A broker told me I can't get a mortgage because of a default settled 4 years ago. Is this true?

Posted on 5 April 2013 by Oliver


I have been told by a mortgage broker, that i am unable to get a mortgage due to a settled default on a £1000 credit card bill, this was settled in march 2009. I have a 15% deposit and a good credit rating (900). Is there anything I can do as am feeling pretty desperate now?

Oliver,

I am slightly surprised at your brokers inability to get you the mortgage you are looking for purely on the basis of this one historic adverse credit item.

Whilst it is true that at the higher Loan To Value's (LTV's) any adverse credit will have a more negative impact for many lenders, these tend to be more the high street ones, for whom the "computor says no" is standard mantra. The default is quite historic, and it seems a little odd that this is the sole reason for you being told that you can't get a mortgage.

As an Independent, Whole of Market broker, we also deal with those lenders who still manually underwrite cases and can therefore judge each application on its indivdual merits.

Without knowing the full details on the rest of application I can't be anymore definite, but as long as the rest of your credit history is ok, I'd be disappointed if we couldn't get you a mortgage.

If you have a copy of your credit file, then I'd certainly suggest it's worthwhile speaking to one of our consultants to see what we could do to help you. If you'd like to do so, please let me know and I'll arrange a convenient time to speak to one.

Regards,

Alistair

contact@johncharcol.co.uk

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