Defaults gone - will Santander still refuse?

Poddington

Hi there

My husband and I are about to apply for a joint mortgage together, he had two defaults (one from 06 and one from 07) which have now fallen off his files.

As my current mortgage is with Santander I want to avoid the exit fee and apply for a joint mortgage on a new property with him; i have an appointment booked with them but worried that even though the defaults are no longer on his file they might still refuse him as one of them was with Santander.

Both were cleared and settled and seem to have come off his Experian/Equifax/CallCredit files and his score appears to be in the excellent bracket.

Im concerned that they hold records longer and will still penalise him...please advise?

Thanks

kingstreet

If you are selling, the mortgage is paid off and the exit fee payable. Did you mean exit fee, or is there an early repayment penalty attached to a fix or tracker you've taken recently?

In that case, you'd apply for a joint mortgage and ask to port the rate from the old mortgage over to the new one, taking any increased borrowing on one of the lender's current products.

If the adverse has dropped off his credit files only the lender's internal systems might pick up his debt to them. There's no way of knowing how this might be dealt with. What about an agreement in principle, to see if they do accept you, before you do anything else?

Poddington

Hi

Im hoping to port the mortgage across as I think there is an ERC of £3k + if I switched lenders - to avoid that I will ask to port it but get him added if thats possible?

Ok thats what I figured; it has come off all his other credit files but they may hold it longer and refuse on that basis which will affect his file again.

I guess getting an AIP would be the best bet? To check they will accept him before doing a full on app that could get refused?

Wh05apk

Abbey currently have a "no-adverse" policy, so if it is picked up it will decline, if over 6 years though you should be safe, although I can' remember if Abbey ask "have you ever?" or "in the last 6 years" if the first you "should" declare the defaults which will then likely cause it to decline.

Poddington

sorry i meant early repayment charge as im selling my property

kingstreet

The only record of an AIP is the search. There is no "decline" entered on file.

You have to decide if that search is worth trying to save £3,000.

Conrad

Suck it and see is the only answer. Well worth a go in my view.

Poddington

Thanks for the advice

On another note if they decline it I would still be able to get a joint mortgage with him from another lender? As the defaults wont be on his file anymore?

Means I will have to bite the bullet and pay the fee but so be it I guess

kingstreet

Spot on.

Poddington

Thanks all I'll let you know the outcome fingers crossed

Thrugelmir

Poddington wrote: »

Hi

Im hoping to port the mortgage across as I think there is an ERC of £3k + if I switched lenders - to avoid that I will ask to port it but get him added if thats possible?

Adding you will require a new mortgage application that will result in a new product. Thereby invoking the ERC. .

Depending on the interest rate. Santander may decline the port application in any event.