Mortgage with Defaults

Blade200

Hi

My partner has 2 defaults over 4 years old. One for £250 on a santandar account which she didn't know about and another £2000 on a car. She missed some payments back in 2012 on this due to redundancy but has been paying back each month since and the balance is at£2000. She hasn't missed any payments on anything since.

We have a 15% deposit ready to go. Affordability isn't the issue its just these defaults.

The chances of being accepted are slim I guess? That is what our broker said

ACG

I think you should have options, but I doubt there will be high street options.

Blade200

Thanks for the reply. Yes our broker said that there is maybe only 2 that we could approach. Accord and I can't remember the name of the other one.

I assume if we were to get accepted our rate will be a good bit higher initially. After the 2 year period it will be possible to get a better rate elsewhere? Will that be dependant on my partner having better credit?

jessnat995

maybe precise would be an option, we got a rate of 4.3, higher than high street but with defauts its expected.

like you say after the fixed year ending just re mortgage

ACG

Precise would probably be overkill.
The rate may be a little higher but not massively.

Thrugelmir

Why haven't the defaults been cleared. If savings are available. Treating the defaults as interest free loans doesn't do any favours from a lenders perspective.

Blade200

The Santander one she wasn't even aware of it. The car is being paid of monthly. I do agree though it should have been paid off faster.

The thing is this house has appeared that we really want and our parents said they would help with our deposit. We didn't think we would be in position to go for it.