What mortgage company will accept me with a default?

Wright10

Hi,

4 years ago I ended up with a default on my O2 account for £650. This was paid in full and satisfied in Oct 09.

I have a secure job (local authority 10 years) earn £30k and have lived at the same address for 10 years.

Never missed a mortgage payment and everything has been paid on time and up to date in the last year.

My house is worth £150k and I am looking to borrow £115k (76.6% LTV)

I cannot find anyone who will give me a mortgage and I have tried two different brokers.

Please help


Thanks

Dave_Ham

Ok, there will be a solution here and my specialist subject so do not worry.

Importantly, some answers to the following questions will help confirm this a bit more

How did you achieve the deposit or is this is a remortgage?
You said lived in same place for 10 years, is this a right to buy/acquire mortgage?
Have you already got you Experian, Equifax and Call Credit reports?
Where have your brokers tried and failed?

It is important you tell them to stop putting in any speculative applications and this will not help you.

Typically, a decent broker would get your credit files and then place appropriately.

Wright10

Hi

Thank you for your reply.

Right to answer your questions.....

This is a remortgage, my current one is for £85k and interest only with Santander.

I have my equifax file, score of 394. Both brokers had my log in details and all the info, they tried various places including Halifax, and failed.

I don't have any searches on my last 6 months according to equifax.

Thanks

Dave_Ham

Is the additional funds required for debt consolidation of credit cards/loans?

Sure it was explained that highly unlikely you would get interest only again..?

Does just the one default show on the credit files, or any significant late payments etc?

Wright10

Extra is for a new bathroom and to clear a loan.

I don't want interest only again, that was just to get the right house in the right area when I couldn't afford repayments, I know can and want to start paying it off.

One lot of late payments by 3 months, but that was 5 and a half years ago.

And a couple of queries on a shop direct account at the end of 2011.

Thank u again for this help

Dave_Ham

Were the 3 payments consecutively?
What were the queries late in 2011 and how do they manifest on credit files?
Does the default show on all 3 credit reports?

Still fancy there should be a solution here, other things being equal.

Dave_Ham

Quick thought, I am assuming this is a sole mortgage and not joint?

Wright10

Yes it's just me, and 35 so age shouldn't be an issue.

The 3 late payments were consecutive in July aug and sept 07 and were cleared and account closed in oct 07.

Shop direct was 2 late in aug 11 and 1 in march 12. All up to date in April 12 and next week balance will be cleared and account closed.

Cheers

Dave_Ham

I would suggest a better broker and you will have a solution, with a rate better than the assumed 4.74% variable you are on?

Many of the solutions are likely to be manually underwritten, so hopeful that everything will look acceptable when examined by an underwriter....

Wright10

Thank you so much, I felt I was a hopeless case for another two years or so til the default was removed from my file. I have tried the two best brokers in the area I live in. Is there a company you could recommend.

Again thank you for your advice.

Dave_Ham

Sometimes good brokers do not necessarily have as much experience in the adverse credit arena.

Cannot recommend as such, but suggest some time on google and would suggest you search out a specialist.

Ensure you get all the reports, including Call Credit as this may well prove important.

Best of luck