Halifax mortgage - Post DMP

macca5000

Hi there,

I currently own my own home and have a mortgage with the Halifax. I've never had any repayment problems and met the mortgage payments every month for the last 4 years.

Shortly after getting the mortgage I realised I needed to take decisive action with the level of unsecured debt I had. Roughly 3 years ago I started a DMP with step change in order to do this and as a result I received a number of defaults.

I have now paid all the balances in full and all the accounts are satisfied and closed.

I hope to move house next year. By the time I apply for a mortgage I hope to have 6 months of good credit history following on from leaving the DMP, but the defaults will still be on file for a further 2 years.

So my question is this...WILL I STAND ANY CHANCE OF GETTING ANOTHER MORTGAGE WITH THE HALIFAX????

Dave_Ham

Technically you will be outside Halifax criteria and therefore you will be unlikely to pass.


In reality, we have seen conservative mortgage value cases be passed on the strength of good existing mortgage conduct with credit score although technically outside policy.


Good luck

Thrugelmir

Lenders will question whether you have actually learnt from your mistakes of the past. May wish to see a longer period of improved behaviour.

macca5000

Thank you for your responses.

By the time I come to apply it will be nearly 4 years since I last defaulted.

Does this not count as part of a period of improved behavior, or will it only count once the defaults have disappeared of my file?

Dave_Ham

Improved behaviour yes, but within criteria no.


That is not me saying it is impossible, just unlikely and will come down to a credit score rather than a human looking at it.

macca5000

Do they have set criteria for the minimum score they will accept?

kingstreet

macca5000 wrote: »

Do they have set criteria for the minimum score they will accept?

A lender sets its own scorecard and compares the data from your application against its "perfect borrower" score. Provided you reach the requisite level for a pass, your application will be accepted.

The lender score has nothing to do with what Experian and Equifax tell you they think is your score, so ignore these.