

Thanks in advance.

DanDan123

Im not an expert, but i expect the first question will be asked, is what was the value of the defaults?

Dave_Ham

Really hard to say without seeing the detail of the credit file. Does it have a default date and if so what is this date?

Additionally, it will be essential to obtain your Equifax and Call Credit files also - just the £2 statutory reports to see what is listed on there.

Do not read too much into the credit "scores" as they are worthless, but the content is indeed valuable..

Stop the current broker searching anywhere else, if they are not experienced enough and cannot get a solution they could do more harm than good randomly applying...


Dave

gregwaz

Thanks Dan/Dave,

Value of the original Default was £293.00 and because it wasnt ammended (my idiotic stick your head in the sand approach) it carried on even though payments continued in feb, mar, apl, may, jun and july. It wasnt until July 2011 that i actually took my head out of you know where and sorted it.

I cant see an exact default date but know it was Jan/Feb 2011.

How do i get the £2 statutory reports? Ive got my Credit Expert one but equifax seems to want £14+. Sorry just it doesnt seem obvious. I signed up for Noddle and my score is lower on that for some reason.

Thanks Again its appreciated.

Greg

gregwaz

not to worry found it.

Thanks

Dave_Ham

Please forget the scores and ratings, but pleased you found the £2 report.

They will show as a default date on there and they should be quite apparent??

I would actually fancy this being achievable from what it looks like, interested what Equifax has reported?

gregwaz

Hi Dave,

Ok. Equifax has shown another default which i had no idea about from August 2009 for £44.00 for Virgin Media at an adress i was at after Uni. This is showing Red! Not sure what this is but maybe an old broadband account i had years ago which i was sure was payed upto date.

It also shows 2 late payments in summer 2009 for a barclaycard, and one payment late on a MBNA of the same year in Jan and April 2009.

It also shows my motgage defaults which you already know about from Feb 2011-July2011.

It also seems im not on the electoral roll acording to equifax.

Thanks again guys.

Dave_Ham

This is an example of why it is important to check the other agencies, as they are always pretty inconsistent..

Depending on the details, this may well be a Building Society application that is required.

You really need a specialist or experienced broker, your broker should have asked for the Experian and Equifax reports first.

Where have you currently been declined by, or did your broker just tell you 25% or bust?

Jessica09

I've got 2 defaults , one from 2009 and one from 2011. Both settled. We got declined for 90% mortgages then our advisor tried for 89%. Because it then takes it to below 90% the criteria changed and was less strict and we got accepted! Just a tip . Good luck

Dave_Ham

Jessica09 wrote: »

I've got 2 defaults , one from 2009 and one from 2011. Both settled. We got declined for 90% mortgages then our advisor tried for 89%. Because it then takes it to below 90% the criteria changed and was less strict and we got accepted! Just a tip . Good luck

Fair play sharing success, although this will not be the reason you got accepted. It does make a difference, but will not enough to mitigate 2 defaults.

I would imagine they are not listed on all credit files and you have benefitted from short comings in the lenders system..

Keep your head down though, as defaults would fall fail of all highstreet lenders credit scoring system.

Good luck though...