Applying for mortgage with defaults

KBat

Hi,

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

K_S

@kbat It might not be for every lender, but given the limited info in your post, you should have access to mainstream rates for an RTB application which is typically very low LTV due to the discount (most lenders will use the discount as deposit).

KBat said:

Hi,

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

KBat

Thank you. I am quite nervous and ultimately do not want to make an application that will be rejected which will entirely  be down to me.

ACG

As KS says, I think you will be fine for getting a mortgage. The issue is more about the rates, I think there has been enough time to look at normal rates. Although I have no idea what normal rates are at the minute, it seems to change by the hour.