Default coming off account in April - Worth waiting?
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reeceg353
Posts: 56 Forumite
Hi All,
Looking to buy a house soon, I have a decision in principle from my broker.
I have a single default on my account from 2012 (£135 total value for a phone bill I forgot to pay, annoying but fair enough).
Is it worth waiting till April, when the default comes off my account before applying for a mortgage from the lender?
I'm just wondering how much a default actually impacts my report - I wonder if a single default automatically means lender's wont lend to me? If that's the case then obviously I'd like to wait.
I suppose long story short - if I wait for this to be removed, will it greatly increase my chance of securing a mortgage or will it have a minimal effect?
Thanks,
Reece
Looking to buy a house soon, I have a decision in principle from my broker.
I have a single default on my account from 2012 (£135 total value for a phone bill I forgot to pay, annoying but fair enough).
Is it worth waiting till April, when the default comes off my account before applying for a mortgage from the lender?
I'm just wondering how much a default actually impacts my report - I wonder if a single default automatically means lender's wont lend to me? If that's the case then obviously I'd like to wait.
I suppose long story short - if I wait for this to be removed, will it greatly increase my chance of securing a mortgage or will it have a minimal effect?
Thanks,
Reece
0
Comments
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If it's coming off in a few months, it would definitely be worth waiting.
Although it's old and won't in itself cause a decline, a clean credit file could certainly get you a better rate.0 -
Sorry, mistake - the account opened in April 2012 but the default date is Nov 2013.
Really was looking to apply now for a mortgage.
In the event I am rejected for a mortgage, I'll wait another 6 months which will take me up to November anyway.
For reference my current credit score is 757/999
Credit limit total is £7,000 across 3 credit cards, I have £0 balance on these cards and pay the full amount every month (i get petrol on one, train ticket on another and food shopping on the last).
The only real credit i've been given has been for a lease on a car, £350 per month for 3 years. Other than that I haven't applied for credit since then (March 2018) and I've never applied for a mortgage.
However, I did take out some payday loans, stupidly, for a period of 6 consecutive months in 2015 and then again in 2016... I suspect this is why I may get rejected for most lenders. I'm 27 years old (not that it matters!) and I was young and was incredibly stupid and naive about what a payday loan may do to my credit file.
Since then however, my credit has been good and based on affordability (payslip proof etc) and my Experian score, L&C have given me a decision in principle of £320,000 (plus HTB scheme, £400k total).
Do you think the chances are i'll be an outright rejection from most mainstream lenders? This is playing on my mind quite a lot and would appreciate an honest answer, even if it's brutal.
Thanks,
Reece0 -
Your credit score is a made up number. Ignore it.
If these rest of your file is in good shape, there's no reason to assume that a fairly old default will cause a decline. The PDLs make it more difficult though.
I'd advise using a decent broker - not L&C. Get someone who is skilled in adverse credit. Also get your deposit as high as possible. There's likely to be an option out there, but it won't be the cheapest.0 -
Deleted_User wrote: »Your credit score is a made up number. Ignore it.
If these rest of your file is in good shape, there's no reason to assume that a fairly old default will cause a decline. The PDLs make it more difficult though.
I'd advise using a decent broker - not L&C. Get someone who is skilled in adverse credit. Also get your deposit as high as possible. There's likely to be an option out there, but it won't be the cheapest.
Any suggestions mate? I've heard they're not half bad myself, but happy to speak to a number of them.0 -
Speak to friends and family. A personal recommendation is the best way to go. L&C are just a factory line - they are to mortgages what Greggs are to fine dining.
Or post on the mortgages board - you might get some ideas there, there's a lot of good brokers who post there, although they won't tout for business.0 -
Deleted_User wrote: »L&C are just a factory line - they are to mortgages what Greggs are to fine dining
and quote of the day goes to....0 -
as suggest OP - have a shop around and speak to a few to make sure you happy with your own decision at the end of the day0
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Hello
I have a credit score problem.
I had a contract with EE and on the last invoice EE added £ 200 in addition to how much I paid for no reason.
I told them they made a mistake but they did nothing to solve the mistake.
I refused to pay the invoice until it eliminates the amount of extra money.
Eventually I was contacted by Lowell Portofolio
I explained my problem and they were able to take out the extra money at that moment I paid without hesitation.
As proof I have the emails of communications between me and Lowell Portofolio.
My question is why it seems that I had problems paying as long as EE's blame0 -
The answer to your question is because it seems there was confusion over the amount.
But I'm not sure that's the real issue here.0
This discussion has been closed.
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