Mortgage With 2 Settled Defaults.

Niklas33

Hi good morning.

My partner and i are looking to buy our first home.

I have a clean credit history with no debts at all, he unfortunately had 2 defaults back in 2016 both of which didn't come to light until we first applied and both have since been paid off.

One was for £225 and the other was £900.

We have a 5 percent deposit and we earn £40k between us.

Would any lender be able to help us?

Thanks.

ACG

When were they paid off?

LawAbiding

Highly recommend seeing a local broker.

I have 2 defaults, both satisfied and both over 3 years old and I have secured a Mortgage offer this week via my broker with Aldermore.

A broker will be able to best place you with a lender.

Niklas33

We were notified of them during a credit check via Experian, and they were paid off this month.

Up until then we had no idea they had defaulted and the company had not acted upon collecting payments for them, we set up a payment plan for him and he has been paying it off monthly, this month he paid the remainder off in full.

ACG

5% deposit you might struggle. It wont fit with Aldermore.

You are going to be very limited I think. The smaller building societies will ask why if you had savings you did not clear it rather than setting up a payment plan. The larger lenders will credit score.

It is worth speaking an experienced broker as there are things that can be done to improve your chances but at 95% LTV I think you are 50/50 at best and it will probably come down to the rest of the case.

Niklas33

Thanks for the responses i have been in contact with a few brokers, who seem to be positive about our situation so we shall see where it goes.

Thanks.