Mortgage with defaults - success stories?

Fireflyaway

We have an OK income but were not great with our finances until recently and have 2 defaults each. Total of about £6900. They are recent, only 1 year old but are nearly paid off.
I know they will stay on file for 6 years but I'd like to know if anyone has successfully secured a mortgage with defaults? Many websites say its possible but I have never spoken to someone who has managed it.

ACG

It is possible.
You would usually need a 15% deposit although it may be achievable with 10%. Rates are unlikely to be market leading but nothing too bad (around 5%).

Brokers who tend to do a lot of adverse for them, this sort of application is their bread and butter.

ap1985

I did manage to secure a mortgage with defaults and a CCJ....however, they were all over 5 years old...so will be dropping off very soon...my understanding is that this was taken into consideration.....

I did try obtain a mortgage 2 years ago but this was declined due to my defaults and CCJ...hope this helps!

glentoran99

mortgage approved with 3 settled defaults from 2011/12 at a high street lender just a few months ago.


You will have less of a chance if they aren't paid off when you apply, If your given the chance to explain why the occurred it may help

Thrugelmir

How soon are proposing to apply for a mortgage?

Fireflyaway

Thanks everyone. We are happy renting the place we are in, its in a nice area and at a good price so no major rush. In a year we thought we might apply by which time the defaults will be paid and 2 years old.
I can't deny I feel some pressure from family who think renting is a waste of money!

ap1985

You should not let them pressure you and you yourself shouldn't feel pressured in anyway...i rented for 10 years of my life before managing to get on the property ladder as that was the best option for me at the time due to my adverse credit....You want to buy when it is the right time for you and you know affordability won't be an issue.

chrislee2810

I managed to get a mortgage with 2 low defaults (bellow £500) and a ccj (£400). Both the defaults and ccj drops off in 2017.

Katielou14

Those of you that have been successful - Can I ask how much deposit you had? We are hoping to get a mortgage late next year with a 10% deposit, we have one settled ccj from 2013 and 2 settled defaults both from 2012, not sure if we will manage it with only a 10% but we are hoping!!

Thanks,

ACG

The fact they have been settled will put you in good stead, but it will come down to the scoring. You may find 10.1% makes it a little easier - speak to a broker when the time comes but there are a couple of lenders where it will fit criteria.

getinmyselfoutadebt

We have multiple defaults 4-5 years old. Also a default from this year for over £2000 and we have just been approved subject to valuation. We have a 20% deposit and the rate is 5.3 %.