Any chance of mortgage with £9k defaults

brightbluebecky

I made some awful decisions a couple of years ago whilst going through a rough patch which went breakup, job loss and home loss in that order. But anyway due to this series of unfortunate events and even worse decisions I now have some pretty serious defaults on my credit file. 

I  have 2 defaults from a current account and an unsecured loan from the same provider totalling £9k both dated March 2018. These were both satisfied in July 2019. My credit rating is rated as poor... Is it even worth me considering approaching a broker or do I have no hope in hell of getting a mortgage until they drop off? 

I would be hoping for LTV of 80%. £20k deposit on 100k flat. 

I know the simple answer is probably approach a broker but I'm just so embarrassed of the size of the defaults. 

Any advice or anecdotes from people who have been in similar situations would be much appreciated! 

Thanks

ddonq1412

time heals all. if you have the deposit saved you should be in a position to look at the market. as the defaults  have been settled for a year next month. you might get a broker to assit you. The rates you get at might not be the lowest compared to others, you should be able to get somewhere.

haras_n0sirrah

Dont be afraid of approaching a broker. It is what we are here for. Think of us like finance doctors, we have seen it all so just lay it all out on the table so we can try and find the solution.
ACG is our resident adverse specialist to may be worth a pm for help. 

San_Jose

I had similar size/ age defaults and I managed to get a mortgage on the high street recently through natwest. I posted the details on a thread last week on here (link below). So definitely possible.

https://forums.moneysavingexpert.com/discussion/6163257/mortgage-with-defaults

It's the date of the default that's important and not when they were satisfied and as yours are over 2 years old I would think you have a fighting chance (I'm no expert).

jamielutz1987

@haras_n0sirrah Kindly consider editing your post to ensure that you're adhering to the MSE Mortgage Advisor Code of conduct. Cheers.

Heres_the_deal

I cannot offer any advice as I know so little I require a Janet and John book on house buying. Its the forum members that are keeping me sane with my own house buying woes.

However, in the last four months my neighbour (with defaults on his credit file) successfully secured a mortgage via a broker. Whereas my cousin, with a blemish free credit record, an excellent job and a hefty deposit was rejected by two high street banks.

I don't have a clue if that's typical, but it might offer you hope.

ACG

£9k defaults is high, but far from the highest we have seen. 

People tend to fall into 3 categories with adverse:
Habitually bad - defaults/arrears etc every year more or less. 
Youth - could be anything from going to uni getting free overdrafts etc and then not paying them back. 
A life event - divorce/loss of job/illness etc - this sounds like where you would fit in. 

The last 2 are far easier to work through and more likely to get normal rates than the first, but all of them can be overcome in the main. I would like to think you can get relatively normal rates as yours are quite old, they have been satisfied (which is rare) and you have a decent deposit. 

It is one for a broker, but dont be embarrassed. The amount of times I hear from people this will be the worst you have seen and it does not even come close. I have seen defaults for £90k or 15 defaults over 3-4 year period for around £15k in total. You would be surprised at what we see, people do not talk about credit issues, but it affects everyone from those on minimum wage zero hour contracts through to doctors and solicitors.