Mortgage with a default?

vickyp_2

I had a default registered against me for £550 in 2004, as soon as i realised this was the case I settled it, in Feb 2006. I haven't had any problems since, and have checked my score with experian which is 814 (having been 627). I am looking to buy a house in the next six months with my other half, who has a blemish free payment history. We have a deposit of 20,000 and would be looking for a mortgage of about 100,000. I also have two searches on my credit history which will soon drop off, hopefully increasing my score further.
I wondered if anyone had any experience of/advice about this? Whilst my experian score is now fair, I wondered if some lenders would see the default and instantly turn us away? Or would the fact that it is for a relatively small amount and is now settled account for anything? I know lender have different criteria, but I was just interested if anyone had any thoughts.

sarkin

yes a default will give you problems but yours is a small amount and nearly two years old. I would speak with a mortgage broker as they will be able to save you leg work and get a competetive rate. Some high street lenders will ignore defaults, I wouldnt worry to much but as I said get a broker to do the work, while you go house hunting.

whatever you do, do not use estate agent mortgage brokers as a lot work off pannel and are not whole of market. Also they will pass your details to the estate agent to get every penny out when you put in low offers. hope this helps.

herbiesjp

I would suggest doing the mortgage research first

Find a deal you like and the try to get it agreed - get an agreement in principle.

This way if you have problems, you will have a chance to sort them out. If you offer on a property and then submit an application, and find out there are problems, you would have the added pressure of everyone chasing you (vendors/estate agents) to make sure you are getting a survey done etc