Mortgage with Small Default

luemas

Hi Everyone!

Was hoping we could grab some advice. Basically we have just been turned down for a Help to Buy mortgage application with Nationwide :eek:.

After declaring to our broker that we had no loans, repayments etc my girlfriend did not pick up on a tv she bought on finance a year back. She defaulted on the final payment of £50 for the TV after she believed she had finished all her repayments and this was left unpaid for a year

our AIP was for borrowing of £248k. So my questions to you fine folks are...

1. Are lenders still likely to give us all the money we require.
2. If so, how much is likely to affect our rates (We we quoted some pretty good ones around 2%)
3. Is there any 'fixing' we can do, Is it likely we can get this taken off her credit score?

Any help and advise would be massively appreciated! :beer:

Cheers,
Sam

Mortgage_Mark_2

1. Yes - I can think off the top of my head of one lender who wouldn't see this as an issue; what did your broker say?
2. They may be marginally higher, but you may still 'fit' with other High St lenders. Again, speak to broker.
3. No. Not until 6yrs after the date of default (i.e. the date the account was classed as defaulted, not the date of repayment).

amnblog

Did your broker not check your credit file before application?


Does your broker not have a plan B.


We have don't a number of equity loan deals with minor blemishes on the credit file so all is not lost.


If your current broker cannot assist you, consult another.

luemas

Great! Thanks for your responses guys!

We're biting our nails until our broker opens at 9! When we spoke last night she was looking into NatWest. We're just nervous as we've heard horror stories of failed applications causing further credit nightmares.

Its also worth mentioning we ran Experian credit scores and we both come out in the 900s in excellent, hence we were so shocked missed this :S

francesca.n.cobb

Ok - Thank you.

I have been in contact with Experian this morning and they have advised that I put a notice of correction on my account which explains the misunderstanding from my part and asks lenders to take this into consideration. Do you think this will help at all?

Malmo

francesca.n.cobb wrote: »

Ok - Thank you.

I have been in contact with Experian this morning and they have advised that I put a notice of correction on my account which explains the misunderstanding from my part and asks lenders to take this into consideration. Do you think this will help at all?

A notice of correction in a best case scenario will cause a referral and hence delay in the underwriting process and the worst case is that it will trigger an automatic rejection as some lenders simply don't want to deal with the extra administration and associated expense of a notice.

Malmo

We're biting our nails until our broker opens at 9!

Is the broker based in an estate agent or a national one like L&C?

Its also worth mentioning we ran Experian credit scores and we both come out in the 900s in excellent, hence we were so shocked missed this :S

But those "scores" mean nothing and should be ignored. The historical account & public data the agencies hold is important, not their consumer scores, which are sold as a marketing feature. UK individuals do not have a central or universal score / rating. Lenders assess applicants based on their own criteria and internal scoring algorithms.

Are @luemas and @francesca.n.cobb the same users or different users? I'm a bit confused.

luemas

Are @luemas and @francesca.n.cobb the same users or different users? I'm a bit confused.

Sorry for the confusing, that is my girlfriend in the conversation.

luemas

Thank you for the help everyone, I'm delighted to say after all the worrying NatWest approved us! Hope this helps anyone whos been as scared as we were! Thank you so much for the help everybody Sam