Posted on 4 September 2012 by Sophie
I have a satisfied default on my credit file of £4000, it went on nov 2009. Me and my partner both now have steady income between us of £47000 per year minimum. I want to know the chances of getting a first time buyer mortgage for a house worth 125000-130000. Also if not a first time buyer mortgage with a 10% deposit any other mortgage with a 20% deposit.
Your default is going to make it very difficult, if not impossible, to get a mortgage. Despite being satisfied, it's very existence is going to stop the majority of lenders even considering a mortgage and a high Loan to Value (LTV) 80 - 90%, will be out of the question.
Until the economic situation changes I think you will need to concentrate on saving a larger deposit, at least 25% whilst maintaining the payments on any existing credit agreements. The default will be removed from your credit file 6 years after it was first registered and by then you will be in a far better position to secure a mortgage whatever the economy is doing.
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.