Mortgage with old default

tim74

I am planning to apply for a mortgage as a first time buyer and worried about some old defaults in my credit file. I am seeking to buy £200K home with 5% deposit (£10K). I am employed full time for the past 8 years (4 years with the same employer) and earning £51 K/yr. My wife is a homemaker so my income would be considered for evaluation. In terms of debts, I have a Natwest personal loan with £200 monthly payments and 12 months away for paid in full status; no missing or delayed payments (all up to date).. I also have a Capitalone credit card but with zero balance.
My concerns are about old default notices in my credit files. Two of the defaults are with HSBC and both of them,will be reported until 8th August 2015 according to credit reports. The 3rd default is with Sainsbury's bank credit card and that will be reported until 10th December 2015. All three defaults are satisfied but I am worried about the consequences. I am planning to apply after August and this means only one default would show in the reports (the default value of Sainburys is £1.9K). I would appreciate any advice as I am literaly confused at the moment about my options and chances of securing a mortgage. Many Thanks.

ACG

Based on what you have said , im sure there would be atleast 1 lender who would accept you now - rates of around 6%, although high street rates may be possible.

If you were to wait until august I think you stand a better chance of getting something at high street rates but if not you still have 6% as a potential option.

I do think you need a good experienced broker though.

tim74

Many thank for your response which is re-assuring.

amnblog

Why would you not wait for the final default to drop off?

tim74

Thanks for your note.
I am also considering that option as well (delaying until December) but wanted to get into the ladder ASAP. It is a question of price escalation VS saving on interest rates.
One other reason is my age as I am turning 41 this year and concerned about the age factor (mortgage completion prior to retirement age for approval). Any comments based on your experiences would be appreciated.

ACG

The press have blown a lot about peoples ages out of proportion. Your age will be a factor in that the longer you leave it the less the term will have to be, the less the term is the less you are likely to be able to lend.

That being said, at 41, im sure you can still get a 25 year term mortgage without too many difficulties.

Thrugelmir

tim74 wrote: »

It is a question of price escalation VS saving on interest rates.

Rising interest rates will put downward pressure on prices.

With a mortgage. You are actually better off borrowing less at a higher rate. As perverse as it may seem. So keep saving.

tim74

Many Thanks for all your advice. I will update how I get on.