Getting a mortgage with a default

kluur

Hi,

My partner and I are looking to buy a house soon. We’ve got a decent amount of deposit (40k) and the house is on the market for 150k. Rather stupidly in late 2018 I defaulted on a student overdraft but it was fully paid off in mid 2020. What are our chances of getting a mortgage? We’ve obviously got a decent chunk for the deposit and I’ve made every single payment on time for everything else and my credit rating is fair on most sites with room for improvement. I’ve got an AIP from a couple of places but when applying a few haven’t asked about the default so it’s hard to find out if we have actually got a good chance. NatWest have given us an AIP too and I bank with them. Would they be more likely to give me a mortgage?
I’ve spoken to a mortgage advisor already who says it’s going to be based a lot on my credit rating but I’m wanting to know peoples personal experience with this - have you had a bad credit rating and been approved by a high street lender? Was it difficult to get a mortgage? 

Thanks!

ACG

If the default was with Natwest/RBS they would only consider you for a mortgage if it was cleared in full. If it was not with them, there is a good chance they will accept you with your banking history and level of deposit.