Mortgage Rates.

Rob_Mogs

I have a quick question......

We've established that due to a default from over 5 years ago on my credit file, we cannot get a mainstream lender to give us a mortgage.

Obviously if we do get offered a mortgage it will either be asking for a much higher deposit, or on a higher rate or both.

I've seen mortage examples with rates up to about 4% fixed for two years, (our current application that was declined was for an initial period of two years at 2.14% and then going up to a variable rate, which is currently 3.9%).

So what would a mortgage through a specialist lender revert to after the two years? and how difficult would it be to remortgage after this period (Credit file will be clean in 10months to the day almost)

lee111s

The SVR is totally dependant on the lender and can be changed at any time.

ACG

A 5 year old default does not necessarily mean you need a specialist lender.

How much was the default for?
What was it for? (loan, credit card etc. If a loan, was it a secured loan?)
How much will your deposit be as a percentage of the purchase price?

Rob_Mogs

ACG wrote: »

A 5 year old default does not necessarily mean you need a specialist lender.

How much was the default for?
What was it for? (loan, credit card etc. If a loan, was it a secured loan?)
How much will your deposit be as a percentage of the purchase price?

The initial default was 25th May 2010 and was for a car on finance with Black Horse, which was then changed to a personal loan (I knew none of this - Another story but won't make a difference to the outcome) as the car was sold to a dealer on reccomendation by BH representative.

Once it was discovered on my file we spoke to BH and launched a complaints proceure due to the above 'other story' which eneded up going to the financial ombudsman, who although agreed there had been failings by BH said I was still liable for the debt, at which point it was paid off and settled. - it was merely a case of not knowing about it.
Default figure was £5305, but as above was paid as soon as was needed, in April this year.

House price agreed is £132000,
Deposit amount we want to use is £22000 (16.67%), although we have the option of going up to £26500 (20.08%) -

ACG

There could be other lenders who would consider this at high street rates.
I would not say its a given though.

In terms of the SVR query, in 2 years your default will have dropped off your credit reports. So you could potentially look to go to "normal" lenders at that point.