Mortgage Application with Defaults

A709TH

I wonder if anyone could offer any advise to me.  I am looking to obtain a mortgage soon and have now agreed the price with the seller, the property value is £155,000 and I have £35,000 deposit. My credit isn’t the best and I have 6 defaults on my report but all of which are now over 3 years old.  Since this my finances have all been clean and good. I have no loans or credit at present and my salary wouldn’t be an issue with the application. 

I have been approved in principle with Barclays and another lender through a broker at a higher rate. The question is, do Barclays accept defaults with mortgages and what are the chances of my application been rejected after having been approved in principle (AIP)? I’m conscious that although their rates might be better, a rejected application would do harm to my credit having had a hard search and therefore it may hinder getting another application approved. 

Any advise would be appreciated

NatalieAGC

Check ‘Barclays mortgage lending criteria’ on google  to see what they accept in terms of default, the page will come up or intermediary page.
 I’d be surprised if Barclays accept that many tbh. 

A709TH

Thanks for your reply and yes that’s initially what I thought. Below is the extract from Barclays lending criteria as I’d previously looked at this :- 

• More than 3 satisfied defaults* and the latest is registered within the past 3 years
• Satisfied defaults* totalling more than £200 and the latest is registered within the past 3 years
• Any outstanding default, irrespective of amount

A709TH

Also the only reason I looked at Barclays in the first place as the Experian eligibility said my chances were excellent which kind of threw me as I wouldn’t of normally considered a high street lender with my amount of defaults. 

[Deleted User]

Experian is nonsense - when I was at my old work it said I'd be accepted for them and for Santander. Santander won't take anyone that's ever been bankrupt and my old employer (not Santander) definitely wouldn't have taken me either (or I'd have just gone there!!).

I'd speak to Barclays - are the defaults at your current address? If they're elsewhere the AIP may not have picked them up. Before you go to full application, I'd be wanting Barclays to confirm they're happy with the 6 x defaults on the credit file as that appears way outside of policy (unless some are phones etc. and they're disregarding them, but even the policy doesn't say that). 

Was the Barclays AIP a straight accept or did it refer to an Underwriter? If it referred then there's a possibility the Underwriter has seen all the defaults and isn't concerned, that should be in the file though if you phone them. That does seem a high number to get through on the high street though.

A rejected application won't necessarily harm you (it's just 1 search, which will have minimal effect) - but it will delay you, so you're better off getting the correct lender to start with. If Barclays will lend to you then brilliant, but if there's been a system glitch and they actually are going to decline you once they do the full check you don't want to waste your time if you or the vendor are a hurry to get things wrapped up.

A709TH

Thanks for your reply. 

Spoke to Barclays today who confirmed providing the defaults are satisfied and they are over 3 years old (they all are), it shouldn’t pose a problem and it’s unusual an application is rejected after a AIP.  All defaults were registered against my current address. 

The Barclays AIP was a straight accept. 

I have a phone appointment with them tomorrow so hopefully I can get more information. 

The policy on the Barclays website does state they don’t accept defaults up to 3 years and doesn’t mention anything about defaults older than 3 years. 

Mishelski

A709TH said:

Thanks for your reply. 

Spoke to Barclays today who confirmed providing the defaults are satisfied and they are over 3 years old (they all are), it shouldn’t pose a problem and it’s unusual an application is rejected after a AIP.  All defaults were registered against my current address. 

The Barclays AIP was a straight accept. 

I have a phone appointment with them tomorrow so hopefully I can get more information. 

The policy on the Barclays website does state they don’t accept defaults up to 3 years and doesn’t mention anything about defaults older than 3 years. 

Hi I am really curious how your application went. 
I'm in a similar situation with a ccj registered 3 years ago. I got a DIP but I'm worried the ccj will cause me some issues and it might get rejected.

Tinkerbell1981

Mishelski said:

A709TH said:

Thanks for your reply. 

Spoke to Barclays today who confirmed providing the defaults are satisfied and they are over 3 years old (they all are), it shouldn’t pose a problem and it’s unusual an application is rejected after a AIP.  All defaults were registered against my current address. 

The Barclays AIP was a straight accept. 

I have a phone appointment with them tomorrow so hopefully I can get more information. 

The policy on the Barclays website does state they don’t accept defaults up to 3 years and doesn’t mention anything about defaults older than 3 years. 

Hi I am really curious how your application went. 
I'm in a similar situation with a ccj registered 3 years ago. I got a DIP but I'm worried the ccj will cause me some issues and it might get rejected.

me to hoe did you get on with Barclays?

keepthefaith2021

A709TH said:

Thanks for your reply. 

Spoke to Barclays today who confirmed providing the defaults are satisfied and they are over 3 years old (they all are), it shouldn’t pose a problem and it’s unusual an application is rejected after a AIP.  All defaults were registered against my current address. 

The Barclays AIP was a straight accept. 

I have a phone appointment with them tomorrow so hopefully I can get more information. 

The policy on the Barclays website does state they don’t accept defaults up to 3 years and doesn’t mention anything about defaults older than 3 years. 

How did it go for you?

Mishelski

Tinkerbell1981 said:

Mishelski said:

A709TH said:

Thanks for your reply. 

Spoke to Barclays today who confirmed providing the defaults are satisfied and they are over 3 years old (they all are), it shouldn’t pose a problem and it’s unusual an application is rejected after a AIP.  All defaults were registered against my current address. 

The Barclays AIP was a straight accept. 

I have a phone appointment with them tomorrow so hopefully I can get more information. 

The policy on the Barclays website does state they don’t accept defaults up to 3 years and doesn’t mention anything about defaults older than 3 years. 

Hi I am really curious how your application went. 
I'm in a similar situation with a ccj registered 3 years ago. I got a DIP but I'm worried the ccj will cause me some issues and it might get rejected.

me to hoe did you get on with Barclays?

I was declind by Barclays. I had to let the house go sadly as I had tried all my options on that house. I found a new house which is nicer and I've been approved with nationwide pending valuation.

pearsforlife

We had a CCJ and several defaults between us, all satisfied as well as about 10k unsecured debt - it went to refer, but then was accepted by the underwriter - we do have good very stable jobs, no furlough etc etc and was borrowing about 100K less than we could of.