Mortgage with old default from same banking group?

lola_girl

debt_free_delilliah said:

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. 

Thanks for this info.  Can I ask when you applied to Halifax were any of your defaults or previous defaulted debt with Halifax, Lloyds or MBNA out of interest? 

Just wondering if they would refuse me at Lloyd’s or Halifax as I defaulted with MBNA 6 years previously.  For info the debt was sold onto a debt collector not paid off to MBNA in full. 

Thanks 

debt_free_delilliah

No defaults with Lloyds or Halifax. The default that falls off my credit file this month was originally a MBNA credit card debt although it had been long sold on. I think they sold it on almost immediately after it defaulted. 

I still think you’d be better re-mortgaging via a broker than doing it by yourself though. You’d potentially get better rates also. 

lola_girl

debt_free_delilliah said:

No defaults with Lloyds or Halifax. The default that falls off my credit file this month was originally a MBNA credit card debt although it had been long sold on. I think they sold it on almost immediately after it defaulted. 

I still think you’d be better re-mortgaging via a broker than doing it by yourself though. You’d potentially get better rates also. 

Oh that’s good to know.  I haven’t had any issues ever with Lloyds or Halifax but was worried the MBNA default (also long sold on 6 years ago!) would be held on their files as Lloyds group own MBNA now but maybe it won’t impact! 

I won’t have any defaults showing on my credit file when I apply and actually have a good credit score as I have had no payment issues on my credit card or mortgage for 6 years so should be fine going to a high street lender I think. 

Hopeful0324

We had a default in 2014 with Natwest - they approved our DIP in 2024 then declined at full application after doing a hard search. So still holding a grudge after 10 years!!

Hopeful0324

lola_girl said:

Oh that’s good to know.  I haven’t had any issues ever with Lloyds or Halifax but was worried the MBNA default (also long sold on 6 years ago!) would be held on their files as Lloyds group own MBNA now but maybe it won’t impact! 

I won’t have any defaults showing on my credit file when I apply and actually have a good credit score as I have had no payment issues on my credit card or mortgage for 6 years so should be fine going to a high street lender I think. 

If you are remortgaging with the same bank then the process is much easier - application can usually be done online and with no further credit search. If you want to switch to a different bank for your remortgage then this will need a full hard search which may be then more tricky. Not sure as not experienced in this field but would Lloyds have all historical records from MBNA on file?? 

lola_girl

Hopeful0324 said:

lola_girl said:

Oh that’s good to know.  I haven’t had any issues ever with Lloyds or Halifax but was worried the MBNA default (also long sold on 6 years ago!) would be held on their files as Lloyds group own MBNA now but maybe it won’t impact! 

I won’t have any defaults showing on my credit file when I apply and actually have a good credit score as I have had no payment issues on my credit card or mortgage for 6 years so should be fine going to a high street lender I think. 

If you are remortgaging with the same bank then the process is much easier - application can usually be done online and with no further credit search. If you want to switch to a different bank for your remortgage then this will need a full hard search which may be then more tricky. Not sure as not experienced in this field but would Lloyds have all historical records from MBNA on file?? 

I have to remortgage as I am buying out ex partner so full application regardless.  Deals not so good with my current lender hence shopping around.  Think I may just avoid Lloyds /halifax and apply to Santander.   

I would assume probably not with regard to historical data but who knows.   Guess I just don’t want a hard search on there if they are going to decline me anyway because of it! 

kingstreet

Hopeful0324 said:

We had a default in 2014 with Natwest - they approved our DIP in 2024 then declined at full application after doing a hard search. So still holding a grudge after 10 years!!

It's actually well after the hard search. I once had a NatWest application declined after nearly three weeks based on previous debt with RBS Group.