Is There Life After A Default

Samwaydors

Okay, so I have battled for the past 3 weeks to try and get said default removed from my credit file, but to no avail. I now admit defeat and yes, it was my own silly fault for cancelling a direct debit too early with Orange which resulted in £40 default.

I would really like some serious advice if there is anyone out there that can give me a straight up honest opinion. Okay here goes ...

I am looking at a mortgage next year around the time when the default will be just over a year old. I am looking at purchasing at £200,000 with a £30,000 + deposit (LTV 15-17% max) I am an existing home owner, I earn a £50,000 a year salary and have been in the same job for past 15 years. Nothing else detrimental on my credit file, no debt except for credit card balances which I am trying to pay off.

The question is, am I clutching at straws in the hope of getting another mortgage, or do I wait until the registered default is older ? I really do not know which way to turn. I will be using a broker, as I know my existing lender Santander will probably flatly refuse. My current mortgage is my second mortgage with Santander and have just finished paying off a loan with them too.

Any advice, would be very much appreciated. Thank you

kingstreet

If that's the only negative, you'll be alright for 80% to 85% loan to value.

Samwaydors

Thank you Kingstreet it has knocked my credit score down to poor, so I am trying to pay off my credit cards to try and improve my available credit. I have had a late payment for Barclaycard over 18 months ago, which may go against me too. So I am just keeping my fingers crossd for a good outcome. Will the LTV go in my favour or do you think I need to save more. Your advice is very much appreciated. Thank you

kingstreet

The "score" you are given by a CRA is not seen by a mortgage lender and not taken into account. A mortgage application contains all the data the lender requires, together with the raw data from the credit search, not what a CRA thinks of you.

There have been a number of "999 and declined" threads on here over the years...

ACG

Ignore the score - that should become a slogan.

At 85% or under you should be fine. Speak to a broker or check the lenders the criteria before submitting.

I suspect the likes of HSBC/First Direct will decline. But in the main you will be fine.

Aurum_Citizen

I got the Woolwich Springboard 95% with 1 Default within last 5 months. What that means for you I have no idea!

Jayke92

Samwaydors wrote: »

Okay, so I have battled for the past 3 weeks to try and get said default removed from my credit file, but to no avail. I now admit defeat and yes, it was my own silly fault for cancelling a direct debit too early with Orange which resulted in £40 default.

I would really like some serious advice if there is anyone out there that can give me a straight up honest opinion. Okay here goes ...

I am looking at a mortgage next year around the time when the default will be just over a year old. I am looking at purchasing at £200,000 with a £30,000 + deposit (LTV 15-17% max) I am an existing home owner, I earn a £50,000 a year salary and have been in the same job for past 15 years. Nothing else detrimental on my credit file, no debt except for credit card balances which I am trying to pay off.

The question is, am I clutching at straws in the hope of getting another mortgage, or do I wait until the registered default is older ? I really do not know which way to turn. I will be using a broker, as I know my existing lender Santander will probably flatly refuse. My current mortgage is my second mortgage with Santander and have just finished paying off a loan with them too.

Any advice, would be very much appreciated. Thank you

Hi, I have had exactly the same problem.

It was also with Orange, and I did actually call them to cancel my account, which they confirmed over the phone, but somehow the advisor I spoke to managed to mess up and not log anything.

After this I moved house, and it seems Orange wrote to me to try and claim the money, but I didn't receive those letters so of course I didn't pay anything.

A few months later I started getting letters from a debt collection agency, which I initially ignored as spam but eventually realised I may have to take seriously. After multiple calls between Orange and the agency, I finally gave in, and decided that paying £50 was easier than eventually being dragged to court, and I thought that paying it off then may at least stop it going on my credit rating.

This turned out to be a fairly naive view, because this morning I was rejected for a mortgage on the grounds of missed payments to Orange.

Now I am simply not in a position to be able to come up with a 15% deposit, so I would like to know if there is any way I can fight this? I feel extremely hard done by as this was an error by Orange, not me.

I have tried the ombudsman service for telephone companies but Orange (And EE) aren't on their list of suppliers so there is nothing they can do.

Is there anything that can be done?

Samwaydors

I am sorry to hear of your predicament. I think the only way forward is a bigger deposit. I have read a lot about my situation, and the more risk you are to the lender then the higher deposit you will require. Obviously, a lot will depend on your own individual circumstances.

There are some really nice and experienced people on here who may be able to help you further. It is very frustrating, I went to the CEO at Orange and to be fair they were really nice but couldn't do anything to help. I have just put this down to a bad experience, trying to think positive and move on. Proof in the pudding will be next year when I try to apply for another mortgage. I am confident in the fact that I am going to have over a 15% LTV, and just hope that I am not being naïve in thinking that this will help ...... onwards and upwards !!!!

Jayke92

So after some googling it appears there may be a solution.

It had been suggested that we can send a goodwill letter to Orange, or make a call and try and get to the right person, but it sounds as though that may be something you have tried?

ACG

Get all 3 credit reports down to a decent broker (not an estate agent). Due to it being £50 you might get away with a 90% mortgage. A lot will depend on the date of the default etc and everything else but there may be an option or 2 available.

kingstreet

Aurum_Citizen wrote: »

I got the Woolwich Springboard 95% with 1 Default within last 5 months. What that means for you I have no idea!

If you'd had a 25% deposit of your own, you'd have got the mortgage without the support.

The springboard makes you a more desirable borrower, so adverse credit has less of an impact.