Mortgage with 5 year old unpaid defaults. Please help!

Narkynewt

My mortgage advisor has told me and my other half that we will be fine getting a mortgage but now I am worried because of something a friend told me.

We have already had an offer accepted on a new build & intend on getting a mortgage using the government help to buy scheme, so will be applying for a 75% mortgage.

I thought my credit file was clear but (stupidly) hadn't even looked at the closed accounts section. I have 2 unsettled defaults showing on my credit file. Both are over 5 years ago. One for £191 &another for £648.

My credit score is 780/900 and I have low credit utilisation. I have 54 months of positive credit history and have no missed payments in the last 5 years.

Do you think this mortgage will go through ok? Even with the old unsettled defaults. I am going to declare them and explain that this was during a period when I was in between jobs. Since then I have turned my life around! My other half has a very high score (880/900) and no defaults.

My mortgage advisor says it will go through as long as we declare the defaults, because they are 5 years ago.

Do you agree? Am stressed over this now. We have handed in our notice at our home, and have paid a £500 reservation fee on our dream home and have had our offer accepted, it will devastate me and my partner if we don't get it.

glentoran99

Why haven't you paid them? Paid defaults are much better than unpaid


I was told I would have had no chance with my defaults if they were unpaid, (at least not with that lender)


Your mortgage advisor is best placed to advise and if he thinks its ok then you should be

kingstreet

There is no way anyone here will know better than your chosen broker who;-

knows which lender has been applied to
will get paid for successfully completing the case.

Brokers don't usually put applications to lenders unless they think the application will be accepted.

As an example, we haven't had an application declined for several years due to something we were aware of at application stage.

Narkynewt

My mortgage advisor said he has spoken to halifax who said they will proceed as long as we declare the defaults at application stage, because they are 5 years old.

I told my friend and she laughed at me and said there is no way a high street lender will touch me!

I have a number of credit accounts which have been paid up to date for the last 5 years and my credit score is high. It's just these 2 stupid unpaid accounts I had actually forgotten about. My mortgage advisor said whether they are paid or not won't matter as they will remain as defaults anyway.

Have you any experience with someone getting a mortgage in these circumstances?

Also as we are applying through help to buy it is considered we are applying for a 75% mortgage isn't it?

amnblog

..is your friend a mortgage broker Mismarra?

If your broker says Halifax will do it they probably will.

Even if they won't there are other Lenders that will.

Thrugelmir

There's nothing to stop you settling them now. At least this would show good intent on your part. Unsettled defaults say more about you as a potential borrower than any amount of recent credit history.

Narkynewt

amnblog wrote: »

..is your friend a mortgage broker Mismarra?

If your broker says Halifax will do it they probably will.

Even if they won't there are other Lenders that will.

No my friend isn't a mortgage broker. I can see that you are, do you think I am being over the top? I think because it is my dream home I am a bit worried.

Thanks

kingstreet

Many high street lenders will accept some historic adverse.

Many probably get cases with historic adverse which is visible only on one version of your credit file. If your stuff is visible only on (eg) Equifax and you apply to a lender which uses (eg) only Call Credit your application will be accepted because the lender search won't even see it.

We had such a case recently. We did enter the default in the application so the lender couldn't come back to us with an accusation of non-disclosure but there were no questions asked about what we disclosed.

Narkynewt

Thrugelmir wrote: »

There's nothing to stop you settling them now. At least this would show good intent on your part. Unsettled defaults say more about you as a potential borrower than any amount of recent credit history.

We are going full application on Monday it won't show up in time otherwise I would do!

Narkynewt

kingstreet wrote: »

Many high street lenders will accept some historic adverse.

Many probably get cases with historic adverse which is visible only on one version of your credit file. If your stuff is visible only on (eg) Equifax and you apply to a lender which uses (eg) only Call Credit your application will be accepted because the lender search won't even see it.

We had such a case recently. We did enter the default in the application so the lender couldn't come back to us with an accusation of non-disclosure but there were no questions asked about what we disclosed.

It's visible on both experian and equifax but my credit score is good. If I disclose do you think it will be ok? I've paid everything on time for over 5 years, don't owe anything other than the defaults & have low credit utilisation

marliepanda

It's probably a good idea to mention the pending court CCJ claim on this forum when asking for advice.

Your credit score is fairly useless. Your credit history is what's important.

Does your broker know about the court claim?