Help! Declined mortgage after AIP after discovering poor credit

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Jlp123
Jlp123 Posts: 8 Forumite
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in Mortgages & endowments
Hi
Can anyone help. Me and my partner have applied for a mortgage. We have over £50,000 deposit and 85% LTV and a combined income of £70,000. The problem is I have discovered I have a couple of defaults on my credit file from over a year ago 😔 from a previous relationship that didn’t end well.
Our mortgage advisor told us this today. We had a mortgage in principle with accord but now they have refused the application. My partners credit is squeaky clean and now mine not so much.
Can anyone help. Will we get a mortgage offer with another company?
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  • TomMawdsley
    TomMawdsley Posts: 2 Newbie
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    Hi There!

    Lenders look at a few different things when assessing defaults, such as:

    How much the defaults were for
    When they were registered
    Are they satisfied
    What were the defaults for

    There may be a lender out there that would consider the mortgage, even if accord wouldn't. I'd suggest going back to your adviser, or seek another adviser if your current one can't help.

    Hope this helps!
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    How much?

    Have they been paid now?
  • Jlp123
    Jlp123 Posts: 8 Forumite
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    Hi thank you for your help.

    They are settled and satisfied and all paid off.
  • Jlp123
    Jlp123 Posts: 8 Forumite
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    I can’t remember the exact amount
  • ACG
    ACG Posts: 23,729 Forumite
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    There may be high street options, but it may end up costing you more - worse case scenario would be around 5%, chances are it will be less than that but the devil with anything like this is in the detail.

    What has your broker said? I assume they have requested a copy of your credit report?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Jlp123
    Jlp123 Posts: 8 Forumite
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    Our broker has just said to leave it with him and he will look in to it, he said it shouldn’t be a problem as the defaults are easily explained but I worry he is fobbing us off.
    Yes our broker has the copy of my credit report with all the detail in.
    It’s so frustrating as we are both on good
    Money and a really good deposit. We have found our dream house and had the offer accepted, Sold my partners house and we are all ready.
  • amnblog
    amnblog Posts: 12,445 Forumite
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    Defaults are not explained.

    They are acceptable to Lenders or are not, explain actions very rarely have any bearing and then only when the Lender accepts the defaults in principle.

    Did the Broker not check your file before they ran a decision in principle?

    Were you not aware you had multiple defaults in the past 36 months?

    This needs to be sorted properly by someone who knows what they are doing.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Jlp123
    Jlp123 Posts: 8 Forumite
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    Hi
    I wasn’t aware no. I left a very bad relationship in a bit of a mess and it’s only when going through all of this that I found out.
    The defaults are from a late payment on a water bill and a credit card.
    Nothing showed up on a MIP it’s only after going through the full application ��
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    Good brokers demand credit files from all 3 CRA's. Your broker it seems did not. Bad move and wasted a credit search
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • ACG
    ACG Posts: 23,729 Forumite
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    I agree with the others, we typically always ask for credit reports upfront now. This is a prime example of why, people historically have told us no bad credit, we then waste our time doing research based on incorrect information and then doing a DIP/AIP that was never going to pass.

    See what your broker comes back with. We do not have enough information to work off but your broker has everything now.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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