95% mortgage with default

Jemelia

Hi Guys,

Quick questions, is it possible to get a 95% mortgage with a default that is 5years old?

Is it possible to do a joint mortgage with my mother who currently has a mortgage with about 5 years left?

Thanks in advanced

kingstreet

I would say a 95% mortgage without a sparkling credit record is highly unlikely. A visible default is a deal-breaker, IMHO.

A joint mortgage with your mother? What, on the 95% you mentioned, or on some other basis? Her existing mortgage term isn't relevant. Her age and time to retirement may be...

Please clarify.

Jemelia

To clarify I would do a joint mortgage with my mum who is 52 preferably on a 95% mortgage, if that's not possible then a 90%.

kingstreet

The term of a joint mortgage could be limited to 12 or 13 years, when your Mum is due to retire.

With a visible default, you may need 15% deposit or more. TBH this depends on the size of the default and the reason.

Jemelia

When you say "The term of a joint mortgage could be limited to 12 or 13 years", I'm not sure what you mean sorry.

The default I have is for a mobile phone bill an ex ran up and left me to pay £350. I was considering adding a notice of default (I think that is the correct name:o) would that make any difference?

akamustang

Jemelia wrote: »

When you say "The term of a joint mortgage could be limited to 12 or 13 years", I'm not sure what you mean sorry.

It means your repayments would be twice as much monthly, which would (probably) mean failing on the lenders affordability criteria.

officepunk87

with a 5 year old default but only 5% its unlikely. Wait a year, save another 5% if you can and you'll be fine. Alternatively you could be eligible for the new government scheme that kicks in in 2014 to help people buy houses.

Jemelia

officepunk87 wrote: »

with a 5 year old default but only 5% its unlikely. Wait a year, save another 5% if you can and you'll be fine. Alternatively you could be eligible for the new government scheme that kicks in in 2014 to help people buy houses.

Do you not have to wait for 7years for defaults to not affect you?

kingstreet

Defaults fall off your credit file 6 years from the date of registration.

As mentioned, lenders dislike lending part someone's retirement age. If your Mum plans to retire at 65, the term of any joint mortgage will be limited to the time she has until then, unless she can provide evidence of income in retirement.

Jemelia

I have just checked my default was dated 2009:(

Would a notice of correction on my default make any difference to getting accepted on a 10% mortgage? Other wise my credit is "good" according to experian.

Thanks for all the info regarding a joint mortgage with my mum....that is gonna be out of the question for me.

kingstreet

Chances are, it will make no difference. If a lender will accept it, it will accept it, if it won't, it won't.

The decision will not be affected by the appearance of a notice of correction.