Urgent - First mortgage, rejection because of default fears!

tates1979

Hi all, I'll try and be brief as possible.

Got married recently, been living eith my wife for past two years in her house (she owns it). She has an exemplary credit history - hasn't been turned down for anything!!

We decided that we wanted to upgrade the house, went to see financial advisor and she totted up facts and figures - (me - 25.5k/year, wife - package of 40k/year) and basically she said we could get joint mortgage of 350k if we were to sell the existing house.

Here's where the fun starts - i have an outstanding default from a mob phone company (orange) of £170. This will have been issued 6 years exactly on 21 July 2007. I expected that i could just wait and the default would drop off then - however, we have seen the house of our dreams and want to make an offer on it now.

The question i want to know now is: will we be turned down for the joint mortgage because of that default that i have between us? I have two credit cards and a loan approved by my bank (outstanding debts about £1500) - and i think i have had one late payment over the past two years - down to being on my honeymoon and forgetting! all other payments made on time.

If we are likely to be turned down - should i attempt to get the default removed? If i make an offer to orange of a settlement would they remove the default (knowing that it will drop off my account in 7 weeks time - this is my bargaining position)?

I'm really worrying here so would appreciate your help/advice.

Thanks all.

:A

Mr_helpful

it should be easy as long as you tell the adviser

tates1979

So your advice would be - leave the default as is and let it drop off on 6 weeks time? I'm not going to be left red-faced?

Just let the financial advisor know when she is setting up the mortgage?

If this is true i'm a happy man - hopefully everything goes ok! Thanks a lot Mr Helpful!!!

tates1979

Bump for any further thoughts / advice? What should i say to our financial advisor when i see her next? With a 30% deposit for the next house, is my default going to prevent us from getting a decent rate?

Thanks again!

herbiesjp

You should be fine with a default that is close to 6 years old.
You should be able to get standard rates as well

Can't comment on the figures you are looking at, as not enough information, but you should be able to get a mortgage

HTH

golfnutt

You will have no trouble at all getting prime mortgage, Rate wise will be down to finding the best deal for your borrowing criteria. Get a good fee free whole of market broker. I did....:j

MortgageMamma

Absolutely loads of lenders will do that on a prime rate default or no default. Don't let your Adviser palm you off with an adverse product, good luck

jswaminathanuk

I know nothing but I am also in similar case and many people out there are.

it is easy for mobile company or any other company to put a defaut in your credit history. MAny times you won't even know if there is a default in your history.
one of my friend's credit history is fine with Equifax but in experian there are 2 defaults.
my friend got couple of reminders from debt collection agency but when he asked them to provide details of debt they couldnt provide any and stop chasing him but the default mark is still there.
I read in some other thread that MSe was managed to took off the default in credit history but every month it came back again (when the banks update their private file it reset back)
I don't think one or 2 occassion will affect mortgage much. However if it does then please let me know.
I think when 60% of people have some default (mostly by mistake) in their records and banks stop giving them mortgae then what will bank do or where will these people go.