Credit score drop

HaydenB

My mortgage broker has already spoken to lenders and they have confirmed that if I clear off my debts in full, which I will when I sell my house, they will be prepared to offer me a mortgage £150-170k depending on my affordability. I am meeting her next week to go forward and get an AIP. The main point of this thread was to see if the drop in my credit score would affect my chances of getting an AIP.

Movingon5464

Barclay's cannot change the date of the default so lenders will see that you defaulted 5 years ago. It is possible that they have reported the last payment as being in arrears but given that the account is defaulted anyway I don't think that will make much difference. It might possibly have made the difference to your Experian score but as sourcrates said that is meaningless as lenders will score you themselves based on the information in your reports. While I think any drop in your score is worth looking into you need to focus on what new information has caused the drop rather than the score itself. Unfortunately you will struggle to get a decent rate mortgage with defaults on your accounts. Another mse poster suggested looking into Handelsbanken or you could find a mortgage broker who specialises in bad credit mortgages. My personal opinion is that you would be better waiting for the defaults to drop off first.

Movingon5464

Just seen your last post. It seems your mortgage broker has found a lender willing to consider you even with defaults. I think some do if defaults are not recent as other factors such as income and deposit are important considerations too. It is likely you will pay a higher interest rate but if you have personal reasons for wanting to move now rather than waiting for the defaults to fall off then that it may be worth it for you. Maybe try and get in writing what Barclay's are saying about recent late payments and from Payplan that payments were made on time just in case it crops up. I doubt it would make much difference once explained if they ask about it.

sourcrates

HaydenB wrote: »

My mortgage broker has already spoken to lenders and they have confirmed that if I clear off my debts in full, which I will when I sell my house, they will be prepared to offer me a mortgage £150-170k depending on my affordability. I am meeting her next week to go forward and get an AIP. The main point of this thread was to see if the drop in my credit score would affect my chances of getting an AIP.

Oh, well I wish you luck with it, I would suspect the interest rate may be a tad higher than normal though.


Don't forget that although they may make an agreement in principle, they could change there minds if they don't like your credit report, or you fail affordability checks.


Hopefully all will go well for you.

Movingon5464

Do they do a credit check before giving a agreement in principle ?

Movingon5464

Just googled and found an answer to my own question. For anyone else who is interested :

https://www.checkmyfile.com/jargon/agreement-in-principle.htm

HaydenB

Thanks for the comments. My mortgage broker found two different groups of lenders with 2/3 lenders in each.

Group 1 - would give me a mortgage on good rates should my debts be settled in full
Group 2 - would give me a mortgage on high rates should my debts be F&F settled (partially).

I dont know if in my favour is the fact that I have not had any issues during my DMP and I have looked to repay my debts rather than take another route out (IVA, bankruptcy, etc). Will know more next week after my 2nd meeting with the broker.

Movingon5464

Good luck !