High earner, large deposit yet with a default...

OliverCalvert

Hi all,

Wondering if anyone has advice on 'specialist' lenders?

I have an existing mortgage of £300,000 on a house worth £1m, so £700k equity.

I want/need to buy somewhere larger (growing family) but a £10k default (which is now nearly paid off) is sitting on my credit file.

I earn £150k and want to go to circa £450-500k mortgage.

Is a default basically a bullet in the head for any kind of new mortgage?

Current one is with Santander and has been paid on time every month for 2 years.

If there is hope- can anyone advise a suitable broker/company to speak to and offer any advice on what a deal might look like in terms of rates? Is it likely to be shocking 5% plus?

Thanks in advance

OC

Thrugelmir

If your circumstances are as outlined. Then the reasons behind obtaining the default may score as heavily against you as the default itself.

GMS

When was the default put in place? By whom and why did it occur?

OliverCalvert

It was a personal MBNA credit card, 18 months ago. I had a business that fell apart and it knocked on from there. It was £10k, its been paid of via a £500 a month direct debit and could be satisfied in full before a new mortgage, should such a thing be possible. Im slightly at a loss as to quite how bad the situation is, despite the fact i have a 70% deposit/high earnings. Thanks again for any advice.

Dave_Ham

I would fancy a solution here, although best to budget circa 3.5%-4%

You really need to get your Experian, Equifax and Call Credit reports and then hunt down a decent broker.

Expect to pay a fee, but on this sort of loan size well worth paying a professional to achieve a cheaper product and therefore overall saving.

£500k may be the ceiling lending wise, whilst the default is active.

All the best

Thrugelmir

The obvious observation is how you can afford to move house. Yet not meet the minimum obligations let alone settle the debt.

Lenders are not merely interest in your current financial status. A credit report also your reveals an attitude towards personal money management.