Explination of Lending Criteria?

Jason_Bourne_2

I'm trying to prepare myself as best as I can for the day I can eventually apply for a new mortgage. Hoping to be debt free in the next few months and move house summer 2015.

If someone could help me understand some of the terminology it would be appreciated.

Max number of defaults - GE Money have one category which states "2 in last 24 months".

Does this refer to defaults in general, settled defaults or default dates?

All my defaults (6) are 2010 or 2011 so they don't drop off til 06&07 but as long as I have no more than 2 unsettled in the 24 month period before I apply then I would match this part of the criteria?

Thanks in advance...

kingstreet

Number of defaults and the dates they were registered.

So no more than two, in the last two years.

holly_hobby

This refers to no more than the registration of 2 defaults in the 24 mths preceeding your application.

Say you apply Dec 2013 (baring in mind its already 20 Nov) .

Your 2010 default is disregarded, as registered more than 24 mths pre application.

If your 2011 default is pre Nov 2011 it is also disregarded (as again os of the 24 mth catchment period), if it was registered Dec 2011 then its obv counted as 1 instance, as its within the 24 mths preceeding the date of your application (assuming you make it in Dec).

If you leave it until next yr (ie 2014), then they'll both be disregarded - although you MAY still be asked to explain the underlying circs surrouding the 2 defaulted agreements.

Has your broker not explained this to you ?

Hope this helps

Holly x

Jason_Bourne_2

holly_hobby wrote: »

This refers to no more than the registration of 2 defaults in the 24 mths preceeding your application.

Say you apply Dec 2013 (baring in mind its already 20 Nov) .

Your 2010 default is disregarded, as registered more than 24 mths pre application.

If your 2011 default is pre Nov 2011 it is also disregarded (as again os of the 24 mth catchment period), if it was registered Dec 2011 then its obv counted as 1 instance, as its within the 24 mths preceeding the date of your application (assuming you make it in Dec).

If you leave it until next yr (ie 2014), then they'll both be disregarded - although you MAY still be asked to explain the underlying circs surrouding the 2 defaulted agreements.

Has your broker not explained this to you ?

Hope this helps

Holly x

Thanks for that Holly.

I haven't got as far as a broker, once I've settled my remaining defaults and saved up some deposit I'll need to find a broker.

Trying to gain as much knowledge as I can and research lenders as best as I can before going to a broker.

Was thinking about getting a broker for advice about 6 months before I plan on moving on, that seem ok timescale?

Ta much

ACG

Find a broker, using GE for this is like using a sledgehammer to crack a nut.

This could be potentially placed tomorrow whether the defaults are cleared or not. Im not suggesting the defaults should not be cleared for the record.