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Defaults on Credit File-chances of a new mortgage
Scubaboy777
Posts: 5 Forumite
Hi,
I have a mortgage on a variable rate and looking to fix the rate. I'm also wanting to move house so my mother who is in ill health can live with me.
The trouble is although I have never defaulted on my mortgage, I had ALOT of trouble with a high street bank where I had a bank ac,credit card and loan. I had huge amounts of fees piled onto these making it impossible to clear the debt. After a 2 year struggle trying to make arrangements and the bank 'losing payments' despite me having receipts, I went to the Ombudsman. The bank in question apologised and refunded all the fees and I cleared the debt. All 3 debts show as defaults but satisfied.
I have spoken to my current mortgage lender who said they will put me onto a fixed rate deal but if I move house, they will credit check me etc and treat it like a new mortgage application.
I will actually be reducing my mortgage when I move house, so it will be 40% LTV. I am very worried that I won't get a mortgage or the rate will be very high.
Can anyone please give me any indications of the likely outcome?
Many thanks in advance for reading this.
Very worried ....
I have a mortgage on a variable rate and looking to fix the rate. I'm also wanting to move house so my mother who is in ill health can live with me.
The trouble is although I have never defaulted on my mortgage, I had ALOT of trouble with a high street bank where I had a bank ac,credit card and loan. I had huge amounts of fees piled onto these making it impossible to clear the debt. After a 2 year struggle trying to make arrangements and the bank 'losing payments' despite me having receipts, I went to the Ombudsman. The bank in question apologised and refunded all the fees and I cleared the debt. All 3 debts show as defaults but satisfied.
I have spoken to my current mortgage lender who said they will put me onto a fixed rate deal but if I move house, they will credit check me etc and treat it like a new mortgage application.
I will actually be reducing my mortgage when I move house, so it will be 40% LTV. I am very worried that I won't get a mortgage or the rate will be very high.
Can anyone please give me any indications of the likely outcome?
Many thanks in advance for reading this.
Very worried ....
0
Comments
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Post on the mortgages board with some more financial information. The resident brokers can then express a view.0
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Speak to a broker.
At 40% LTV i would be very confident you can get a mortgage.
Rates wont be market leading, but they will not be "high".
Assuming the defaults are dated 2-3 years plus then under 5% should definitely be possible, if not under 4%.
I would get your reports down to a decent broker (not an estate agent broker) and see what they can do.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you ACG, much appreciated. Will do. Sorry misread your post. The defauolt notices are just over 1 year old ...0
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Just to re-iterate, the defaults are just over a year ago. Would this affect the decision if they were over 2-3 years?
Thank you0 -
What are the dates of the defaults being registered? Amounts? Date of satisfaction?
Which lender was it you had the issues with?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Less than 2 years would limit your options, i would still say under 5% should be achievable.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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What are the dates of the defaults being registered? Amounts? Date of satisfaction?
Which lender was it you had the issues with?
LloydsTsb
Default Date - July 2010, satisfied April 2012 £7858
Current a/c
Default Date - June 2012, satisfied July 2012 £3328
Default Date - June 2012, satisfied July 2012 £31320 -
With these dates and values, you are likely to achieve finance but on slightly higher than average rates..
Broker required as statedI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks DaveHam, will let you know the outcome0
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