mortgage lending criteria - defaults not listed

selectcase

Hi All

I have been looking a various sub prime lending mortgage criteria by the differant lenders and while reposession/bankrupt/iva/missed payments and ccj limits are nearly always there with the variois time limits ect i have yet to find defaults listed. yet when i do a search on the net many people say defaults are as bad as ccj's.

do many sub prime lenders ignore defaults or are they considered the same as ccj's if they are considered the same i would have thought the lenders would have stated this in thier criteria?

_Andy_

Majority ignore defaults. Having said that depending on the default amount/s, date/s and quantities, some high street lenders will consider lending to you.

selectcase

Thanks for the info it makes the reply form one advisor i tried the other day locally even more interesting

Conrad

All will take defaults into account when assesing your creditworthiness, afterall a default is applied when a person fails to keep to the contractual obligations placed uon them when they agreed the commitment.

The FSA places obligations upon lenders to 'lend responibly'. Ignoring defaults would of course break this code.

homer_j_3

yet they still do it Conrad as the overall case will be argued that it stood up to their responsible lending criteria.

Defaults with some lenders are ignored but to be honest if that is the only thing you have, there will be a good chance that a high street lender will look at you - depending on size of default, amount of defaults and dates of defaults.

selectcase

I should be ok as i have 50% deposit and need to borrow 2.5x income or 80k. I have no ccj's and the mortgage payments were always clean and never in arrears. I am not worried if its with a specialist lender for a few years as i have cleared all outstanding debt. The only wait at the moment is for my credit file to be updated to show that these debts and the mortgage has been cleared as well as the electoral roll to update with my new present address. At the moment any searches would say i still owed about 128k incl the mortgage.

homer_j_3

When you have done all of that, take a printed copy to a broker and they will identify whether you are likely to find a prime lender to help.