Will Halifax accept our mortgage with a default?

ljh1989

I wonder if anyone can give me some advice? We have reserved a new build house that we want to buy. We have been approved for a help to buy loan and we've offered 299,950 For the house.

We have a deposit of about 8-10%, we've been asked to put down 8% during the first soft search that the new homes group did. We've applied to halifax for the rest, but so far we have only had a soft search done and the valuation has been booked for Thursday.

My partner has a default on his credit file which was satisfied last year but many satisfactory credit accounts. But for the last 12 months we've been fine, no late payments or anything like that. We have got this far, are we likely to be turned down at the last minute? We earn well, about 70k between us on basic salaries and then some bonuses.

Only had my parents pay check requested so far.

I'm so stressed! Help?

Thrugelmir

How much was the default for?

ljh1989

£4000, it was in 2012 and then settled last year.

TLM_77

If they say no, find a reputable broker who will be able to place an application with a lender that will be more considering regarding the default because a 4k default is quite large.

ljh1989

But do you think we are likely to be refused? I'm guessing they know about it, the MA knew about it and likely advised them, and we got through the initial stage. It all happened at our current address so I can't see why it would take much looking for in a Soft search.

Just want to know roughly so I don't get my hopes up too much :-(

Thrugelmir

That's a major negative given the LTV you are applying for. Let alone the mortgage you are taking on.

Lenders may decide that they would prefer to see you manage your money better for a while.

G9G

I'm in a very similar situation, I am buying a house for 296,995 and have a default on my account for 2,345 GBP from 2010 that was settled last year. I have received a mortgage offer from Halifax, however only for 65% LTV, I work abroad on rotation which will have been a factor in their decision as well though.
At least it answers your question that they will give out mortgages with a default - but I won't be 100% on this until I get the keys in my hand!

Dave_Ham

Ok, few things to clarify here.

On both the OP and subsequent poster, Halifax would not lend if they were aware of either default as they are outside of their criteria.

That does not mean that they will not lend, as through luck or otherwise; they have not linked the default to the client file.

The 65% restriction is one based upon credit file and is Halifax one up from fail, so this would be based upon credit file.

OP - why have your parents payslips been requested?

Typically if Halifax have booked a valuation, then the case will not be subject to any further checks at this point and subject to valuation and general underwriting; a mortgage offer will be issued.

There system is a rolling credit checking system though, so if the addresses/history do catch up then potentially they could decline further down the line although this is unlikely.

ljh1989

I meant partner's, it autocorrected to parents.

We've only had a soft search done, they haven't given us the First Check that we've had before with Santander. But I just don't understand why things wouldn't crop up in that soft search (I.e. it's relatively recent and it's at our current address where my partner has lived for over 6 years, no nothing messy!)

Valuations tomorrow, they're hoping to let us know on Friday. Otherwise we may have to look at an adverse credit lender or not move at all.

Are you saying that if we've got this far, we might be in the clear?

kingstreet

On which version(s) of the credit file does the adverse credit show?

Dave_Ham

Typically you would not get this far if they had detected this, so whilst not in the clear until you have the keys; I would suggest you have got incredibly lucky and likely to be ok..