Mortgage with Settled Defaults

Posted on 5 April 2018 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?

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.



Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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