Help! Declined mortgage after AIP after discovering poor credit

Jlp123

Hi
Can anyone help. Me and my partner have applied for a mortgage. We have over £50,000 deposit and 85% LTV and a combined income of £70,000. The problem is I have discovered I have a couple of defaults on my credit file from over a year ago 😔 from a previous relationship that didn’t end well.
Our mortgage advisor told us this today. We had a mortgage in principle with accord but now they have refused the application. My partners credit is squeaky clean and now mine not so much.
Can anyone help. Will we get a mortgage offer with another company?

TomMawdsley

Hi There!

Lenders look at a few different things when assessing defaults, such as:

How much the defaults were for
When they were registered
Are they satisfied
What were the defaults for

There may be a lender out there that would consider the mortgage, even if accord wouldn't. I'd suggest going back to your adviser, or seek another adviser if your current one can't help.

Hope this helps!

BoGoF

How much?

Have they been paid now?

Jlp123

Hi thank you for your help.

They are settled and satisfied and all paid off.

Jlp123

I can’t remember the exact amount

ACG

There may be high street options, but it may end up costing you more - worse case scenario would be around 5%, chances are it will be less than that but the devil with anything like this is in the detail.

What has your broker said? I assume they have requested a copy of your credit report?

Jlp123

Our broker has just said to leave it with him and he will look in to it, he said it shouldn’t be a problem as the defaults are easily explained but I worry he is fobbing us off.
Yes our broker has the copy of my credit report with all the detail in.
It’s so frustrating as we are both on good
Money and a really good deposit. We have found our dream house and had the offer accepted, Sold my partners house and we are all ready.

amnblog

Defaults are not explained.

They are acceptable to Lenders or are not, explain actions very rarely have any bearing and then only when the Lender accepts the defaults in principle.

Did the Broker not check your file before they ran a decision in principle?

Were you not aware you had multiple defaults in the past 36 months?

This needs to be sorted properly by someone who knows what they are doing.

Jlp123

Hi
I wasn’t aware no. I left a very bad relationship in a bit of a mess and it’s only when going through all of this that I found out.
The defaults are from a late payment on a water bill and a credit card.
Nothing showed up on a MIP it’s only after going through the full application ��

csgohan4

Good brokers demand credit files from all 3 CRA's. Your broker it seems did not. Bad move and wasted a credit search

ACG

I agree with the others, we typically always ask for credit reports upfront now. This is a prime example of why, people historically have told us no bad credit, we then waste our time doing research based on incorrect information and then doing a DIP/AIP that was never going to pass.

See what your broker comes back with. We do not have enough information to work off but your broker has everything now.