Mortgage with old default from same group

lola_girl

I’ve had some defaults fall off my credit file in the last few months from a messy divorce back in 2018.  The last falls off this month.  It was an MBNA/sold to PRA debt.

I have my current account with Lloyds.  My decent savings are with Halifax. I am taking a re-mortgage out (after the default is off).  House worth 230k and mortgage will be 118k so just over 50% LTV.  Salary 50k.  No other debt and have never paid my mortgage or credit card late in the 6 years. 

The best deal is with Lloyds.   I know they are all in the same banking group!  If they ask about previous defaults I will say yes as I know they may have a record of the MBNA one even when off my credit file,  BUT would they decline me because of it?  Is that likely? 

Thanks 

Brie

My understanding is that if you are remortgaging with the same provider they won't decline you but they may not give you their best rate.  Assuming that your current mortgage is with Lloyds of course.

What happened after the default of MBNA/PRA debt?  That might be the crucial thing.  That said with a relatively low LTV and a salary at almost 50% of the mortgage value you could seem a good risk.  They will look at what happened 6 years back but they'll also be seeing good money management since.  

TheSpectator

lola_girl said:

I’ve had some defaults fall off my credit file in the last few months from a messy divorce back in 2018.  The last falls off this month.  It was an MBNA/sold to PRA debt.

I have my current account with Lloyds.  My decent savings are with Halifax. I am taking a re-mortgage out (after the default is off).  House worth 230k and mortgage will be 118k so just over 50% LTV.  Salary 50k.  No other debt and have never paid my mortgage or credit card late in the 6 years. 

The best deal is with Lloyds.   I know they are all in the same banking group!  If they ask about previous defaults I will say yes as I know they may have a record of the MBNA one even when off my credit file,  BUT would they decline me because of it?  Is that likely? 

Thanks 

It's certainly possible they could decline, it's almost certain they will have a record of the default. How much are we talking.

Also, this question us probably better on the mortgages board where you will get some input from mortgage brokers.

lola_girl

No I am not currently with Lloyds for my mortgage but they have the best deal for what I’m looking for.

The MBNA debt was sold by them to PRA.  So shows as settled on credit file for them. 

Credit been fine for the 6 years since just didn’t know if they would refuse me (kind of out of spite!) as they are in the same banking group. 

Hoenir

If they decline your application won't be out of spite. Once bitten twice shy as the saying goes. Mortgage lenders do have finite amount of funds to advance. They can cherry pick their customers. 

lola_girl

TheSpectator said:

lola_girl said:

I’ve had some defaults fall off my credit file in the last few months from a messy divorce back in 2018.  The last falls off this month.  It was an MBNA/sold to PRA debt.

I have my current account with Lloyds.  My decent savings are with Halifax. I am taking a re-mortgage out (after the default is off).  House worth 230k and mortgage will be 118k so just over 50% LTV.  Salary 50k.  No other debt and have never paid my mortgage or credit card late in the 6 years. 

The best deal is with Lloyds.   I know they are all in the same banking group!  If they ask about previous defaults I will say yes as I know they may have a record of the MBNA one even when off my credit file,  BUT would they decline me because of it?  Is that likely? 

Thanks 

It's certainly possible they could decline, it's almost certain they will have a record of the default. How much are we talking.

Also, this question is probably better on the mortgages board where you will get some input from mortgage brokers.

Thanks yes I’ll move my query to the mortgage board.