Mortgage with old default from same banking 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 

Hoenir

Technology has made the collating of data far easier. While no personal data is retained, Possible to cross reference future applications to historic events. If your application is declined then you'll know why. 

bell2020

We were declined by NatWest because of historical default 10+ years ago that was settled and isn’t on credit file. 

lola_girl

bell2020 said:

We were declined by NatWest because of historical default 10+ years ago that was settled and isn’t on credit file. 

Ahh seems a posdibility then!  Did they decline you at AIP or on full application (ie did you have a hard credit search)? 

No19v87

bell2020 said:

We were declined by NatWest because of historical default 10+ years ago that was settled and isn’t on credit file. 

I think I’ve read on here that Natwest are the most sensitive about previous banking history across their group. 

I believe it depends on the bank/group and it’s probably a question for a broker to answer as they’ll likely know based on experience.

lola_girl

Any brokers / mortgage advisors able to give any opinion on this?  

ACG

I dont know the answer with Lloyds. I know Natwest/RBS will never allow you to take a mortgage if they have ever had to write off a penny (even if it were 20 years ago). 

I would be surprised if they would offer you a mortgage, but cant say for sure. Thats why I never answered the thread previously... I thought I might have learnt something new off this thread. 

lola_girl

ACG said:

I dont know the answer with Lloyds. I know Natwest/RBS will never allow you to take a mortgage if they have ever had to write off a penny (even if it were 20 years ago). 

I would be surprised if they would offer you a mortgage, but cant say for sure. Thats why I never answered the thread previously... I thought I might have learnt something new off this thread. 

Thanks for the honest answer!  I may put in an AIP and see if they decline it as (id imagine) they would decline at that stage if they were going to! 

There’s a decent enough rate with Santander that suits me so may just go with that one - I have my bills account there.   I’ll update the thread anyway 

bell2020

lola_girl said:

bell2020 said:

We were declined by NatWest because of historical default 10+ years ago that was settled and isn’t on credit file. 

Ahh seems a posdibility then!  Did they decline you at AIP or on full application (ie did you have a hard credit search)? 

We got the AIP which was soft check. We were declined at full application. Hard check not showing on our credit files though! 

Hoenir

bell2020 said:

lola_girl said:

bell2020 said:

We were declined by NatWest because of historical default 10+ years ago that was settled and isn’t on credit file. 

Ahh seems a posdibility then!  Did they decline you at AIP or on full application (ie did you have a hard credit search)? 

We got the AIP which was soft check. We were declined at full application. Hard check not showing on our credit files though! 

Doesn't require a hard check if they process through their own internal register first. 

debt_free_delilliah

I re-mortgaged my existing Nationwide mortgage with 5 defaults 2 years ago. Just did it online and it was approved instantly. I had a credit card default with them but had been paying my mortgage and the defaulted credit card back with my issues.  

We’re in the process of buying a new house. I have one default that falls off my credit file this month and one that falls off in April. All the others have already fallen off my credit file. One broker I spoke to said I would only get a mortgage with a specialist bad debt lender and suggested a rate of 6.14% fixed for 5 years and any term less than this would have a higher rate. This was with a 50% LTV. I spoke to another broker and secured a mortgage with Halifax at 4.33% for 3 years. They were fine with the defaults about to drop off. By the end of next month I should have no defaults on my credit file at all. 

I’d suggest speaking with your existing provider or a broker.