Looking to get a mortgage but I have an old default

Durr

I have an old default which is removed from my file in March 2014 so my original plan was to wait until then before getting a mortgage, however my tenancy is up in June and I will need to move out of here. So rather than rent somewhere else for a year, I figured I might as well try to get a mortgage.

My credit history is generally good I think, I've checked creditexpert.co.uk and it says I don't have any late payments in the last year. I have a small amount of savings put side for solicitor fees etc. and the in-laws will be helping us with the 10% deposit.

I went to Nationwide about a year ago to ask for a savings account because they had a deal which meant if you paid in a certain amount each month you would be eligible for a 95% mortgage, but the woman serving me seemed more interested in trying to get me to sign up for a current account. I agreed, but was declined. All this took so long that my lunch hour was up and I felt a bit disheartened so I decided to not bother with the savings account and went back to work.

I've not applied for any credit since then but I do have two searches on my file from December which appears to be when I used a compare site for car insurance.

Will I be able to get a 90% mortgage with this mark on my credit? It will be a joint application with my fianc!e and our joint income is about £70k. We would be looking to borrow about £300,000.

GMS

How much was the default for? Has it been repaid?

The Save to Buy means you are eligible to apply, not eligible to get.

Durr

Oh yes, that's what I meant. I didn't mean they would have to give me a mortgage

The default was for a loan of £5,000 and the amount was about £5,900 with interest. Annoyingly I paid it off quicker to Blair Oliver Scott than I would done by just paying it off normally! I wish I could go back in time and tell my younger self off...

Thrugelmir

I would recommend that you get saving. On your joint incomes should be possible to save considerable amount in 12 months. A lower LTV would improve your chances.

Over 4 times income at 90% LTV is pushing the boundaries.

Alternatively buy a cheaper property just to get on the ladder.

Durr

Just a quick update for anyone in the same situation - we got offered 5x our joint salaries at 90% LTV even with the default. But we did not need that much.

ACG

Who with?
Have you been offered the mortgage or just passed a credit search?

Im guessing halifax? They only do a soft footprint search which does mean it isnt 100% accurante.

kingstreet

If the debt was BOS-handled it's a HBoS group debt.

That should make the Mortgage Promise with Halifax more reliable, if Halifax it is...?

If it was a non-HBoS debt at a previous address, I'd be concerned until a pass on a full application.

Durr

The debt was with HBOS and the mortgage was Nationwide - they had the best deal at the time. It all went through with no problems and I have been living in my house since July.