Getting a mortgage with previous personal loan default

martinmcfly

Thanks everyone, I really appreciate your input and advice, no matter how depressing it is.

Dave_Ham

Just for reference, I did not say you could not achieve competitive finance as I suspect you can.

My point was you need to appreciate this is an issue and understand why you are getting the feedback you have.

Speak to the broker who said they could do it and understand the potential terms they have available.

Getting multiple opinions/advice can be confusing for broker/client, suggest you deal with the broker you trust and let them identify the best terms available.

martinmcfly

Fair enough. Honestly I do appreciate, only too well, that this is an issue, and why. I'm looking to avoid paying off the loan mainly because we are looking to purchase at auction at the end of the month. If that doesn't pan out, then dealing with this will be a priority. It's difficult weighing up all the potential risks involved and trying to second guess the future.

Dave_Ham

And also ensure you have noted what I said about remortgaging within 6 months of purchase.

Edi81

We are both employed full time with excellent credit ratings

You then have a default that you are repaying back at £1 a month.

Why should a bank take a risk on you? You haven't proven that you are now financially responsible. Settle the default and look again in the future.