2 defaults and mortgage?

omas

Hi, I am planing to take out mortgage using Help to Buy scheme and 5% deposit. I have at this moment £12k and would like to buy a house for up to £140k. I've seen mortgage advisor and started to completing all paperwork. Unfortunately I found out I have 2 defaults and both from this year :eek: Both are marked "1" on me credit reports, one is from February paid one day too late for £28 and the other one is from March paid week late for £48. Do I have any chance to get mortgage? Are there any companies how could still offer me mortgage or do I have to wait whole 6 years to remove them from my credit report?

andilong1

Hi Omas,

Firstly it looks like these are late payments and not defaults ? a default is not usually issued for paying late by a day or even a week, but a consecutive amount of non-payments, plus you would have been served a default notice which you would have received by post, and you would have known about it.

Secondly a 95% mortgage is usually from what i have read only possible with a squeaky clean credit file and recent late payments certainly put you out of this bracket, however talk to an independent local broker who will assess your case individually and give you a better idea if you have any chance, maybe you need to save a little more for the deposit ?

ACG

A 1 is not a default, its a late payment.

IF they are late payments, it will be possible but some lenders may decline it.
IF they are defaults, then you have no chance. 2 defaults this year and a 5% deposit would not get through with any lender.

omas

I've got credit report from:
Call Credit/Noddle - both shows as AA (General code to indicate the account is in early arrears i.e. 1 to 2 months/payments in
arrears)
Equifax - both shows as Status - 1 Payment Late
Experian - waiting for my report