Call us on 0344 346 3672
or arrange a callback

Mortgages after default

Posted on 19 January 2012 by David


My wife and I are looking to move this year. We are currently in a house that my wife owns and is valued at around £105,000. We have saved £18,000 which we will use for the deposit on a new house when we sell the house we are currently in. Now the problem is I had two items on my credit report that I defaulted on but paid in full last February for £750 and £3000, I have a clear record apart from these. My wife has had a mortgage for 5 years on this property and also owned an house before. We are looking at houses around the £150,000 mark and have a joint income of £50,000 will we be accepted?

David

Please refer to my response regarding First Time Buyers with defaults.  Your situation is very similar and I think that you also check your credit score.

With only a 12% deposit I think your chances are going to be extremely thin, but that doesn't mean you shouldn't try to obtain a mortgage.  Your wife's current lender will be the best place to start as they have first hand knowledge of how she conducts her finances and may be more open than others to increasing her borrowing.

Failing that I recommend speaking to an independent mortgage advisor with access to the whole mortgage market.  They will be able to look at your credit files and then approach the most likely lenders for you.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to try and help you.

Peter

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.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.