Defaults affecting mortgage

sparkle__3

Hi everyone, first time post so hope this is in the right place!

My partner and I are first time buyers and we have been looking at getting a mortgage. We have at least a 5% deposit at present and would be engaging in Help to Buy.

I've had a copy of my credit file for a while and I have a little credit card with Aqua just to get my score up. Touch wood I've never had financial problems it's just been working on building up the score.

Unfortunately during the whole mortgage process, my partner started a credit report on himself to make sure we would be able to get one and he found two defaults. One is for a phone company and will have passed the 3 year mark later this year (I was told by a broker that lenders look more favourably once they have passed this although I know it will be there for 6) for almost £500 and another is for a payday loan registered in 2013 for almost £1000. He wasn't aware of these and received no letters from either, although if it was me I would have made sure I kept on track with my own loans!

He has set up a payment plan with the phone one and this doesn't seem to be presenting a problem mortgage wise when we've spoken to the broker as they would be able to get us through on less common lenders however they confirmed today that its the payday loan which will stop us until at least next year. He's got the money to pay off the default in full and they've offered him a settlement fee but I was just wondering if anyone's been through anything similar, managed to get it off their report or just the best way to proceed really?

Sorry for the length just wanted to give some background and all comments appreciated! These were when he was a lot younger and before we were together otherwise I wouldn't have allowed this to get to a default stage being so careful!

On_my_way

Hi

I don't think he can get the default removed but he should pay the debts as soon as he can.

Ultimately you may have to wait a while and/or get a larger deposit together. You may not be able to get access to the best rates so you should both continue to save as much as possible for when you apply for a mortgage.