95% First Time Buyer, but can I get a mortgage with a disputed default from 1999?
Posted on 25 March 2013 by Vipul
Hi, my wife and I are first time buyers. I am looking for a property of around £75k, and I have 5% deposit. We have a combined income of £28000 however I have a unsettled default of £9,500 from 1999 from a business loan me and a friend took out which we are in dispute over. My wife has never had any credit cards or loans. Would it possible for me to get a mortgage or would I have to wait until the default is off my file?
It is certainly true that adverse credit does have an impact on a lenders decison to lend, partcularly at the higher Loan To Values (LTV's), and that ideally it would be better if the default was satisfied and removed. However as it's been on your file since 1999 and will stay on there for 6 years from when it's satisfied, it's not likley to be gone anytime soon. You say that you are in dispute over the loan, have you put a 'notice of dispute' on your credit file ?
It might be possible to get a lender to take a view on your case as long as the rest of your credit profile is exemplary, and it's likley that we'd need to speak to a lender who manulally underwrites cases, rather than those whose make computor based decisions.
If you'd like to discuss your case in more detail, then I'd recommend getting a copy of your credit file (link attached) and once you've received this, then please let me know and I'll arrange a convenient time for you to speak to one of our our consultants.
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