Help! Confused - information overload

getittogether95

Hi all 

Hoping someone can share similar experience or has any ideas on my situation.

I've fought very hard over the last year to clear up my credit file after, unfortunately, being a victim of domestic abuse (inc. economic abuse). There is just 1 unsatisfied default left on my file for £630 from RBS. This is due to drop off on 31/12/2025, so really not long now. I have a complaint in with them explaining the circumstances and providing evidence of my past situation, but I cannot guarantee they'll remove the default. 

The problem is, I'd like to get a mortgage and there's a house that's popped up that we love. I know my options would be better without this default, but is there a possibility if I work with a broker that they would be able to explain the circumstances to a lender and have the mortgage offer conditional that the default will be completely gone by completion? 

I wouldn't want to get stuck with a higher rate for the sake of a few months, but this house will definitely be sold by the time it drops off my file. I'm guessing there's no way to make an offer and then apply for the mortgage in Jan - that's too long. 

Any ideas anyone? 

Thanks in advance - happy to provide more info if I've missed anything. 

gwynlas

With  the default falling off in December it might take another three months for your file to be updated,(see other posts).
If you want to proceed with purchase now you should explain everything to a broker and see what they come up with.
It might be that you are stuck with a higher rate initially but there is nothing to prevent you switching products in twelve months time.

Mark_d

Having an unsatisfied default of £630 - does that mean you still owe RBS this money but can't afford to pay it?  You might struggle with a mortgage if you are so short of money.

getittogether95

@Mark_d - no, RBS have advised "the account balance of £630.95 was written off on the 25th of April 2022. The account was then closed on the 31st of May 2022." - due to the balance being accrued due to economic abuse. However, the default does not show as settled or satisfied and the balance is still £630 on my file. 

@gwynlas thank you - I just don't really want to have to go with a specialist lender, and hoped a company would allow it given the circumstances. I've got a call organised with a broker this afternoon - lots to choose from there too but hopefully I'll get some guidance. 

ACG

Speak to a broker, see what they can do. 
You can always decide not to proceed if you are not happy with the options or get a second opinion. 

saajan_12

getittogether95 said:

I know my options would be better without this default, but is there a possibility if I work with a broker that they would be able to explain the circumstances to a lender and have the mortgage offer conditional that the default will be completely gone by completion? 

I wouldn't want to get stuck with a higher rate for the sake of a few months, but this house will definitely be sold by the time it drops off my file. I'm guessing there's no way to make an offer and then apply for the mortgage in Jan - that's too long. 

There's nothing beneficial to the lender in you technically having a default from 6 years ago instead of 5.75 years ago. So promising it'll drop off before completion doesn't help. Either they care about 5+ year old history or they don't. 

The benefit of applying after its dropped off is because they never know about it, not because they care about the difference between 5.75years ago and just dropped off. 

Re what to do: 
Either wait until Feb/Mar and trust that other houses will come along; or apply for a mortgage with a short fixed term or even a tracker rate, so you can reapply for a new mortgage after its dropped off and get a better rate then.