another Bad credit morgage question sorry

stevewhite

Hi there everybody

just like to introduce myself and say hi as its my first post on here but looking at the vast forum topics certainly wont be the last, has to be one of the most helpful and interesting sites around.

Anyway thanks in advance for any help.

My problem.

Applied last year for a mortgage and it was excepted no worries but unfortunately the house fell thru. We then earlier this year found another house for sale and put an offer in, which was excepted but all our mortgage applied for were declined. I have since found out that in December a default was put on my credit report, it was for a Lloyds current account which had a 600 overdraught but was 500 overdrawn. Its a long story but Lloyds called in the debt because no money was going in, but due to a house move and not receiving mail I never knew about it until the debt collection letter arrived , I payed the bill instantly thinking that was it ( how naïve) but obviously its now come to haunt us.
My credit score is 824 fair and is pretty good apart from the Lloyds default which is settled
my partners score is 999 and perfect

we are looking to buy a house for 170000 and we have a 25% deposit plus all monies for solicitors and fee's etc in cash.

Does anyone know a mainstream lender that might offer us a decent rate as the only one according to our broker (who I have gone off abit lol) is G.E. money and their rates are stupid and their fee's are stupid too.

Cant believe that such a small debt which was settled should make such a massive difference to me and my families future

Many thanks

steve

ACG

Have you got all 3 credit reports?
Is the adverse showing on all 3?

You might not be happy paying GE's rates but you might not have many options, it could be a means to an end.

stevewhite

HI there

thanks for the reply

I have only looked at my Experian credit report, shall I look at the rest and if so will this make any difference or help me in any way

thanks again

steve

monty-doggy

I have one default on my file and one query, my rating was less than that 700 and something and I got accepted 70% LTV with the Woolwich from Barclays.

Obviously depends on your income but I borrowed 115k 50k deposit and I earn 30k.

Hope that helps.

kingstreet

I have only looked at my Experian credit report, shall I look at the rest and if so will this make any difference or help me in any way

It will if it doesn't show on one of them and you can identify a lender or two which uses only that one.

monty-doggy

That's what I did. Through a broker, mine showed on equifax not on experin I think. Them my broker checked who uses what and applied.

stevewhite

Thanks for the replies guys, just looked at all my credit files (Experian, call credit and Equifax) and unfortunately they all show a default in November but it settled on all credit files. When I printed the info off apart from the Lloyds default all reports were a see of green, ive put a notice of correction on my Experian account just out of desperation explaining whats happens. still cant believe for such a small amount of money and your only problem, your put on the same level as a bankrupt or someone with a CCJ.

Many Thanks

steve

stevewhite

monty-doggy wrote: »

I have one default on my file
and one query, my rating was less than that 700 and something and I got accepted 70% LTV with the Woolwich from Barclays.

Obviously depends on your income but I borrowed 115k 50k deposit and I earn 30k.

Hope that helps.

Monty-doggy

you sound like a similar situation to me and my partner but are you saying Woolwich gave you a mortgage with a default? because my partner had a mortgage with Woolwich in a previous marriage for over ten years but the turned us down and that's with a 42500 (25% depo). My partner earns £10,000 a year and I earn £33,000 a year with O/T. Perhaps its because you have put that little bit extra down giving the lender more confidence, who knows

many thanks

steve

ACG

Dont apply to Woolwich!
There is nothing wrong with woolwich but you do not meet their criteria.
Applying just because someone else was accepted is not a good way forward and will make your situation even worse if they do not accept you (which is very likely).

You need to sit down with a broker, if you do not like what your broker has come back with try another. Personally i cant stand GE, their rates and fees are very high and their process is enough to give anyone a heart attack, but they do have more lenient underwriting.

There may be 1 or 2 other lenders but with that default showing you wont be getting many (if any) high street lenders offering you a mortgage.

monty-doggy

I went through a broker who made sure the lender used the credit reference agency that didn't show the default.

It appeared on one, not on the other. I agree with the above, don't just apply you need to get a broker to doit otherwise you will damage your file!

gazter

stevewhite wrote: »

Thanks for the replies guys, just looked at all my credit files (Experian, call credit and Equifax) and unfortunately they all show a default in November but it settled on all credit files. When I printed the info off apart from the Lloyds default all reports were a see of green, ive put a notice of correction on my Experian account just out of desperation explaining whats happens. still cant believe for such a small amount of money and your only problem, your put on the same level as a bankrupt or someone with a CCJ.

Many Thanks

steve

if it was a mistake and you have a good history with lloyds, you might find that they are amenable to rectifying the matter on your credit file.

I had a credit card go unpaid because a recurring payment that comes out once a year came out, but the DD had lapsed causing me to miss a payment.

Phoned them, and they were quite pleasant and changed it no problem (it took a few weeks for the correction to go through to experian, though). The customer service for experian for subscribers is pretty good also.

Anyway, a few weeks later, i have a nice mortgage at 2.89% fixed for 4 1/2 years.

PS many on here will tell you to take no notice of the 'credit scores' as they arent what the lenders use.