Mortgage with a default.

PecrySugden

Hi, 

I'm July 2020, I defaulted on payments on an Argos card. It was an error in my part and as soon as I was advised I paid it off in full instantly over the phone. I think the amount was around £170. 

Me and my partner now want to get a mortgage. I'm not a first time buyer. We have zero debt, a decent income and 10% deposit. 

What are the chances we'll be accepted by a high street lender? 

Is it unlikely we'd be considered for a 5% deposit as I'd like to hold some money back if possible.

Thanks 

TheJP

A default is more than 3-6 missed payments, are you sure its a default and not a missed payment?

Everything stays on file for 6 years but the severity decreases each year, the amount is also a factor. If what you say is accurate then i don't think you have anything to majorly worry about.

ACG

If it is definitely a default, 5% is going to be a tough ask. 
10% should be possible but still not a given. 

I think you need to get a copy of your credit report and speak to a broker.  If you have saved your deposit, been in your jobs a while, not looking to stretch the amount you can get then you stand a better chance than newly employed with a gifted deposit - the devil is in the detail with applications like this. 

PecrySugden

ACG said:

If it is definitely a default, 5% is going to be a tough ask. 
10% should be possible but still not a given. 

I think you need to get a copy of your credit report and speak to a broker.  If you have saved your deposit, been in your jobs a while, not looking to stretch the amount you can get then you stand a better chance than newly employed with a gifted deposit - the devil is in the detail with applications like this. 

Thanks, today we were offered a 91% mortgage agreement in principle with Skipton through a broker. 

ACG

Sounds promising then. 

PecrySugden

Mortgage offer made within two working days of applying.

ACG

Congratulations.