Mortgage - Credit History just cleared....

Brussel_Sprout

Hello,

Firstly, i had a bad credit history due to past defaults on a loan. All paid off via a DMP and my credit file is now clean as its over 6 years since the defaults - Hurrah!

In October my husband and I went to see our current mortgage lender and asked if they would consider me going onto a joint mortgage with my husband - at the time the defaults were still showing on my file - I didnt pass their credit check, they sent it to their underwriters who did agree that it was a long time ago but they were not prepared to give us a joint mortgage.

Obviously we were gutted but accepted it and decided to stay where we are.

My file is now clean as of December, due to a misunderstanding I thought that defaults would be showing for another 3 years hence us approaching the bank when we did.

Now that my file is clean what is the likelyhood of being considered? Or is my lack of credit history going to become an issue? I have 1 credit card which i pay off in full every month, Ive had that for 18months, I have a mobile phone contract, and a NEXT account with a small credit limit, not used.

I am the higher earner, just by 2k, and we have an income of £82k, but we wouldnt be wanting the full amount that we could potentially borrow.

In addition to this we are planning to start a family, what is a mortgage lenders view on agreeing to mortgages when one of the parties is pregnant - Im not but its just a hypothetical question!!

Also, would i have to declare that I ve had defaults in the past or do I just keep quiet about that now, and forget that it ever happened?

Thanks

Thrugelmir

When did you finish the DMP?

Brussel_Sprout

Everything was cleared in November 2011.

Thrugelmir

Then the DMP may well impact your application. In many ways worse than a default from a mortgage lenders perspective.

Dave_Ham

Speak to a broker..

This should be achievable although always represent yourself with honesty or may come back to bite you further down the line

Good luck

Brussel_Sprout

Forgive me for asking a stupid question, but how would they know about the DMP?

Dave_Ham

They may not, but internal records can potentially be viewed and many lenders are part of same group.

Additionally have you checked all 3 credit files, not all banks use the same one

Experian, Equifax and Call Credit

Brussel_Sprout

Yes all 3 are fine now.

We'll go and see a broker,

Thanks!

Thrugelmir

Brussel_Sprout wrote: »

Forgive me for asking a stupid question, but how would they know about the DMP?

Be marked against the account on the credit file.

Credit agencies are provided with and supply a number of metrics. That go far beyond the old fashioned account balance type of credit checking.

Brussel_Sprout

So the fact that my file looks clear, it still has that attached to it?

What's the point of the defaults being removed if it still effects things?

Thrugelmir

Brussel_Sprout wrote: »

What's the point of the defaults being removed if it still effects things?

A default and a DMP are entirely seperate matters.

If the information was not available then it would be worthless to lenders in assessing applicants.