Mortgage with defaults

San_Jose

Hi all,

I just wanted to share my experience with you all to maybe offer a glimmer of hope in stressful times. After deciding to take the plunge and purchase a new build property using HTB as FTB, me and my partner applied for a mortgage via the developments onsite broker. I was very skeptical as to whether we would get anything as I had 3 defaults from April/May and June of 2018 (for quite high amounts of unsecured debt 10k, 5k and 2k) which have now all been settled around the same time. My partners credit rating is excellent mine is rated as poor. We where also asking for pretty much the maximum of what we were able to borrow based on our earnings.

The mortgage advisor at the time said we would struggle and would need to look at sub prime lenders and due to the current Covid situation there wasn't many around offering 75% LTV which is what we needed. It was at this point I decided to do some research. I probably contacted 15/20 specialist adverse credit mortgage advisors and was told a similar thing that I would not likely be accepted on the high street and Id need to use someone like Precise. I did however speak to a few who said I really didn't have anything to lose in applying on the high street and that Natwest and Halifax being the most likely to accept if any with my past. With this information I made an enquiry with Natwest who did gave me a DIP over the phone (soft search). I then contacted my broker and told him this. Low and behold he also had the same result when going through the intermediary site (which performed a hard check). Fast forward a few weeks and we were offered a 5 year fixed mortgage at 1.86% which has now all gone through and we are moving in to our new house next week.

Anyway just wanted to pass my story on as I know this site is a great source of information and it can maybe serve as to offer some hope for those who like me thought they could not obtain a mortgage. I know when I was looking on the site there wasn't many positive stories of people with recentish defaults so wanted to share.

Dinpraad

Congrats. That's reassuring 

ukman2012

congrats, that nice to hear

jazzyja

Thankyou so much for this. Im currently saving hoping and praying for a mortgage next year. Ive got a clean history for the last 3 years but before that not so good so. I come here and do nothing but worry it will never happen! But you've given some hope. Congratulations 

watch3r

I have a similar story . 

Went looking for a house used recommend mortgage advisor, although I always like to have my options open so I contacted Barclays and Natwest. 

My issue was that we live in Surrey and the property is in Norfolk . ( we both have full time remote jobs ).
so my mortgage advisor pulled off 10 minutes before our scheduled reservation meeting and sales director from the developer said we can’t proceed without a mortgage offer . Called by Barclays advisor he send her an email that they will offer us a mortgage once we have ATP from help to buy within 5 min of
my call.

Reserved
got ATP ( you need to get one from help to buy agent ) 
Made full application for a mortgage .
passed the hard checks.
Now waiting for underwriting and valuation .
very stressful time tbh 

NatalieAGC

If it helps I just got virgin money mortgage offer thru. Instantly accepted online no refer. And offer from application took around 10 days! 

SamualGangee

To echo what's been said, I just got my Mortgage offer from Natwest HTB. I had 2 defaults, one from February 2018 (£420) and another from 4 years ago. So happy I had assumed I would have to with a more adverse lender with high interest rates!

karynS

This is really encouraging! Just completed my online enquiry with natwest - I am current home owner but want to utilise the HTB before end of Dec 2019.  I am using mortgage broker but he's total doom and gloom.. says there's very few lenders if any willing to lend on 75% LTV. I have a recent default that was out of my control and has been settled, and no other outstanding debts, no over drafts/loans or ccards etc.  But because I have that damn default I was sure I couldn't go near mainstream lenders - knowing my luck though, the tables have probably turned in the last month :-( 

NatalieAGC

If it helps to add my two pence worth..

default £800 2015.  Settled on April this year. 

Mortgage 85ltv with virgin money 2% over 5 years and mortgage application to completion took just 28 days!!! No flies on them 👍🏼 I completed Friday  just gone (17th July 10am)

Preface12

This thread has just made my day. We are planning to buy our first home but only found out recently through a soft search to get a DIP that we wouldn't be getting a high street bank and will be most likely get a 4% interest rate mortgage because of two defaults of £11 and £18 which were settled. Depressed is an understatement. I was crushed but this oh my goodness has given me hope. We both have very good jobs with very good pay. I am disabled and don't have a lot of outgoings. This has given me so much hope I will sleep better tonight.

haras_n0sirrah

There is no way you are looking at a 4% rate with an £11 and £18 default - speak to a broker. This would be high street rates but not all lenders. I have just placed someone on help to buy from here on high street rates with defaults of £500 that were only settled just before application.
If you don't have one then there are many brokers who post on these boards. Those of us who post here are not allowed to approach forumites but most of us are happy to respond to pm's