Mortgage declined - default on credit report

Elkcip

Hi guys, before I start I'd like to apologise for the long post. I'm new to this forum and have been reading through quite a few threads to find information but nothing quite fits with my situation so I thought I'd seek out a little advice.

I currently live with my wife who has the mortgage for the property we live in currently, with around £40,000 in equity. We want to move in to a bigger house and have decided on a budget of around 185,000. We spoke to a broker who initially advised is to sign up to Experian and stark keeping an eye on our credit scores and do as much as possible to improve it. My wife's credit history is squeaky clean but mine isn't, I have a credit card which defaulted in 2011 and was subsequently settled and paid off in 2015.

We met with the broker and he took all of our info, to be fair he didn't know about the defaulted credit card and I was a bit ignorant to the default and what it meant, although he did know I'd had issues in the past. He went off and applied for a mortgage which was declined because of the default. It was only after this that he came back to ask for a copy of our credit reports, which after looking through these forums I realise he should have done earlier. He's also extremely difficult to get hold of, all of the information we've managed to get from him since our first meeting we've had to chase him for(he doesn't seem capable of picking up the phone or sending an email, even after chasing him). We're now considering what to do next.

I suppose I have three questions, any additional advice would be much appreciated.

1. I know that it takes 6 years for a default to disappear from my credit report, but is that 6 years from the default date in 2011 or from the date it was settled in 2015?

2. Are there mortgage providers out there that will accept an application with a default of £733?

3. Is it worth finding another broker and where would I find one useful in these circumstances?

Thanks in advance for any help!!

ACG

1) 6 years from the date of registration.
2) Yes
3) Depends, does your broker think they will be able to overcome it? Or are you unhappy to the point of wanting to find someone new?

The default has been satisfied, it is quite old and you have a decent deposit. Im sure there will be a place for this and at normal rates.

Elkcip

ACG wrote: »

3) Depends, does your broker think they will be able to overcome it? Or are you unhappy to the point of wanting to find someone new?

The broker has said that he can't find a provider who will accept a default of over £500, plus he's been a pain to get information out of and to get hold of. Which is why I'm thinking about another broker

ACG

Try a new broker then. There should be a couple of lenders who will look at it.

Elkcip

I'm not sure about the rules of the forum but do you have any recommendations ?

ACG

Were not allowed to recommend anyone, sorry.

Elkcip

No worries, thanks anyway. I feel more confident about this situation now. Any other advice that anyone could offer would be greatly appreciated!

Thrugelmir

Elkcip wrote: »

but is that 6 years from the default date in 2011 or from the date it was settled in 2015?

Lenders will be asking the question why it took 4 years to settle a £733 debt. Not just a question of a date exercise. Lenders are also assessing you as a potentially customer/borrower. So there'll be other unpublished internal commercially sensitive criteria as well.

Elkcip

I know it seems odd, and the only way it can be explained really is that I was young, stupid and never really considered the consequences. But after 6 years have passed since the default date, they won't see it right? I'm prepared to wait another year if that's what it takes..

ShivasPlace

ACG wrote: »

Try a new broker then. There should be a couple of lenders who will look at it.

…and one that will look at your credit report(s) before doing ANYTHING, let alone applying for a mortgage and leaving a 'hard' search on your file.

glentoran99

Elkcip wrote: »

The broker has said that he can't find a provider who will accept a default of over £500, plus he's been a pain to get information out of and to get hold of. Which is why I'm thinking about another broker

I think your broker needs a new line of work, A 5 year old settled default shouldn't really cause too many problems getting a mortgage