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Is 5% Deposit enough with a default

So I have been looking through this forum but cannot really find an answer to my question.

I currently have enough for 5% deposit, my affordability is fine, however i do have a £400 default from 18 months ago, no credit issues before or after. Is getting a mortgage even possible with only 5%. Also if i apply now at 5% and get declined will it affect me applying again in a few months with a larger deposit? If so what kind of deposit should i be looking at?

Comments

  • scholesfan88
    scholesfan88 Posts: 265 Forumite
    Seventh Anniversary 100 Posts
    My broker advised me that with a 5% deposit lenders want to see an impeccable credit rating and no adverse history.

    It may be possible, I suppose a good broker may be able to get you a mortgage but the interest maybe high.
  • GavL
    GavL Posts: 43 Forumite
    I have 5% deposit and a default - however that's dropping off this month.
    This was through a broker.
  • ceb1995
    ceb1995 Posts: 388 Forumite
    Eighth Anniversary 100 Posts Name Dropper I've been Money Tipped!
    Sam2019 wrote: »
    So I have been looking through this forum but cannot really find an answer to my question.

    I currently have enough for 5% deposit, my affordability is fine, however i do have a £400 default from 18 months ago, no credit issues before or after. Is getting a mortgage even possible with only 5%. Also if i apply now at 5% and get declined will it affect me applying again in a few months with a larger deposit? If so what kind of deposit should i be looking at?
    we got a joint mortgage with a 5% deposit with dh having a 5 year old default, that could be considered a bit too recent.
  • muhandis
    muhandis Posts: 994 Forumite
    Eighth Anniversary 500 Posts Name Dropper Combo Breaker
    In your place, I would get in touch with a broker to consider the entirety of my circumstances and give me a realistic idea of if / how much I could potentially borrow.

    If you apply and it gets declined after a hard credit check, waiting a few months should negate the impact of the credit check but not necessarily have an impact on your mortgage chances, that would depend upon the reason for your decline.
    Sam2019 wrote: »
    So I have been looking through this forum but cannot really find an answer to my question.

    I currently have enough for 5% deposit, my affordability is fine, however i do have a £400 default from 18 months ago, no credit issues before or after. Is getting a mortgage even possible with only 5%. Also if i apply now at 5% and get declined will it affect me applying again in a few months with a larger deposit? If so what kind of deposit should i be looking at?
  • redman1989
    redman1989 Posts: 64 Forumite
    i have 5 defaults all 4-5 years old. our options were short on a 10% LTV.
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