Will an old default allow me to get a mortgage?

Posted on 13 January 2010 by Peter

Similar to another post, I defaulted on a credit card when I was at uni (4 years ago) which I settled shortly afterwards. My girlfriend and I have a combined salary of £52,500, a deposit of £50,000 and hoping to borrow £160,000. She has a very good credit rating, but on Experian I have a credit rating of "poor". How will this affect our application taking into account our salary and deposit?


Whilst this will limit the number of lenders willing to offer you a mortgage, you have some very positive factors on your side.  The size of the deposit you are putting down represents a large personal stake for you to lose if you do not maintain you mortgage payments and the amount you wish to borrow in relation to your incomes is by no means excessive. 

Without knowing the size of the default or whether you have made any arrangements to pay it off, I would still expect your application to be viewed favourably even though it might initially fail a lender's credit score.  A good Independent Mortgage Adviser would be able to help you state your case and present it to the mortgage underwriter for further consideration, should this be the case.


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