If you have credit defaults showing on your credit file which covers the last six years, you would be declined by most, if not all high street lenders.
Why you may ask, because high street lenders base their decision to lend or not on credit scoring where the decision is made by the computer with no manual input and is purely based on how many points you score.
Fortunately you have come to a very experienced broker with access to the whole of market where the Specialist Lenders base their decision on a manual underwrite to see if they can help you, and if they can what product would be available to you.
With the Specialist Lenders they have a criteria based underwriting procedure which allows for credit defaults depending upon;
1 The size of the default
2 When it was registered
3 How many defaults are showing
4 Are they satisfied
5 What the defaults are in respect of
With our Specialist lenders there are differences in their criteria based underwriting but they all want to know when the default was registered. If they were outside of 24 months satisfied or not most lenders would ignore them at 90% LTV.
Inside of 24 months the underwriting is far more specialized with most lenders ignoring defaults that relate to Mobile phone or Utilities. If the default is outside of 12 months but within 24 months, then there will be a limit to the size and the amount of defaults with maybe 1 inside 12 months but none in 6 months. We also have the odd feature that some lenders will ignore defaults of less than £300, but this is the exception rather than the rule.
What you also have to factor into what you can expect from the lenders is that the bigger deposit that you have, the lender is looking at a lower loan to value, which means less risk for the lender and they are prepared to be far more flexible with their underwriting at loans to value of 75% LTV or less.
What we have dealt with so far is defaults on un-secured credit and how lenders may react based on the credit profile and the loan to value. Where lenders will take a much more stronger reaction to a default is where the default is in respect of a mortgage or secured loan. Any default within the last 24 months will impact your ability to get the best rates.
To see where you feature in today’s mortgage market you should if you feel you may have any credit issues is obtain a statutory copy of your credit file which you can obtain from either;
for a one off payment of £2 via a debit card in your name. If you would like our help and advice, please either call us or request a call back and we will contact you to see how we may help you achieve your goals. We look forward to hearing from you.