Is there any chance!

Paulinesun

Hi just need some advice. Is there any chance of getting a mortgage with a default less than a year old or not, even though I have a good deposit of £40,000 and no other debt. I have worked hard to pay off all my debts and dont even have a credit card etc. I was told by one broker he could definately get me a mortgage then months down the line he said he couldn't. Any advice would be appreciated thanks.

GMS

How much was the default and when? Have you satisfied it? How much do you want to borrow?

Paulinesun

Hi yes it was for a few hundred pounds and I have satisfied it. I want to borrow about £50 or £60,000.

GMS

Have a chat with a broker to see if there are options. Dont go applying at random to banks.

Paulinesun

I did see one broker already but after months of waiting he said there is no chance with a default less than a year old on my file and said no one would be willing to lend. I thought with a good deposit and settling everything there would be a chance.

GMS

There may be reasons for the broker telling you that. Without knowing your full circumstances it is impossible to say.

Possibility of lenders accepting the default but all other criteria would need to be met.

Try a second opinion.

Paulinesun

Ok thanks. What other criteria do you mean .

Thrugelmir

Paulinesun wrote: »

I thought with a good deposit and settling everything there would be a chance.

Lenders have tightened criteria considerably in the past 12 months. Given that demand for many mortgage products exceeds available funding. It's a way of thinning out applications.

Defaults demonstrate either a potential borrowers financial weakness or attitude to monetary affairs.

Paulinesun

Yes Thrugelmir I do realise this that's why I am trying to get some advice. As I said since I lost my husband I have brought everything up to date and don't have any outstanding debt and was wondering if this one default earlier this year would affect me getting a mortgage and if so how long would I have to wait before I can be considered for a mortgage. I am new to all of this so am picking everyones brains at the moment.

holly_hobby

A default within 12 mths is considered recent and therefore indicative of current/on going financial issues.

However, IF you have a ltv under 75%, and a satisfied DN less than £500 max, with a v good reason for the default (ie - we're looking for evidence that it wasn't reflective of an inability or refusal to pay, but other constraints ), there may be a home for you under an individual UW mandate decision.

As suggested do seek a 2nd opinion from a decent whole of market broker, and/or wait until there is some water under the bridge between you and the default.

Hope this helps a little

Holly

Paulinesun

Thanks Holly. Can you tell me what ltv is please sorry I am still new to all this.