Turned down by Barclays for Mortgage Default.

MysteriousMoon

I am feeling very very low. I was looking to get either a 2 bedroom house or 3 bedroom house shared ownership Mortgage and get the £95K mortgage with Barclays but I have just been declined because of a silly default I made when I lost my job back in 2010 (November) with Orange Mobile. The Gentleman at Barclays said that my credit history with them was brilliant but its just the default that is the issue. He told me to I should be able to get the mortgage next year because then the deafult will be over 3 years old but I am very confused! I am reading everywhere that it is 6 years not 3? Is it possible that I might be accepted next year?

antrobus

MysteriousMoon wrote: »

I am feeling very very low. I was looking to get either a 2 bedroom house or 3 bedroom house shared ownership Mortgage and get the £95K mortgage with Barclays but I have just been declined because of a silly default I made when I lost my job back in 2010 (November) with Orange Mobile. The Gentleman at Barclays said that my credit history with them was brilliant but its just the default that is the issue. He told me to I should be able to get the mortgage next year because then the deafult will be over 3 years old but I am very confused! I am reading everywhere that it is 6 years not 3? Is it possible that I might be accepted next year?

It will be 6 years before the default drops off your credit file altogether. But that helpful chap from Barclays is telling you how his bank's credit scoring is currently working i.e. it's a no for a default in the past three years, a maybe if it's over three years.

ACG

Yes, Woolwich' criteria is defaults over 3 years are ignored.

MysteriousMoon

Thank you guys this has given me some hope that maybe next year I will buy a house. This time I will save up and actually try and buy the house instead of shared ownership xx

mkmini81

Going through WoolWich now with defaults. Mine are 5.5 years old but they have to be settled for more then 3 years to meet the criteria..

MysteriousMoon

MKMini.. did you actually manage to get the mortgage?

ACG

Adverse credit as detailed below must be declined:

• Any unsatisfied CCJ
  and/or
• More than 1 satisfied CCJ and the latest is within the past 3 years
  and/or
• Satisfied CCJs totalling more than £200 and the latest is within the past 3 years
  and/or
• More than 3 outstanding and/or satisfied defaults and the latest is within the past 3 years
  and/or
• Outstanding and/or satisfied defaults totalling more than £200 and the latest is within the past 3 years

http://www.woolwichintermediaries.co.uk/Residential/Residentiallendingcriteria/IP1242620533007

kingstreet

How much was the default?

Date of registration?

Date of satisfaction?

Which version(s) of your credit file(s) is it visible on?

What's the loan to value? (mortgage amount divided by purchase price)

mkmini81

MysteriousMoon wrote: »

MKMini.. did you actually manage to get the mortgage?

Had the valuation yesterday so waiting to hear back from the underwriters. I think the credit part of the application was done prior to the valuation being instructed as i was asked to supply a document confirming one of the defaults was settled.

MoneySaverLog

Different banks and BUILDING SOCIETIES will have different lending criteria. Just because one decides to not look at you, does not mean down the road they wont.

MysteriousMoon

How much was the default? £449

Date of registration? 19/11/2010

Date of satisfaction? 03/10/2011

Which version(s) of your credit file(s) is it visible on? Noodle.co.uk as of yesterday.

What's the loan to value? (mortgage amount divided by purchase price) I need a mortgage of £63,000.00 as I will only be buying 20% of the property. Property amount is £280K and I have a £7K Deposit but my in laws will add to this if needed