85% ltv mortgage first time buyer with old satisfied default

Cppercy

Hi all, please any advise would be appreciated.

I'm applying for a mortgage Friday with Halifax, I have a 15% deposit and earn £50k per year. I am a first time buyer and the loan is for £134k.

Background history is around 8 years ago I broke my leg badly and was unable to work. I fell behind with many accounts and defaulted 4 times. All defaults were satisfied with exception of 1 I disputed the amount of, this default was not registered with credit reference agencies until oct 2008 when cabot took it over. I then took up the dispute with them as they could not produce any paper work and had upped the amount to £1242 from considerably lower amount. The other defaults fell off my credit file over last 2 years but this 1 remains, although I was able to finally reach an agreement and satisfy the amount earlier this year when cabot accepted an offer I'd made a year beforehand!!!

So my question is given that I have not missed any payments on any accounts for over 6 years and my credit file is perfect with the exception of this satisfied default which was registered over 4 years ago would I be likely to be declined for an 85% ltv mortgage with the Halifax. My credit scores are 911 with experian and with equifax its 464, I have a credit limit of £2400 with capital one credit card but a bałance of only £200. I have had 3 hire purchase cars in last 7 years, 2 settled and the current active. No missed payments on anything at all. I've rented for last 4 years and paid on time all the time.


Just stressing because I really want this home.

kingstreet

You'll only really get a final answer when you make a full application. The agreement in principle may not pick up the historic adverse, due to the Halifax "soft search" not finding everything at this stage.

I wouldn't like to set odds for you being successful, although the higher deposit does help.

Cppercy

Also I'm registered on electoral roll, have been employed in same company for 6 years in a secure job and have a great final salaried pension

Dave_Ham

It will all come down to the credit score, address history and risk.

Halifax are more flexible than most traditional mortgage lenders, although technically a default of this amount and timeframe should be declined.

Do not just accept the Agreement In Principle from Halifax, as this is often changed at full application once your offer has been accepted.

Given the history and details provided I would be inclined to have a Builing Soceity as backup just in case.

All the best

Cppercy

Thanks for replies. Just was wondering, if Halifax decline my application is there anywhere else who would be more likely to accept?

kingstreet

One of the smaller building societies which doesn't credit score and has a human being make its decisions. All of us have one fairly close by.

http://www.bsa.org.uk/aboutus/buildsocmember.htm

Ignore the bigger players - Nationwide, Yorkshire etc.