Old Defaults

coleridgejade

Hi,

Looking for a little advise.

My partner and I have been saving for a mortgage for a little while now and we are hoping to have a 10% deposit around October time.

I have two saticified previous defaults that are expected to clear from my report in September/October. We are waiting for these to go before we apply for a mortgage.

My other half’s score is excellent on Experian while mine is currently fair. I have no debt other than a car on hire purchase which still has a couple of years left.

Couple of questions..
1. Once the defaults have been removed can I expect my credit score to increase?
2. Will the defaults still be visible to mortgage lenders?
3. Do I declare them at the mortgage application stage if asked? Or is it fraudulent to say no since they are no longer showing on my report?

I’m slightly worried we’ve spent so much time saving in help to buy ISA’s and I won’t reap the benefit should we decide it isn’t for the best to purchase a cheaper house in only my partners name.

Any advise anyone could off would be greatly appreciated!

foxy-stoat

Lenders see credit history - no such thing as a score.

Be truthful with your history.

Time heals all defaults.

Good lucks.

ACG

1) Yes, but ignore the score. It is worthless.
2) Only to the companies you defaulted with. So if you have a default with Natwest for example, natwest and RBS will be able to see it from their internal records potentially.
3) If it asks "have you EVER" then yes. If it asks in the last 6 years and they are older than 6 years, then you can say no. Answer the questions truthfully.

If in doubt, try a broker?

coleridgejade

Defaults were with Orange-the phone company and Littlewoods. Back when I was much younger and had no idea the importance of paying bills!

I have been thinking of trying a broker but I’d have no idea where to start. Do they charge lots?

foxy-stoat

coleridgejade wrote: »

I have been thinking of trying a broker but I’d have no idea where to start. Do they charge lots?

A good whole of market broker will save you time and money by going to the right lender first, rather than you walking down the high street and getting "computer says no".

Once you come to the end of your fixed term with no defaults then it would get a little easier.

coleridgejade

Yes, I thought that may be the case. Definitely something for me to look into then!

If we were to decide on buying a smaller house for instance and having the mortgage only in my partners name. Is it possible to have my name on the deed? Even though the mortgage isn’t in my name (whilst I’m paying for half of it)?

ACG

Most brokers will fall somewhere in the realms of £0-999.
If there is a fee, just ensure it is only payable on full offer or completion.

coleridgejade

Thank you for your advise!