Mortgage with a default

MelissaS123

Hey! 

Has anyone got a mortgage with Nationwide with a default on their account? My partner and I got a AIP from Barclays, we seen a mortgage advisor and they found us a mortgage with Nationwide at 2.99%. We have 20k deposit. The default is 5 year old and defaulted amount of £137. It is a satisfied default. I can’t help but be nervous and afraid our mortgage application will get declined. I was just wondering if anyone has any positive outcomes. 

Thankyou

K_S

@melissas123 Nationwide does not have any explicit criteria re defaults other than needs to pass "credit-scoring" (this is a lender specific score based on the product applied for, LTV, your application details and credit history, nothing to do with your Experian/Clearscore/Credit-Karma credit score).

The "credit-scoring" will happen at the soft-footprint DIP stage so you will know early enough, before putting in a full application. If you get past the DIP stage, I wouldn't expect the decision to be overturned at underwriting based on the age and value of the default. 

Given the rate, I'm assuming it's a 95% LTV app? That means the lender credit-scoring requirements will be quite high but you'll know once your broker runs a DIP. 

If your default only shows on one credit-file (Experian/Equifax/Transunion), there's even the possibility that it simply won't be picked up by the lender.

MelissaS123

K_S said:

@melissas123 Nationwide does not have any explicit criteria re defaults other than needs to pass "credit-scoring" (this is a lender specific score based on the product applied for, LTV, your application details and credit history, nothing to do with your Experian/Clearscore/Credit-Karma credit score).

The "credit-scoring" will happen at the soft-footprint DIP stage so you will know early enough, before putting in a full application. If you get past the DIP stage, I wouldn't expect the decision to be overturned at underwriting based on the age and value of the default. 

Given the rate, I'm assuming it's a 95% LTV app? That means the lender credit-scoring requirements will be quite high but you'll know once your broker runs a DIP. 

If your default only shows on one credit-file (Experian/Equifax/Transunion), there's even the possibility that it simply won't be picked up by the lender.

We had an offer accepted for £182,000 and are asking to borrow £162,000 with our £20,000 deposit over 35 years.

The home we had our offer accepted for is our first home and I’ll be so disappointed if our mortgage application gets declined 😭

K_S

MelissaS123 said:

K_S said:

@melissas123 Nationwide does not have any explicit criteria re defaults other than needs to pass "credit-scoring" (this is a lender specific score based on the product applied for, LTV, your application details and credit history, nothing to do with your Experian/Clearscore/Credit-Karma credit score).

The "credit-scoring" will happen at the soft-footprint DIP stage so you will know early enough, before putting in a full application. If you get past the DIP stage, I wouldn't expect the decision to be overturned at underwriting based on the age and value of the default. 

Given the rate, I'm assuming it's a 95% LTV app? That means the lender credit-scoring requirements will be quite high but you'll know once your broker runs a DIP. 

If your default only shows on one credit-file (Experian/Equifax/Transunion), there's even the possibility that it simply won't be picked up by the lender.

We had an offer accepted for £182,000 and are asking to borrow £162,000 with our £20,000 deposit over 35 years.

The home we had our offer accepted for is our first home and I’ll be so disappointed if our mortgage application gets declined 😭

@melissas123 Based on the limited info in your posts, and given the fact that you've passed one mainstream lender DIP, I am pretty sure you should be fine getting a mainstream mortgage at 90% LTV, good luck! 

Oldjolly

MelissaS123 said:

Hey! 

Has anyone got a mortgage with Nationwide with a default on their account? My partner and I got a AIP from Barclays, we seen a mortgage advisor and they found us a mortgage with Nationwide at 2.99%. We have 20k deposit. The default is 5 year old and defaulted amount of £137. It is a satisfied default. I can’t help but be nervous and afraid our mortgage application will get declined. I was just wondering if anyone has any positive outcomes. 

Thankyou

Was wondering if you had any update on this?

YorkyGal10

Melissa - any update?