Remortgage with bad credit rating

nthandu

Hello all,

We took a mortgage to buy a house in June 2017. This was on a join account of my self and my wife.

At that time, both of our credit rating was good and there was no issue.

But we recently found out that my wife's credit rating fell down due to a default(mobile contract) and the date of default is September 2013.

As of not my credit rating is good and I am hoping it would stay same but my wife's rating is not good. We are making the payments towards the defaulted account and we are planning to make the whole payment(£370) in next couple of weeks.

We took our mortgage with a 2-year term and we are due to renew it by June 2019.

We are worried that my wife's bad credit rating would cause issues when we go for remortgage. If that's the case is there anything we need to do to reduce the risk of remortgage getting rejected?

Thanks.

[Deleted User]

The ratings are made up and therefore irrelevant.

It's the detail of your files which is important. Have you checked your files, or just the scores? It will be all about the detail.

nthandu

Sorry.. I am not sure if I understood it correctly.

I have checked the rating which is not good.

I have looked into the details which is showing a default with a date September 2013.

[Deleted User]

The ratings are made up. Ignore them.

What do your files show? Is the only negative your wife's default? What do YOUR files show?

nthandu

My credit report doesn't have any defaults or missed payments.

My wife's credit report is clear apart from that one defaulted account.

nthandu

Could you please advise if there is anything we can do about this?

As our mortgage is a joint application, one of the applicant's credit rating(because of default) does impact the application?

As I said earlier, the default was listed in September 2013 and probably we would be going for the remortgage around May 2019 which is all most 5.5 years.

Hammath

If your wife has a default in 2013 but you got your mortgage in 2017 then it would have been seen on your mortgage application so surely if if didn't hinder you getting a mortgage then it shouldn't effect you getting a remortgage when the only difference is that the default is a year older?

nthandu

Yes, but it wasn't listed in the credit report when we took the mortgage in 2017. It started appearing recently.

foxy-stoat

nthandu wrote: »

Yes, but it wasn't listed in the credit report when we took the mortgage in 2017. It started appearing recently.

Just do a retention product with your existing lender nearer the time, if you can do that online they probably wont even run a credit search.

You cannot change the facts of the past - just clear the default ASAP and time will do the rest.

kingstreet

Stay on lender's standard rate (or whatever you will automatically roll onto) then remortgage in September next year when the default will automatically disappear when it is six years from registration.

Otherwise, as suggested, a customer retention product from your existing lender will see you over this period.

nthandu

Thanks for the info @foxy-stoat and @kingstreet.

I am under the impression that, customer retention product is applied separate to mortgage for the house renovation purposes. Please correct me on this?

Does lenders offer a standard rate without going for remortgage? Do I need to do anything for this purpose?

Is going for remortgage necessary? Can we ask/request lender to continue on the existing mortgage rate rather going for remortgage?

Thanks in advance.