Can You Still Get a Mortgage With Defaults?
If you’ve skipped a loan payment or disregarded a debt, you may be one of the thousands of people who have a default on their credit record. Defaults on a credit file are one of the most prevalent reasons for many lenders to refuse a mortgage application, particularly on the high street, where candidates with a clean credit history are typically approved. Let’s find out more about defaults so you know where you stand.
Can I get a mortgage with a default?
Put it simply, yes. However, compared to those with a clean credit record, your mortgage rates will likely be much higher. However, seeking advice from a mortgage adviser will help you get the best rates as well as take some of the hard work out.
Are some defaults more severe than others?
Yes, it all depends on what payments you’ve missed and for how long as well as the amount outstanding. For example, accidentally forgetting to pay your mobile phone contract is much less serious than consistently missing mortgage repayments.
How long does a default stay on my credit file?
A default, no matter how trivial, will stay on your credit file for six years. This doesn’t mean you’ll be refused by lenders, but it will make it much harder to apply for larger borrowing such as a mortgage or hefty loan.
How soon after a default can I get a mortgage?
As mentioned above, after six years the default will no longer be on your credit report, meaning you can begin repairing any damages and build your credit score back up. So, while you may be approved after six years, it might be a good idea to work on your credit rating.
Can I get a mortgage with a satisfied default?
Yes you can. Lenders won’t necessarily take your defaults and refuse you a mortgage because you’ve made a small mistake. Again, depending on the severity of your defaults, you still have just as much of a chance at being approved for a mortgage. So, if your defaults are minor, you shouldn’t have anything to worry about.
How much can I borrow if I have defaults?
In general, adverse credit mortgage lenders are more stringent in their affordability calculations than traditional lenders. If you have a good credit