Mortgage company advice - 10% deposit but £350 default 4 yrs ago is hindering

d912mv

Hi,

I have applied for a mortgage on a property worth £210,000 and am goign to put a 10% deposit down.

My credit history slightly flawed. I have a £350 default (which has been paid off) that went onto my credit history 4 years ago.

Despite the relatively small amount and zero missed payments or negative aspects on my credit history apart from that, I am struggling to get a good rate mortgage. The best I can find is a 2-year mortgage at 6.8% with a £795 application fee.

Are there any mortgage companies who will look and listen? i.e. realise that I was a student with no money and no idea of credit ratings and accept that now I am employed with a good salary and have a £21,000 deposit to put down?

Any companies or mortgage broker suggestions would be good.

thanks,
D.

chappers

Are you sure there isn't any other reason, I managed to get a standard mortgage from Abbey a couple of years ago with a £1000 default that had only been settled earlier in that year. have they definitely told you its your credit history that is the problem.have also managed to get abTL mortgage since not such a good rate but thats another story.

NeilQuinn

Birmingham Midshires. Sometimes they'll completely ignore defaults depending on the rest of your credit score. Depends on how long ago it was paid off.

Dan_Collins_2

Coventry may ignore them as over 3 years old. The issue you have is that scoring systems have been tightened up! Who have you tried? How long ago was it paid off?

Halifax may be worth a shout and Abbey may be also.

herbiesjp

Have you got up to date copies of your credit file?

A lot of lenders will ignore - so you need to make sure that the information on there is correct

17Dave

You don't say how you have been searching for a mortgage - or who you have applied to. Have you been looking just online or with a broker? I agree with OPs that you should - on the face of it - be able to get a better deal than 6.8%. If you haven't already talk to a fee free broker.

HelpWhereIcan

Woolwich, Chelsea ,Accord, Royal Bank - are possibilites as are the others above and some that have not been mentioned.

Depends on exactly when the default was settled (last 12 months or more than 3 years ago), what other credit appears on your file and what multiple of your income you are looking at or even who you bank with.

You should be ok to get a better deal than the one you have seen but no-one posting on a forum can give you a definitive answer.

The point is to get some advice as Dave says. Do not make too many applications as this could reduce your credit score.

As Dave says, get some advice from a whole of market broker.

Ideally use personal reccomendations to pick one or even something like the Yellow pages etc. No harm in speaking to more than one and always make sure to ask the questions Martin suggests in http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816#step2.

Be careful of anyone who approaches you unsolicited and use the services of a face to face adviser unless you are confident enough to deal with someone via post & email.

Hope this helps
Good Luck