Historical default, broker wants to place me with same lender?

student87

Hi All,

Broker wants to place me with Barclays. He is aware I had defaulted on a student account / overdraft with them many years ago. The default does not show on my credit file.

He believes the adverse history should not be an issue? surely he is wrong?

I am looking to obtain a 40% Help to Buy loan now and with my deposit I should be requesting about 45-50% LTV. Deposit should be around 10/15%.

Thank you

ACG

How many years?
Was it settled?
Do you still bank with them?

student87

ACG wrote: »

How many years?
Was it settled?
Do you still bank with them?

Default received in 2011
Came off my file last year, .
Barclays entered in incorrectly which I queried and they then removed it immediately upon request. (Should have been 2 years earlier).

No, debt was sold to a DCA.

Bank with HSBC but other half had a default with Halifax and Natwest so cannot approach them.

student87

Also, Are TSB and Halifax in anyway associated? I think TSB owned Halifax previously so would be aware of the previous default?

Thank you for your time.

ACG

To be honest, I think with the other defaults your options are a little limited. I would not rule them out though.

student87

Thanks for your reply.

ACG wrote: »

To be honest, I think with the other defaults your options are a little limited. I would not rule them out though.

David_White

I would suggest trusting your broker first and foremost as they've no doubt seen your credit reports and have assessed your options.

I understand where you're coming from because it seems strange doesn't it however I have placed many cases successfully where a client has defaulted with the chosen mortgage lender so it's not out of the question given the right circumstances.

Westminster

My previous mortgage was successfuly placed with Barclays on recommendation of our broker when I also had historical defaults with Barclays Bank and Barclaycard.

ellison007

Hi David, in your experience if a potential borrower has a historical default (more than 6 years ago with a particular lender) is the bank usually willing to give the customer a 'second chance' as it were? I have an AIP with Natwest & an AIP with Halifax at the moment (just waiting for a new build plot to be released prior to full mortgage app). Both AIP's were done in person via a mortgage broker in branch. I did default on a NatWest CC in 2010 (no record now on the credit report - default fully satisfied and paid off) & also a Halifax CC (2009 - default fully satisfied and paid off) also now no record on the credit report.


Am I wasting my time approaching them at full app or shall I approach a broker?


Many thanks.

David_White

This is very much lender specific but I would definitely avoid Natwest if you've previously defaulted with them. It won't be on your credit report but they will have a record on their own "Back Office" system.

ACG

Did you do the Natwest AIP yourself? If so its worthless.
Personally I think it would be a good idea to use a broker in your circumstances. It is not to say it can not be done yourself but a good broker will increase your chances of success.

(I say that as a broker who does not do Help to Buy).