Mortgage with a default

mw123

Hello all. I hope I have posted this in the right section.
Anyway I wanted to ask a question regarding getting a mortgage with a 5 year old satisfied default. I have been to see a reputable local broker recently. I have advised him of my default and have had a decision in principle accepted with a 20% deposit (fully aware Halifax only do a soft search at this stage). I have now found a house and had an offer accepted. I am booked in to see the broker on Wednesday to put in a proper applications.

In the meantime I am just worried that I might be declined and also if it is worth applying with Halfax as I know being turned down has a negative affect on your credit report. Any advice would really be appreciated.

Thanks,
Matt.

Dandytf

I was in a similar mtg position 2003 (1 default almost 5yrs satisfied)

Got a 100%mtg with a slightly higher rate with hbos.y

Times have changed though hope someone can give you a more recent example.

If you've been honest about the default then your mtg should be fine (maybe not as much choice of providers)

forgot to add a notice of correction was added to my credit file (to explain the circumstances of the default) before the full application was complete

Teqpro

Hi Matt,

I've just received my mortgage offer with the Halifax and the full application form you mentioned, means FULL, they will ask you have you ever experienced any credit problems, do you have any defaults also the important one have you ever had a payday loan. Honesty is the best policy as they will find out.

mw123

Hi Teqpro,

Thanks for the advice. Did you have any adverse credit history or was yours plain sailing? As I say mine is all fine, no payday loans just afe fault which was satisfied 5 years ago. I was also accepted for a credit card with Halifax last year which they regualy increase (not sure whether to think this is a good sign)

Teqpro

Hi Matt,

I didn't have any adverse credit history, i was living in dreamland thinking i had prefect credit rating. I have been with Natwest and always used their products so was always accepted their soft searches. 5 years ago i upgraded which meant i had a normal account and a platinum account, also with my credit cards.
This affected my credit rating as i wasn't paying them off in full and only used the Platinum accounts.

I closed my normal accounts down; reduced who i owed money too and paid in full my card on the last day of every month. Now i have Credit expert 999 rating for 2 years but even then i thought halifax would not accept me, but they did and so did Natwest.

My advice for you is

1. Pay your card of every month in full. (or borrow the balance from your family for 24 hours)
2. Add a notice of correction to your default so they can see you are a changed man
3. Try and get a much deposit if you can, i had to sell all my gadgets but i know i will buy them back next year.
4. Expect to pay slightly more in interest so try and cut down your bills or put them in your partners / families name temporally.
5. Wait for 1 year for your default to be removed then if you follow the above your rating will be EXCELLENT!

Good Luck