Applying for mortgage with previous defaults


I am looking to apply for a mortgage with my partner on a right to buy property, so we will be getting a significant discount which will stand in place as our deposit. My partner has an excellent credit score and I have a good credit score. However, I have two defaults: one in 2017 for £1000 on a credit card, and £400 on a household utility bill from 2018. Both amounts have been paid in full. The credit card was paid off in 2018 and the utility bill was paid off in 2019. Since 2019, I have not missed any payments, had any hard searches on my report, or any other issues with credit.

I am concerned that the defaults may cause us to be declined and just wanted some guidance as to likelihood of getting accepted with the above. I also note that both defaults show on my Equifax report, but only one appears on my Experian report.

Thank you


  • SusieT
    SusieT Posts: 1,267 Forumite
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    You may be better to post in the mortgages forum (lower down) as there are brokers there who can give you pointers as to what the options are :)
    Credit card debt - NIL
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  • Nobody sees your made up score but you, it is never used in any lending decision

    It'll come down to affordability but a paid default from 5 years ago and one from 2018 will have somewhat less of an impact than a recent one, particularly in an otherwise well managed file with evidence of responsible borrowing e.g. spending on a credit card and paying off in full every month

    If you wanted to borrow say £250k and had income that equated to say 3x borrowing needed to pay this it would be a lot different to stretching to cover if you were 6-7x mortgage to income ratio
  • Go to experienced mortgage broker who will know which lender will take you on.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    Hi, I do agree about contacting a mortgage broker. 

    I'm about to apply for a Right to Buy myself and, having had some financial troubles in the past, I'm intending to consult a broker. My credit reports are stable now but I would still like some advice from someone who knows which lenders to approach. 

    Good luck!    :)
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
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