Getting a mortgage with defaults

panzerfaust33

So a friend has been offered a desposit by her parents but does not have the greatest credit history.

Applicant 1 - 1 default (not cleared) 2.5-3 years
Applicant 2 - 3 defaults (all cleared) 2 years left

Combined income approx 40k, no dependents. Guarantor is available.

Does anyone know would they be able to get a mortgage with the defaults?

Any suggestions that might help them to be more appealing to the lenders in the short to medium term?

Thanks in advance.

kingstreet

Depends on the loan to value.

Depends on the amount of each default and its registration date.

They should put all three versions of their credit files in front of a broker and let them work out the best lender option and smallest amount of deposit workable.

ACG

4-4.5x income is usually available with the deposit on top - subject to affordability - kids/debts/age/commitments will all have an impact.

The rates available will depend on the age of the defaults/lenders available/size of deposit etc.

As above, best to speak to a broker as there are so many variables.

Thrugelmir

Why isn't the default settled?

Wh05apk

Provided the defaults are over 2 years old, and everything has been clean since then, this should be possible, with at least 1 lender.

panzerfaust33

Thanks for the info all, the uncleared default is being worked on at the moment, should be sorted in the next month. Spoke to a broker this afternoon and they suggested around 4x income with a 10-15% deposit would be possible with a sub prime lender.