Mortgage Applications

shaun12uk

Can anyone confirm if you are likely to get a mortgage if you have no outstanding loans or cards but you do have a history of defaults. My financial situation will be clear in terms of debt from October however my credit file if interrogated will show defaults on settled loans which now show as satisfied. Will mortgage providers decline if the defaults are only 12 months old?

Wh05apk

Defaults are only a small part of the picture, depends on numerous other factors such as loan-to-value, default amounts/dates amongst other factors, if you give us a bit more info, then perhaps we can supply some guidance.

shaun12uk

Well basically LTV would be 80% which would require a 120k mortgage, defaults are from 12 months ago on two loans which are now satisfied. I am on a 32k salary.

kingstreet

Date defaults registered?

Amounts?

Dates defaults satisfied?

ACG

Difficult but not impossible.

I would speak to a broker to get everything down on paper and let them do the leg work as i dont think you will get this with many (if any) high st lenders.

shaun12uk

Is there any rules about historical defaults in terms of time lapsed in regards to applications if everything else stacks up i.e. no current debt and acceptable LTV?

kingstreet

The smaller and more historic the better, where defaults are concerned, for most lenders.

Typically, a lender's criteria will say something like;-

"no more than one default, registered more than three years ago, satisfied within three months of registration and for less than £500."