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Want mortgage but have a default. Eek!

friendllybeard
friendllybeard Posts: 2 Newbie
in Mortgages & endowments
Hello all,

My wife and I are first time buyers and need a mortgage.

I have a fair credit rating with a default on my file from nearly 6 years ago. My wife has an excellent credit rating.

1. Will my wife's credit rating balance out my fair+default?

2. What are the chances of being approved for a mortgage with my default?

Answers to the above or any advice would be much appreciated!

Thank you,

Rob :)

Comments

  • ACG
    ACG Posts: 24,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    1) unlikely, unless your income isnt really required.
    2)its quite old, so depending on the amount of the default whether and when it was paid off and the size of your deposit it should be possible.
    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.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How much do you want to borrow?
    How much deposit do you have?
    What incomes?
    When was the default and for how much? Is it satisfied?
    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.
  • friendllybeard
    friendllybeard Posts: 2 Newbie
    Hi,

    Thanks very much for your replies!

    How much do you want to borrow?
    £135,000

    How much deposit do you have?
    £15,000

    What incomes?
    Mine is currently £21,700, although I've just got a new job at £27,000. Wife's is 22,500.

    When was the default and for how much?
    £1,679. Default registered in Dec 2006.

    Is it satisfied?
    No, settled in Jan 2007.

    Thanks for your help!
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    Default drops off in 1 month, so may as well hold on.

    If you were hell bent on buying tomorrow there will be solutions, although surely best to wait....

    Good luck
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • kingstreet
    kingstreet Posts: 39,353 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I agree with Dave.

    At 90% it's an uphill battle.

    Wait until the default drops off next month.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • friendlybeard
    friendlybeard Posts: 4 Newbie
    Thanks all for your replies, all very helpful, we're really grateful! :)
    We're now thinking of waiting but would like to know exactly when we could apply for a mortgage.

    I'm slightly confused about the default:

    Experian say that the default was from 14/12/2006 and that it was 'Satisfied'.

    Equifax say that the default was registered in Dec 2006 and 'Settled' in Jan 2007.

    So, which should I believe and when exactly will it disappear off my record?

    Many thanks,

    Rob
  • DanDan123
    DanDan123 Posts: 378 Forumite
    From the date it was entered. Will drop off in December.
  • friendlybeard
    friendlybeard Posts: 4 Newbie
    Great, so when I check my record on the 1st of December the default would have disappeared? :j

    Thanks for your help!

    Rob
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