Mortgage with a default on credit file

Roos-V

Posted this yesterday in the debt free page, realised it would be much better in here.

Currently in the process of getting a mortgage through Halifax. AIP agreed for 90% LTV, upon full application it has been referred to underwriters due to a default on my credit record dated 06/06/2010. I had no idea this existed, and called to pay it right away. Trying to get Santander to remove this from my credit file (they have this registered at my previous address) and getting nowhere with them so far.

Would anyone know my chances of the application being approved? My current credit score on Experian is 761, which classes me as fair. I assume that without this default against my record it'd be a good bit higher.

Thanks

Dave_Ham

Forget the scores, a default in 2010 is a huge issue.

I think it is unlikely Halifax will accept, but fingers crossed for you.

Roos-V

Thanks. It's a small amount of £155 which I paid as soon as I found out about it on Friday. I realise the amount of it may well be irrelevant.

I am disputing the default, but the time that will take to resolve or not won't help me in the slightest.

Conrad

I agree, can't see any lender accepting this until some time has elapsed.

Just for your info', one can never use ignorance of a debt / default in thier defence. It's a basic principle of English law, otherwise speeders would claim the defence they didn't realise the limit on a stretch of road was 50 for example.

Roos-V

How much time would you say is a fair time to elapse? It's two and a half years since default was recorded. Will I need to wait the full six years before I'll have a chance?

I agree regarding ignorance - this has been an error and misunderstanding on my part. I know I'm not blameless but I honestly thought that the account was repaid and having not received any correspondance to the contrary thought it was all ok. I would never have dreamed of going for a mortgage with a default had I known it existed, I only found out about it when applying for the mortgage.

Dave_Ham

Its not necessarily just the default, it is the default combined with a 90% loan to value mortgage requirement.

Whilst this is a showstopper for the traditional banks, you may find a suitable Building Society will look at your case still. They will manually underwrite every part of your financial life though, so only if everything is straightforward would this be recommended as a solution.

You may find a broker useful at this point, should Halifax confirm the worst.

Good luck

Roos-V

Just a little update.

Santander have confirmed to me that they are going to remove the default from my credit file, but that it will take up to 7 days to show. Explained this to the mortgage adviser at Halifax as well although he is on a day off so won't hear anything back from him today.

Hopefully the end of a stressful fiasco (well, fingers crossed). Thanks for the responses yesterday.

Dave_Ham

Good effort getting the default removed...

All the best with Halifax, which should now be ok..

Good luck

Roos-V

They took their time...but Halifax finally came back today with approval, subject to survey. Fingers crossed that it all goes smoothly from here.

Thanks for the responses folks

Sparx

Roos-V wrote: »

They took their time...but Halifax finally came back today with approval, subject to survey. Fingers crossed that it all goes smoothly from here.

Thanks for the responses folks

Fantastic! Well done.

Great work getting the default removed so promptly as well. You deserve a pat on the back for that, especially as it was Santander!