Old Defaults

Sauscrat

Hi everyone I would appreciate thoughts on whether we stand any chance of a mortgage. I know the devils in the details and we will be eventually seeking the help of a broker

However I am stressing more than my OH and would appreciate any opinions .

OH has 3 old defaults that are due to drop off in 2019, all paid with the last one dropping off in AUG/SEPT. we are hoping to buy a house that will be ready in Aug 2019 so will need a mortgage before the last one drops off.
No blemishes at all on either credit report at all after these old defaults.
We have no other debt and no dependants, we have credit cards that we use and pay off in full every month.

have a reasonable deposit saved of 20% LTV .

OH has a secure job and additionally already in receipt of a DB pension that tops up income
we only want to borrow over 10 yrs and have passed the initial affordability test with builder, our repayments would be less than the pension without touching income from wages.

Will we have a chance of a mortgage with these old defaults?, my OH says we will and I shouldn't worry too much but I am a born worrier and would appreciate outsiders views as its a long time to be fretting.

Appreciate any thoughts thank you in advance:beer:

ACG

On the face of it, seems possible at normal rates but as you say the devil is in the detail.

butterflybook

From what you have said this should be able to be placed on the high street at standard rates assuming there is nothing else lurking or any other unusual circumstances

Try not to worry a good broker will sort you out

Sauscrat

Thank you both for taking the time to reply.

You have put my mind at rest and I will hopefully not worry too much going forward.

Really appreciated

typoon21

Hey,

So I had a default in 2013 but was settled two months later - this shows on my file but I was told my offer is now being processed.

I believe that if you have kept up with ALL payments for the past 3 year then you will be fine.

I also read that defaults after 3 years are on the file but are not taken into consideration - dont quote me on that!

Sauscrat

Thanks for sharing your situation it’s helpful to hear how someone with similar past problems has got on ...it seems that we will be ok .
Good luck with your buying too

pinknsparkly

Hi Sauscrat,

My husband and I have successfully applied for a mortgage with Halifax with two late payments on my credit score (a screw up by British Gas, I could rant for days on that front!) and a patchy recent employment history (due to me doing a PhD). Our mortgage broker suggested Halifax as being one of the most lenient highstreet lenders in terms of credit and employment history but also one that doesn't perform a hard search when you apply for an agreement in principle (they do a soft search only at that point, but will do a hard search if you proceed with the application).

When you are ready to buy, I would suggest starting with applying for an agreement in principle with them and see what the outcome is. Other people would be better placed to advise, but since they only do a soft search, perhaps you could apply for an agreement in principle now and see what the outcome is? If you pass at this point, then you should have even fewer problems in a years time!

Good luck, we're in the process of buying our first house and are very much learning as we go :rotfl:

Edited to add: in fact, the only reason we're currently in the process of buying the house (the mortgage broker said we should wait until Feb when I'd have been employed for a year) is that I decided to apply for an agreement in principle "just to see"! As you can tell, it went rather better than I thought it might!!

Sauscrat

Thanks pinknspark for your very helpful reply.

Thats a great idea re Halifax, as the time gets closer we will enquire.

Exciting that you are closer on your journey than you thought, Very best of luck with your first home!!