Concerns around my default impacting moving home

Trebor2013

My partner and I have recently had some unexpected news and may be requiring to move to a bigger home to accommodate our growing family.

My concern is that I have a default against my name and I'm worried what impact this will have on our application. Whilst this was mainly generated from a brief spell of unemployment (and poor decision making from myself), I accept that the circumstances are irrelevant and the lenders would only see the black mark against my name.

Some details:

Outstanding Mortgage - £114856
Value of current Property (Approx) - £230000-240000

Credit Card (Tesco) Default Amount: £5700 (October 2017)
Default Settled: August 2019

We haven't missed a mortgage payment to date since we took out the mortgage in August 2013. Neither myself or partner have any outstanding loans but we both have small balances outstanding on credit cards respectively (Both less than £500), although these are steadily decreasing each month.

My questions would be:

1) How much of an impact will the default have against future mortgage applications if we want to consider moving home?

2) What are the chances of increasing the value of our mortgage, should we find a property that suits, but is more expensive?

3) Does anybody have any recommendations of approaching this?

We have an excellent mortgage broker, who over the past 6 years, has been excellent in finding us a great deal which has meant an overall decrease of approximately £100 per month in payments. My initial thoughts are to approach the broker, but any advise would be much appreciated.

:j

[Deleted User]

1. 3 years from date of default would be better but Oct 2017 isn't too bad. If the rest of the case is strong you should still be on the high street.

2. No idea, you haven't posted any details of your income or financials.

3. Approach your broker with your credit file. Budget for probably paying an early repayment charge on your current mortgage if your existing lender won't do a new mortgage due to the default

ACG

The default will affect your options but I would like to think normal rates will be possible. The default is a 1 off, relatively old and satisfied (Although it is quite large) and you have a large deposit to put down by the looks of it.

Subject to affordability getting a larger mortgage should be possible and all being will be at normal or near normal rates.

getmore4less

Credit Card (Tesco) Default Amount: £5700 (October 2017)
Default Settled: August 2019

That's quite a gap(nearly 2 years) to not be able to settle this and only settled fairly recently.

Neither myself or partner have any outstanding loans but we both have small balances outstanding on credit cards respectively (Both less than £500), although these are steadily decreasing each month.

That suggests that finances are still very tight.

Retired_Mortgage_Adviser

From the limited info in your post (and assuming the absence of other complications in the background), you should be able to access mainstream or mainstream-ish products.

Given that you have an excellent broker, your initial thoughts of approaching the broker are spot on. Just make sure you have a copy of your Experian,Equifax credit report to hand so he/she can see the specifics and advise accordingly.

Good luck!

getmore4less

How are you funding the move, if you have savings you could just pay off the debt, and rebuild them

<£1K is small change when moving in the £240k + range.