Mortgage with defaults

JaneEyre

This thread is reassuring and is giving me hope that there is light at the end of the tunnel. I've recently been declined for a mortgage due to an unsettled default from 2017. I've since settled the default and paid off some credit card debt, but I'm worried about trying again and having another hard search on my credit file.  I'm also restricted with which lenders I can use, as I had hoped to use the Scottish First Home Fund.  It is good to know that there is a chance though, no matter how small! 

Bex_27

I am currently going through this, I am a FTB and using HTB. I have some silly missed payments from mail-order companies with the last 12 months for a silly £20, now I am thinking this is going to jeopardise everything. I have a lump sum coming which will pay off half a loan and my overdraft and we have a joint income of over £60k plus £13,500 gifted deposit. I am worried that some silly little payments will ruin everything. We have found our dream house, put a reservation down and my MA has told us that there is a lender out there for everyone. I have said if we need to do a higher rate with an adverse lender, so be it.

Preface12

@Bex good luck with everything. I feel your pain. There is definitely a lender out there for everyone however big or small the interest is. We are all keeping our fingers crossed. Let us know how you get on

haras_n0sirrah

I have had three clients this week who 6 weeks ago we discovered adverse (1 had a ccj and two had default) which they have cleared, waited for credit reports to update and we have now been able to apply

If depends on how big the defaults are (all were under £300) and how long ago they were registered 

khtaylor

Definitely speak to a broker! When we were doing online aip's online ourself they kept coming back no, no and NO. 
We have now applied for a mortgage through broker and now waiting (very long wait) for decision 

CharlieChops

I posted this yesterday, you have now given me some hope with a High Street lender, I thought we be lucky to get a mortgage!! 

We are hoping to move house, due a family issue a couple years ago I had to reduce my hours at work, then take temporary unpaid leave and which left us in a bit of a financial mess! We have 3 defaults just over 2 years old and settled, the amounts are £2400, £861 and £264, they have been settled for over a year. We have a 50% deposit. We have no outstanding debts. 

loufay26

This post have given me hope. I am applying for a mortgage through Natwest, the application only went in two days ago and because of Covid my Credit report is not up-to-date it still shows debts that I repaid two months ago! I have sent proof of nil balances to my broker but this is still really concerning me, especially with all the horror stories I keep reading! I did have a late payment 8 months ago but I have a 25% deposit, 74% LTV so I am keeping everything crossed. 

Squeaky9

Similar story here. My boyfriend has one default from 2017 for £3600 (now settled) and a couple of missed CC payments (most recent was 2018) and we were originally told by a broker that ruled us out for high street lenders and we also needed 20% deposit (we only had 15%). So we had to borrow more money from family to get up to 20% and resign ourselves to an adverse rate. One email to haras_n0sirrah on here and she found us two high street lenders who gave us an AIP the next day. We’ve now just had our mortgage offer through from one of those high street lenders (TSB) with a 15% deposit and a much better rate thanks to her. So there is always hope, you just need to find the right broker to fit you to the right lender. 

sam791

This makes me hopeful . We have 5 five year old defaults ( all small and settled ) We are only borrowing half of what we are ‘afforded’ to . I’m still worried and we have been placed with an adverse lender. 
We contacted about 8 brokers and only 1 came back to us. 

haras_n0sirrah

Thank you for the recommendation @Squeaky9