Mortgage application with default on file

Optimisticred

I appreciate this is very vague but I have a default on myaccount for £1,000 from nearly 3 years ago. The default is classed as settled.

At what point do you think I will be able to qualify for amortgage either with a mainstream provider or net based provider? Eg 3 years after, 4years after, 5 years after…..or will I have to wait until it drops off?

A few facts to help:
-Expected LTV10~15%
-Annual income £35,000
-within next 12 months I will have no debt
-Have credit card that has been used correctly

Probably although it will be 12 months at least before I will be in a position to apply but I ma just trying to get an idea.


-Current home owner, never missed a payment



Thanks in advance for help with such a vague question!

ACG

With a 15% you could get a mortgage today. Rates wont be market leading but they certainly would'nt be bad. Under 5% would be achievable.

I would suggest speaking to a broker when the time comes.

10% may still be possible depending on everything but 15% i would be confident of getting through.

Dave_Ham

With a 15% deposit, you will be applicable now.

10% deposit, more likely another 3 years but does depend upon the details.

Get close to your Experian, Equifax and Call Credit reports and have a free chat to a broker if you are unsure.

Good luck

Optimisticred

Thanks so much for your replies.



Ok let’s say worst case scenario is that 12 months from now it’s:



-4 years since default (Marked as settled)

-I have 10% deposit

-I have £1000 debt on credit card



By my thoughts on those answer’s id qualify for a mortgagebut probably at higher rates of say 4.9~5.9%?

ACG

At 90% it comes down to what is showing where and the overall application, it effectively comes to score. There are no adverse lenders at 90% so you would have to pass with a mainstream lender - that could be hit or miss.

At 85% you meet criteria with a couple of lenders - especially once the default is another 12 months old, in which case short of something were not aware of its pretty much a sure fire thing a mortgage could be placed for you.

Dave_Ham

I love the fact that you ask a question and then give an answer yourself - specifically entertained me that it is the wrong one.

At 90%, you have a very small chance of being able to achieve a mortgage on any rates.

Optimisticred

Ok so the aim is to hit minimum 15% then and ensure no debts remain. Looks lime i'm in for a long saving slog....or my current houses decides to dramatically increase in value!

Thanks for the advice although Dave not sure where the need for the sarcastic comment came from.

Dave_Ham

Its a forum, its nice to have opinion (banter) and it is a Friday.

The debt does not necessarily need to be £0 if the mortgage is affordable.

Would concentrate on the 15% deposit first and then look at the entire picture.

Good luck

Optimisticred

Dave_Ham wrote: »

Its a forum, its nice to have opinion (banter) and it is a Friday.

The debt does not necessarily need to be £0 if the mortgage is affordable.

Would concentrate on the 15% deposit first and then look at the entire picture.

Good luck

Thanks Dave