Mortgage with 2 defaults - is it possible?

bundubasher

Hi guys, desperately need to get a mortgage. Problem is, I have two defaults on my credit file and have already been turned down for a mortgage by mainstream lenders. I have been offered a 75% sub-prime mortgage by Birmingham Midshires but just cant afford to put down a 25% deposit. Any advise on a subprimer that can lend with 10%-15% deposit?

_Andy_

Hard to say without knowing the full extent of the adverse. Might be an idea to get a copy of your credit file (Experian or Equifax) and take it to a whole of market broker.

druss

Have you tried Abbey? If the deafults are small or old they may consider.

Unlike most lenders who auto decline on adverse regardless of score, Abbey score then apply negative points for adverse, if you still reach their pass mark then they in theory will lend.

They may want more information, ie the cicumstances leading to the defaults etc

but is definately worth trying.

Also northern rock did this as well, not sure wether they still do as havnt used since their rates got worse but they in theory could lend a higher ltv than birmingham midshires.

bundubasher

i have 2 defaults listed, the first one is lowell portfolio -for under 2,000 - to be honest not sure what this is about so have written to ask for cca and to challenge it. The second one is from a personal loan with HFX which was registered on my credit file after paying off with additional borrowing from my mortgage. HFX added the full loan amount as defaulted +25,000 even though it is now satisfied. Interestingly is that a BM application through HFX offered me 80% LTV while a direct application with BM offered me 75% LTV. I also wonder if HFX credit score, the default on their own account doesnt come up but only the Lowell?

Anything out there?

bundubasher

by the way, the Lowell Portfolio 1 ltd default relates to a debt they must have purchased from one one of my creditors. As for HFX, they registered the default only when the account was paid up in full i.e. I shouldnt have paid off the personal loan - should have kept it. The other bit of information is that when I took the additional borrowing to pay off mortgage I took up a 3year deal. The default was then registered. When I then applied for a home move, this was declined - now I have to pay the early exit fees as I am no longer eligible for a new mortgage. As far as I am concerned, i should not have been locked into a 3year fixed deal in October last year as my credit file hasnt changed except for the default entry by HFX? Sorry, getting complicated

bundubasher

just called abbey to find out if they will lend someone with defaults and they said as long as the defaults have been satisfied, they will look into it. I then asked how long the account has to be satisfied for before they will consider it and they said as soon as the credit file is updated. Is this correct? Anyone with experience of how satisfied defaults are dealt with?