Mortgage in principle

Donna_Leigh

My husband and I are apply for a shared ownership property and have just been refused a mortgage in principle with Kent reliance due to defaults on my credit report. We have paid these but they are not yet showing as settled.
Once they are updated can we reapply to the same lender (Kent reliance) again for mortgage in principle??

We are so worried 😩

Donna_Leigh

Help! Anyone?

marliepanda

It's been 14 minutes. Give people chance to answer

Defaults will show for 6 years, settled or not.

Applying for a mortgage with defaults never looks good. You've basically missed payments on a debt and are now asking someone to give you more debt.

Donna_Leigh

I am very aware of that however, I am waiting for the defaults to show as settled now that they are paid.

My question is..... can I reapply to the same lender even after they have refused the mortgage in principle??

teffers

Your defaults will show as 'satisfied' rather than settled. This is slightly better than unpaid, but still a big negative to most lenders.

It's totally reliant on the lender's lending criteria as to whether you can re-apply. It's unlikely however especially so soon.

You need to speak to an independent mortgage adviser who can see a lender's requirements BEFORE you apply.

teffers

Here you go...

http://www.kentrelianceforintermediaries.co.uk

Applicants with adverse credit will not normally be considered.

The restrictions may not apply in the following circumstances (subject to full underwrite):
Where the CCJ/default was registered more than three years ago and satisfied prior to mortgage application.

Where the CCJ/default was satisfied more than 12 months prior to application regardless of date of registration.

Where the CCJs/defaults in aggregate amount to less than £300 regardless of the date of registration. It must be satisfied prior to mortgage application.

An explanation of the debt must be submitted with the application together with the evidence of satisfaction (if applicable).
Applicants who have had arrears in the last 12 months are not accepted. Arrears over three years ago may be accepted with an explanation (and confirmation that they are up to date).
IVA/Bankrupts who have been discharged over three years ago and who have no residual debt may be accepted with rationale at underwriter’s discretion. Additional documents may be requested

marliepanda

Donna_Leigh wrote: »

I am very aware of that however, I am waiting for the defaults to show as settled now that they are paid.

My question is..... can I reapply to the same lender even after they have refused the mortgage in principle??

Unlikely.

Also, a AIP doesn't mean you get a mortgage. If there balling at a AIP then a full application seems unlikely to pass

Mortgages are based on credit history and yours is adverse. You need a hefty deposit or to look at adverse credit mortgages.

robatwork

You need a broker who specialises in adverse credit. Plenty about, some of whom are on here.

Very unlikely now you have been refused that Kent will change their mind even if you can demonstrate a small error in your credit history.