Mortgage options for someone with a default

Growingold

Hi ,
Asking on behalf of a friend.   Just wanted to know which mortgage companies are out there that would give a mortgage to someone with a default on their credit report.  Default is now 5 years old.

Many thanks

london21

They should contact a broker.

K_S

@growingold Very very generally speaking, if the only issue is one 5+ year old default, you *should* be able to get a mortgage mainstream rates. 

Just to be clear, the above is a very general statement and there might well be relevant specifics in the case that widen or narrow the options potentially available. To give a very crude example, the mainstream options for a borrower looking to maximise borrowing on 95% LTV purchase mortgage with a 5+ year old unsatisfied 20k default on a personal loan might be different to a 60% LTV purchase mortgage borrowing 3 times income with a 5+ year old satisfied £150 mobile phone contract default. I hope that makes sense.

Growingold said:

Hi ,
Asking on behalf of a friend.   Just wanted to know which mortgage companies are out there that would give a mortgage to someone with a default on their credit report.  Default is now 5 years old.

Many thanks 

welly_59

You need to either speak to a broker, or read the criteria guides of the lenders. Some more well-known lenders which are "subprime":
Kensington
Kent reliance
Aldermore
Vida

Foundation

Aldermore will do 90% as long as all defaults are older than 3 years, with no recent credit issues.

ACG

welly_59 said:

You need to either speak to a broker, or read the criteria guides of the lenders. Some more well-known lenders which are "subprime":
Kensington
Kent reliance
Aldermore
Vida

Foundation

Aldermore will do 90% as long as all defaults are older than 3 years, with no recent credit issues.

Nooooooo! 
Its a 5 year old default. 

None of these lenders should be the go to! I am not sure they should even be a Plan B, C or D.
 I reckon absolute worst case scenario would be a little building society if not on the high street. 

simon_or

Exactly! As someone who has years of experience of getting mortgages with a bad credit history (abysmal to bad to tolerable to almost nothing now), you definitely don't need to go to Aldermore or Kent Reliance or a subprime bank for one 5 year old default!

ACG

Maybe if you want a 95% mortgage with a gifted deposit and the default is for £20k and unsatisfied...
But after 10 years of doing mostly adverse, I think I have only see £10k+ defaults a handful of times. Most vary between £10 (mobile phone last payment) and £3k.