About to apply for a mortgage after defaults dropped off in early April

Londonian001

Hi all 

Just at the time where I'm ready to apply for a mortgage. After falling into bad debts in 2018 as a result of government changes to IR35 in 2017 (I lost a third of my monthly income), I've managed to rebuild my finance stronger than ever. Recently, 4 defaulted accounts dropped off my credit file in early April but there's one late payment one which remains. However, a FOS investigation has asked that the creditor defaults the account back to May 2018 so that it drops off too. But the creditor is resisting saying I made an arrangement to pay by entering a DMP, meaning it will have to go to the ombudsman. So my questions are - 

1. How soon after the default dropping off my credit file is it safe to apply for a mortgage?

2.  Is it perhaps ok to apply with just one account of 4 late payments?

I did the Mojo mortgages pre-checks which told me I've basically got no chance at all. This is weird as I'm in the very good to excellent brackets with all 3 credit agencies, have strong affordability scores (over 90% on Clearscore for the last 2 years), have an annual salary of £55k and a £45k deposit which can be pushed to £50k. 

Any thoughts would be much appreciated. 

ACG

Are you in a DMP? Or was it an arrangement to pay? 
Did the status 4 late payment stop in 2018 or has that been showing every month as a 4 since? 

JustMe18

By dropped off you mean paid or completely gone from your file as 6 years have passed? 

Londonian001

Thanks both, not in a DMP. I finished it in 2021 after starting in 2018, everything paid back in full. All my debts were in the DMP 5 in total, 4 defaulted and one just marked as late payment. I asked FOS to investigate and get them to default it so it can drop off my file. FOS agreed but the creditor refused saying the DMP was an arrangement to pay. The investigator said she will ask them to reconsider as she didn’t accept their reasons. The last late payment was in July 2018 but FOS asked them to register the default for May 2018 to be in accordance with the 3-6 months guidance. 

In short, currently have no defaulted accounts on my file and just one with 4 late payments but the defaults got removed at the beginning of April only. Bit worried about Mojo outcome though. 

ACG

Ignore Mojo, the amount of people I have spoken and helped to after they (and L&C and other similar sized large call centre type brokers) have said something cant be done is ridiculous. 

Those firms are the reasons why I now say "I cant do it" rather than "it cant be done", as I have no idea if it is a lack of knowledge. I would hate to prevent someone from buying a home because of my lack of knowledge. 

Its difficult to answer your question without seeing yoru credit report. But find a proper broker, make sure you only pay on results and I think you will have some options.

lydjenks

Just jumping on this thread - @ACG It would be interesting to hear if you had any reccomendations (note you are an advisor also). Not in the same situ as the OP but looking to get a Shared Ownership mortgage with 2021 defaults