Mortgage with defaults

Crasenqueen

Hi,
My husband and I both have defaults on our credit files dating back to 2008 ( 900 and 10 000 pounds respectively).
What I would like to know is ,will we be able to successfully apply for a mortgage from our bank who we have very good banking history with. We are first time buyers and have a deposit of 25,000.

kingstreet

Absolutely no idea.

That would depend on your bank's lending criteria.

Senior_Paper_Monitor

As per Kingstreet, PLUS ....

Are the default amounts settled if so when ?

Do you 'good (i.e active) credit' since ?

Were the defaults with that bank - what were the circumstances ?

What is the purchase and mortgage amount ?

What is your income (employed, slef employed - how long) ?

Do you vae any other financial commitments, if so what ?

amnblog

Who is the bank and are the default settled?

Crasenqueen

One default is a credit card and the larger debt was a loan with Barclays. Both are still not settled and default was registered in 2008. We a re both full time employed with joint annual income of 47 000 per annum and have been in employment for over 15 years. We both have active credit cards which are maintained very well. And had credit approved for sofa's .We are hoping to borrow around 160,000 or an amount which will keep our repayments under 900 pounds per month. Hope this is useful for you to advise. We are looking at TSB Bank.

nottoolate

the defaulted accounts will drop off your credit files next year. 6 years from their default date.

kingstreet

Loan to value of 86%?

I suspect you will have difficulty with this.

holly_hobby

Can't see TSB taking this.

Any other lender will ask the question why the defaults occured (ie we're looking for can't pay due to unforseen financial circs, not a case of won't pay), and unless they were the subject of a dispute or have been incorrectly registered, why you have chosen not to use the 25k deposit you have saved, to instead repay your o/s creditors on the defaulted credit agreements ?

Its about being able to demonstrate to the lender a change to the original underlying circs resulting in the defaults, and a responsible attitude to financial commitment and creditors.

There are adverse lenders about (<85% so you'll need to up your deposit), but you'll pay rate wise, other sensible option (without commenting either way re repaying defaulted debts), is to wait until 2014 after which they will expire from your credit record, settled or not.

Hope this helps

Holly