Have I ran out of options?

Wain33

Hi all, just looking for some good, solid advice here.

I am in the forces and I am looking at buying a property (130k) but borrowing (117k) as I can use the forces help to buy scheme. Unfortunately for me I have a unsatisfied default from a which dates back to Jan 2009, and is due to come off in Jan 2016.

I earn 30k as does my partner, who has a clean file. My broker said even despite this default I should still be ok with some lenders (have tried halifax and natwest, both gave aips but rejected full app). Now I am aware that the forces help to but scheme is only accepted by some lenders, but am I really out of options once the high street lenders say no?

I am aware of the morals of not paying the default but it is really a long boring story involving My father of the same name as me. Is there a sub prime lender who would look at this or do I have to bite the bullet and wait for this to fall off my file.

Thank you everyone

Wain33

Default is for 2k also sorry.

Thrugelmir

Wain33 wrote: »

I am aware of the morals of not paying the default but it is really a long boring story involving My father of the same name as me.

Forget morals and the long story. All lenders will see is the unsettled default. That's a reflection of you as a potential borrower. Simple as that.

Wain33

I appreciate that. What I don't understand is I have 2 credit cards paid on time and in full each month, a car on finance and have never missed a payment, phone with no missed payments, had an unsecured loan with no missed payments. So whilst a computer may see it in black and white as a straight no, I feel 5+ years of good credit should even the keel a bit. But hey I'm not a mortgage advisor!

ACG

I think there are lenders who it will fit with not on the high street but normal-ish rates.
I do not get involved in forces help to buy so its not something I have dealt with personally but im sure there are other options.

Wain33

Thanks ACG, my broker thinks I am out of options without moving up to a 15% deposit, mainly due to lack of lenders who accept forces help to buy. I don't know, I thought most lenders these days accepted it!

Thrugelmir

Wain33 wrote: »

So whilst a computer may see it in black and white as a straight no, I feel 5+ years of good credit should even the keel a bit.

Lending takes many forms. Unsecured by it's nature is reflected in the higher rates of interest that are charged than on mortgages. The computer is only doing what it's been instructed to do. That's primarily to vet and weed out applications that don't meet each lenders specific criteria.

Wain33

Of course, I understand that completely. I suppose what I am more baffled at is my broker suggesting high street lenders with my unsatisfied default. I always thought we would not get a high St rate, but maybe a smaller lender who could underwrite the case based on its merits and circumstance. But then these guys do this for a living so you just put your trust in them doing right by you!

kingstreet

Wain33 wrote: »

I have a unsatisfied default from a which dates back to Jan 2009, and is due to come off in Jan 2016

One of those dates is wrong. If it falls off in Jan 2016 it was registered in Jan 2010.

If it was registered in Jan 2009 it should have fallen off already.

Obtain all three versions of your credit files and establish the full picture and to see which version(s) the default appears on.

Wain33

Apologies, it is 2010. It appears on all 3 files. Would I be best to just wait until January when this should disappear from my file?

Thank you

Thrugelmir

Wain33 wrote: »

Apologies, it is 2010. It appears on all 3 files. Would I be best to just wait until January when this should disappear from my file?

Thank you

An option you can choose to take. Though avoid the lender in question when applying for a mortgage.

You also run the risk that a CCJ will be applied for.