any brokers think this is possible?

hopefulman

I have seen a house I would like to purchase for £280,000 the estate agent has suggested £265,000 would buy it. I have a 5% deposit and could possibly go up to 10% at a stretch. I earn £60,000 a year and have no other debt's.

The problem is I have a default from June 2009 for £1800. This has only just appeared on my credit report in November 2014 from a company called Lowell Financial. I have been in correspondence with them asking for copies of the paperwork it relates to but at the moment they have not been forthcoming. So I am obviously at the moment unwilling to just hand over £1800 to a company I have never heard of. Apart from this I have no other blemishes on my report.

My question is will this stop me getting the mortgage I am looking for?

ACG

That alone should not be enough to prevent you getting a mortgage, however you may struggle to get high street lenders as its not a small amount and has not be satisfied.

I would suggest you speak to a broker.

hopefulman

Thanks ACG,

Does the deposit and income multiples sound do-able on this with the default?

How do I find a broker that would have knowledge of this sort of thing?

ACG

They do sound possible - albeit on the tight side. I dont think you will need 10% but you may need a little more than 5%. If you can get to 10% you will find the rates drop.

Are there any friends or family who can point you to a broker? Avoid the estate agent based brokers if possible - most gripes against brokers on these forums tend to be estate agent brokers.

hopefulman

Thanks Again.

I thought with 5% and this I wouldn't have a chance.

Family have all paid off mortgages and friends have just gone to their bank. So not sure where to approach for someone who will know where to go.

ACG

There is a site called unbiased where you can untick sponsored listings but personally I would probably just use google.

hopefulman

I had spoken to the "which" broker a couple of weeks ago and they said with that default there is no way. But the person I spoke to didn't seem to understand that the default was 5 and a half years ago and will drop off in 6 months.

ACG

Maybe find a smaller local broker or a broker comfortable doing adverse credit. It might be possible to place this at normal rates, if not a touch above should be achievable.

hopefulman

Thanks ACG I have sent you a PM

Thrugelmir

hopefulman wrote: »

But the person I spoke to didn't seem to understand that the default was 5 and a half years ago and will drop off in 6 months.

Debt collection agencies often resort to CCJ's these days. Until the default actually has disappeared there's no certainty. The issue is that it isn't settled.

Dave_Ham

As ACG is implying, this certainly sounds achievable for an experienced broker.

Lowell do a lot of collections for the Lloyd's group and this may be the source, although satisfied or unsatisfied I would expect this to be achievable on fair rates.

There is a fair drop in rates from 5% to 10% deposit.

If you have pm ACG for help, he knows what he is doing..

Best of luck