Mortgage question

Shay10

Hi me and my wife are going to apply for a mortgage with Halifax.  Thing is I have a default from United utilities.  It only shows on my Equifax.  It is from 2015. Just before the default on my credit file it says I was in arrears.  The thing is I have looked at the credit questions on the application form for halifax online and one of the questions is... have you been in arrears with any borrowing in the last 6 years? I dont know how to answer this question as being in arrears with my water bill isnt really borrowing is it?  I want to be honest on the form when asked but dont know how to answer it. We are applying direct. The default is settled. Do halifax check equafax when you apply for a mortgage or is it experian and transunion.  Thanks in advance if anyone can advise me on how to answer the question. 

bamgbost

Best to answer yes. And be honest. As it will show on your credit history (IMO) and 5 years is a long time ago. They seems to care about more recent arrears ( 3 years). But a mortgage Broker will know how to handle this best.

MWT

Definitely one for the brokers to comment on, but I wouldn't rush to say 'yes' until you get further advice as there is a risk of the automated scoring at the application stage just denying you on the basis of the 'yes' without getting as far finding out it was just a utility bill...

K_S

Shay10 said:

Hi me and my wife are going to apply for a mortgage with Halifax.  Thing is I have a default from United utilities.  It only shows on my Equifax.  It is from 2015. Just before the default on my credit file it says I was in arrears.  The thing is I have looked at the credit questions on the application form for halifax online and one of the questions is... have you been in arrears with any borrowing in the last 6 years? I dont know how to answer this question as being in arrears with my water bill isnt really borrowing is it?  I want to be honest on the form when asked but dont know how to answer it. We are applying direct. The default is settled. Do halifax check equafax when you apply for a mortgage or is it experian and transunion.  Thanks in advance if anyone can advise me on how to answer the question. 

@Shay10 Unfortunately, I myself can't answer your Halifax specific question as it will likely breach the compliance requirements I am supposed to follow, as I understand it. Hopefully another broker might not have that issue and can answer the specific question.

In your place, if I were applying direct (to any lender) and had to answer that or a similar question, I would put it down as 'Yes'.

Halifax can check one or more of the credit agencies so don't factor that into your decision.

Out of interest, if you are comfortable doing so, would you mind saying what made you go direct and not use a broker? Just to be clear I'm not looking to debate or convince you otherwise, just genuinely interested. As is their right, borrowers should use whatever channel they are comfortable with.

Shay10

Thankyou for your answer. Me and my wife have heard that Halifax may accept with a default. We did an aip online and it said we qualified and could lend what we asked for. I dont know how reliable they are but I thought by doing one of them and we passed that maybe halifax could lend. To put the full app in i know that there are a few credit questions that will be asked. I thought we could save by not going to a broker and maybe try our luck with Halifax.  Seems like forever to get were we are savings wise. We have a 15% deposit but at the mo only just enough to pay for solicitors and the actual deposit.  Dont know how much extra we may need. We are both ftb. Also I would consider a broker but dont know how much they cost. 

K_S

@Shay10 I can't really explain the benefits of using a broker and how to go about finding on any better than the MSE website itself See here

Some brokers charge a fee and plenty don't. If you are not comfortable paying a fee or just don't want to. then just pick one of the fee-free brokers recommended on the MSE webpage and talk to them about your borrowing options. Good luck!

MFWannabe

As KS has said there are fee free brokers. Personally I would go to a broker; I did when I first bought; just saves you the hassle of searching for best deal and the form filling; they may also save you money