Getting a Mortgage with defaults

Tommo565

[FONT=&quot]Hi all. Long term lurker first time poster![/FONT]
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[FONT=&quot]My girlfriend and I are in the process of buying our first home through the 20% deposit help to buy scheme. We've gone through a mortgage broker, and they've come back and advised us that we're unlikely to be able to get anything with help to buy since my girlfriend has a credit default from 2 years ago (Feb 2012), and that we could possibly use the 95% mortgage guarentee help to buy scheme however the terms are likely to be unfavourable. FWIW my credit rating is excellent but I can't afford to get the mortgage on my own and my girlfriend is absolutely devastated so I'd be really grateful for some advice.[/FONT]
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[FONT=&quot]1) Would it be worth trying a different broker? Perhaps a mortgage through my girlfriend's current account provider (Halifax)?[/FONT]
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[FONT=&quot]2) Is there anything my girlfriend can do to remove the default? Will clearing her debts help? She has a 'fair' rating on Experian and owes approximately £4000. We've borrowed our deposit from our family which is why we haven't used it to pay off debts before you ask![/FONT]
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[FONT=&quot]3) Are there any alternative options for us? Using a guarantor or a larger deposit? [/FONT]

kingstreet

You can't use HTB - MG with adverse dated in the last three years.

If it was registered in February 2012, I can see little choice but to wait until February 2015 when it gets over three years' old which will help your HTB - EL application too.

I wouldn't carry on doing speculative credit searches. Is it visible on all three versions of her credit file?

A default cannot be removed unless it was registered in error.

Tommo565

What about applying without HTB?

TakeItAsRed

Mr Kingstreet,

Not that i doubt you, as you always seem to be very helpful in a lot of posts i have read, but where does it state you cannot use the HTB EL or MG with adverse credit in the last 3 years?

I have looked into the HTB, a fair bit, spoken to the HTB agents, and also read the official guidance, i didnt see this anywhere.

As far as the HTB agents told me, if you pass the Credit Checks at your bank, and pass their own affordability equation, then you are ok to use the facility, obviously with a qualifying property.

I would be interested to know at which point in the process the HTB people run a credit search etc, as i am told by them directly that they dont, and rely on the banks lending criteria.

Thanks

Teaandtoast0124

King street is right. Help to buy mortgage guarantee is a lot stricter than the help to buy equity loan. No adverse in three years is correct for the mortgage guarantee. Where as help to buy equity loan is up to the lenders to decide with light adverse credit history.

Tommo565

The default isn't showing on Equifax but it is with Experian. What's the third one? Is there a lender that will use only Equifax?

Thanks for your help on this - we both really appreciate it!

Newbie_loan

We are in a similar position just waiting to here back from the broker now on whats what!!

Me and my partner have £10000 given to us a gift, however we have around 5k of debt. Credit caress etc.. We can get this down by April to 3k and still have the same saved!!

My girlfriend has a few AP's on her credit report from her student days in 2010.

Fingers crossed the broker might be able to get us some sort of mortgage.

We are applying for shared ownership though. Even with all the negative views on here about it!!

Teaandtoast0124

Natwest only search equifax

Tommo565

Teaandtoast0124 wrote: »

Natwest only search equifax

How do you know?

Teaandtoast0124

Because i got an AIP from them and they only searched equifax

Kryptothesuperdog

Teaandtoast0124 wrote: »

Because i got an AIP from them and they only searched equifax

When it comes down to the nitty gritty, is there not a good chance an underwriter is not going to scrutinise experian and equifax?