Can I get a Help to Buy mortgage with 1 default?

David1110

Hi,

I am renting currently at £650 a month and have rented now for 5 years without missing a payment.
I want to buy a house with my daughter, she's 21 and lives with me.

Question: I want to buy a cheap house @ £150k, we have 5% between us, so we need a help to buy as our joint income is only £38k.

My daughter has a clear credit file, unfortunately I have one single default of £6k with Santander from May 2011, the default is satisfied.
They refuse to remove it and have been quite brutal in their replies (so much for a fair bank).
It was a stressful time when it happened, my dad had cancer, I was his sole carer and I took my eye off the ball and was exhausted seeing him daily and taking him to appts. This seems to be ruining my life, it's awful and there needs to be a review by the government on the hardship it puts people into.

Is it possible to obtain a mortgage on help to buy with a single satisfied default from 3 1/2 years ago?

Thank you for your time.

ACG

There is only 1 lender I can think of who would consider this.

If they ask for an explanation as to the adverse, I dont think it would be wise to try and shift the blame. Appreciate its a difficult time and I cant really imagine what it would be like but telling a bank that another bank are in the wrong for defaulting you after not paying isnt going to go down particularly well.

If you speak to a broker there should be a lender who will consider it but in the main that is a pretty big default so most lenders are going to have issues at 95%.

stator

It will be difficult. Different banks will have different criteria, I don't know if any allow defaults in the last 5 years. You could try a specialist broker.

David1110

Ok thanks both. So it doesn't look good.
I had no intention of blaming the bank, Santander however have been quite cold and show no compassion.

I'm a world where forgiveness and second chances is extolled, it seems to me that the default burden many people suffer doesn't fall into this area. It quite simply ruins lives.

Cheers.

ACG

Speak to a broker, there will be a lender. Not many, but you only need 1 so its worth giving it a go.

David1110

Thanks ACG, appreciate your time.

James_B.

David1110 wrote: »

I have one single default of £6k with Santander from May 2011, the default is satisfied.
They refuse to remove it and have been quite brutal in their replies (so much for a fair bank).

What's unfair about correctly recording a settled default?

What would be unfair would be to not allow other lenders to see your history. It is their money that you are asking for, so it's only right that they get to see what you've done in the past with financial obligations.

If they think that a default which is then settled is "no big deal" then they can still lend to you.

wolfplayer

David1110 wrote: »

Ok thanks both. So it doesn't look
I'm a world where forgiveness and second chances is extolled, it seems to me that the default burden many people suffer doesn't fall into this area. It quite simply ruins lives.

And yet you seek a lender to provide you with a lot more debt.

:doh:

There is no negative equity when you're a tenant who rents.

wolfplayer

David1110 wrote: »

I'm a world where forgiveness and second chances is extolled, it seems to me that the default burden many people suffer doesn't fall into this area. It quite simply ruins lives.

Apologies. I misread that bolded word as 'debt' when replying above, rather than 'default' - which true enough does have consequences.

Although excessive debt can ruin lives.

Thrugelmir

David1110 wrote: »

I had no intention of blaming the bank, Santander however have been quite cold and show no compassion.

I'm a world where forgiveness and second chances is extolled, it seems to me that the default burden many people suffer doesn't fall into this area. It quite simply ruins lives.

Santander are a bank, a business not a counselling service.

Keep your nose clean and you'll get your second chance. As the default will age and eventually disappear.