Hi

I am making some enquiries into mortgages and the acceptance criteria, which I know varies from one to the next.

I have a chequered credit history and have had very little credit during the past 10 years.

I had a CCJ which is now off my record but it caused major problems in the past so I applied for a vanquis card over 2 years ago. To cut a long story short I missed 3 payments and ended up with a default, may 2007. I have now settled the account and it is satisfied but obviously the default still shows.

I earn over £23,000 per year now and could afford a mortgage but what are the chances of being accepted? Especially considering the current tension amongst financial institutions and lenders.

Thanks

Hi...it will depend on the amount of the default? Over 250 will knock out a lot of lenders especially on the High Street, however the likes of Abbey may still consider it. Other lenders that accept or ignore defaults will have reduced loan to value so this means that you will require a larger deposit. See a local broker to see if you can fit the High Street because if you don't the other types of lenders will only be accessed though a broker.

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Regards

Ian

Hi

Thanks for your reply.

The default is for £305 and dated May 31 2007. I will be applying for a mortgage with my partner who has a near 100% perfect credit rating and currently has a property.

Would making a joint application mean an overall higher rate because of my blighted financial past?

Thanks

Hi...touch and go for the 12 month period to expire for the default to be ignored. If it is a joint application then it will be rated on the lower score and you will only know how you figure when you apply. In todays climate I would try Abbey first as they are one of the more sympathetic lenders when it comes to minor adverse, but use a broker so that there are no unnecessary credit searches.

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Regards

Ian

Hi Ian thanks for your advice.

I was also wondering, can a company default a debtor more than once?

Thanks

You can only be defaulted for a particular instance once, they can default you again if it is for another loan. That doesn't mean to say that the debt can't be passed on to someone else to chase it.

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Regards

Ian