Obtaining a Mortgage with a Default on Credit File

Samwaydors

Hi

I am new to the MSE forums, so please be gentle with me if I have posted in the wrong section.

Anyway, here goes ....
I had what I thought was a squeaky clean credit file, so on the off chance I checked it a month ago as we are looking at applying for a new mortgage next year when we move house in the Spring. To cut a long story short, I was horrified to discover that I have a default registered from Orange (T/A EE) :mad:

I have contacted Orange and basically there is nothing we can do, I cancelled the direct debit before the contract ended one month too early, I am so angry with myself !!!!

Here is the dilemma .... I have had 2 mortgages with Santander (no missed payments) and have just finished paying off a £10,000 loan in February of this year (no missed payments) with Santander. I have 18 months worth of no missed payments on any of my credit cards (which we are paying off too reduce the balance by the Spring) or on any other mobile phone contracts etc that I have.

What do you think the chances are of a) getting another mortgage with Santander with this default or b) getting another mortgage full stop. We will be looking for a mortgage between £160,000-£170,000 and will have a £25,000 deposit. The default has only been registered in April this year, so will only be a year old when we apply for our new mortgage. I am so stressed out by it all, you think you have come so far and then whoosh you are back to square one.

Any help would be much appreciated. Thank You

kingstreet

Can't speak for Santander, although they say they won't accept any adverse credit at all.

Is the default visible on all three versions of your credit file?

Samwaydors

It is on Experian and Equifax, I haven't checked the other one.

kingstreet

Some lenders supply information to and take information from, only one CRA.

If your Call Credit file is clean, you will have lender options not open to you if they only use CC.

amnblog

you can get this placed, and you may have more options next year as lenders are starting to consider treating these mobile contract defaults more leniently.

more often than not these defaults are not the result of inability to pay but administrative issues.

Thrugelmir

I have 18 months worth of no missed payments on any of my credit cards (which we are paying off too reduce the balance by the Spring)

Did you have missed payments previously?

The amount you owe on unsecured credit may impact on the lending decision.

Samwaydors

Thank you, I will check on Call Credit as well. If it is registered on all three credit file agencies do you think it will be virtually impossible to get a new mortgage ?

amnblog

Samwaydors wrote: »

Thank you, I will check on Call Credit as well. If it is registered on all three credit file agencies do you think it will be virtually impossible to get a new mortgage ?

It is very possible, use a broker

Samwaydors

Sorry, does that mean it would be virtually impossible that we get accepted for a new mortgage, or Yes it is possible. Thank you for taking the time to reply.

All payments are up to date for the past 18 months apart from 2 late payments about 20 months ago on my Barclaycard due to not having a direct debit set up, and we will be reducing all of our credit card balance by nearly half by April 2014. I only have 2 cards £2,000 on each, and a loan outstanding of £2,000.

amnblog

So it is not just the Orange default, there is a history of missed payments as well?

Samwaydors

........ yes, 2 missed payments from 20 months ago with Barclaycard.