Mortgage Application with Defaults

Evans1882

Hi

My self and my partner are looking to buy a home together this year, my partner has a mortgage on the house we currently live in.

We want to move and buy a house together but i have a poor credit history. I have three defaults on my credit score two are due to drop of in October this year and the other January 2014 all of the accounts were satisfied in June 2010.

My partner has a great gredit history and has never missed a payment I currently hold no credit accounts only a basic bank account with the Halifax I belive my credit score is 890 fair on Experian, we both have good stable jobs I work for the John Lewis Partnership and our joint income is £56000 our deposit should be around £35000 when we sell the current house.

My qestion is does my credit history scupper our plans to obtain a mortgage together, the current Mortgage my partner has is with the Halifax and we have a good history with them we would like to stay with the halifax to save cost.

Any advice would be gratfully recived

AliceBanned

The defaults drop off six years after the date they were settled.

You may still get a mortgage, it will just affect the interest rate. Other people can advise better on this than me but regarding the default I have the same problem, just found out that mine won't drop off until June 2016 because it was settled in June 2010, despite the original default being in 2008. But I'm applying for mortgages anyway. There are many factors affecting your application and it doesn't look like you have many negatives.

kingstreet

If you are moving house, you won't save cost by staying with the same lender. Shop around and find the lender which will lend to you at the lowest overall cost. Halifax rates aren't great.

Avoid a Halifax mortgage promise. This is presented as a guarantee of a mortgage waiting for you, but the search is not comprehensive and you may find you are declined when you make a full application.

You need to get hold of all three of your statutory credit files;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

Which you should take along to a meeting with a good independent or whole market mortgage broker. Ask friends and relatives for a recommendation. Failing that, use https://www.unbiased.co.uk remembering to switch off "sponsored ads only" option so you get a full list, not just the paid-for adverts.

The £2 statutory paper files will be fine. Avoid online schemes you have to pay for which give you your inside-leg measurement and call it a "credit score" as this is different to the lender's, the one which actually matters to you...

A broker needs to know the registration date of the defaults, the amounts involved and the reasons.

You don't give a target purchase price range, but if that deposit means you are looking for 80% or less, you should have a fighting chance. That means not exceeding £175k and having other funds to pay EA, solicitor and mortgage fees and stamp duty.

Think carefully about (not) applying for a joint mortgage agreement in principle. You will link your credit file to your partners by creating such an association. This may affect his ability to get a sole mortgage, if that is the broker's advice to you.

lindsloo

AliceBanned wrote: »

The defaults drop off six years after the date they were settled.
QUOTE]

Incorrect, defaults drop off 6 years after they are applied to your credit file, regardless of whether they have been settled or not.

Thrugelmir

lindsloo wrote: »

AliceBanned wrote: »

The defaults drop off six years after the date they were settled.
QUOTE]

Incorrect, defaults drop off 6 years after they are applied to your credit file, regardless of whether they have been settled or not.

If settlement is being paid in installments. Then the account remains in default and will be scored as such by lenders.

AliceBanned

lindsloo wrote: »

AliceBanned wrote: »

The defaults drop off six years after the date they were settled.
QUOTE]

Incorrect, defaults drop off 6 years after they are applied to your credit file, regardless of whether they have been settled or not.

In that case one of mine has been on for way too long.

I was told by checkmyfile.com that mine would drop off six years after settlement. Which means it has been on for about ten years - can't be right..

AliceBanned

Thrugelmir wrote: »

lindsloo wrote: »

If settlement is being paid in installments. Then the account remains in default and will be scored as such by lenders.

OK. Now makes more sense.

Evans1882

Hi

Just came home from a Mortgage meeting with the Halifax we were turned down flat:mad: as my thread said i do have three defaults on my credit file two with HSBC that drop off in October this year & one with Nat West that drops off January next year, next step will be a appointment with a broker what do you all think my chances are of getting a joint mortgage with my partner from a broker with my current credit, her credit rating is top notch with no poor history.

p.s I surpose i new deep down we would get a knock back from the Halifax but it still hacks me off a little :mad:

droiderm

How much are the defaults for ?

Thrugelmir

Evans1882 wrote: »

as my thread said i do have three defaults on my credit file two with HSBC that drop off in October this year & one with Nat West that drops off January next year,

Lenders compile your score on your last 6 years (72 months activity).
So will detect the defaulted accounts. From each months activity.

Evans1882

droiderm wrote: »

How much are the defaults for ?

Three in total add up to £14000, we have just had a meeting with a broker and that didnt seem to go to well either, as i said thay do fall off in October this year & ine in January next year. Any one had a simular experiance and what was the outcome for you?