Thanks for your reply. The bank we originally approached havent got back to us as yet regarding the conditions. We contacted London and Country yesterday after being recommended them by a friend and the chap we spoke to said they can find us a mortgage but it will be with a higher interest rate. So we are waiting for them to call back today and find us a mortgage. What i want to know is, what is classed as a 'higher rate'? We have been paying 7.64% as we had a variable mortgage is it likely to be a lot more than this? It doesnt matter if it is because we will be a lot better off after becoming debt free anyway so could probably afford it. London and Country did say though that no high street lender would lend to us while we have a default on our file.

Thanks again for the reply, Sorry for all the questions

Monica x