Mortgage applications are commonly declined if the applicant(s) has defaults on their file. The high street lenders are particularly strict in this area, but with defaults that are 5 years old, your application stands a far higher chance of success.
Our advisers are specialists in helping people with bad credit which includes items such as CCJs, bankruptcies, and defaults both paid and unpaid.
They work with a range of nationwide lenders prepared to offer mortgages with 5 old defaults. They can give you the advice you need right now, plus support in submitting your application into the right lender.
Can I get a mortgage with a default from 5 years ago?
There’s no getting around it, but mortgage lenders do take defaults on credit files very seriously. Defaults can stay on your credit file for 6 years, and it could affect your ability to get a mortgage.
However, it’s worth noting that our advisers have access to some specialist lenders who will actually ignore defaults from over 3 years ago.
Plus, after 6 years the default can be removed from your credit file. Even if you haven’t paid it, it can still be removed at this point from the date of default. The organisation you borrowed money from, won’t be able to re-register it after this point.
This means that the majority of people our advisers talk to can get a mortgage with a default from 5 years ago, even if it hasn’t been paid, settled, or satisfied.
What we do ask though, is that you review your credit file to see if the default has been removed or satisfied before making a mortgage application. Our advisers can help you to do that, before finding the best lender to suit your circumstances.
I have unpaid defaults from 5 years ago
For a wider range of mortgage options, try to get the defaults paid off. Also declare them to our advisers, because they won’t submit your application to a lender unless they are confident that the application will be accepted.
Enter the default on your application, as you don’t want to not disclose anything to the lender that they will find out in the future, invalidating any offer in principal you might get.
Unsettled and unpaid defaults, even those from 5 years ago, will make you more of a risk to lenders. If you can get them paid off and settled before the application, it will put you in a far better position.
Many high street mortgage lenders will accept some form of adverse or bad credit, but with defaults of 5 years old, it’s probably going to be a specialist lender that our advisers recommend.
I have settled and satisfied defaults from 5 years ago
Getting a mortgage with satisfied and paid defaults can give you a wider range of choice, but even if they have been paid, all that does is improve your credit score. Some of the specialist lenders our advisers work with might not even run credit scoring criteria anyway.
Any mortgage application will be assessed on risk, and lenders offering mortgages to those with defaults tend to look at when the default was registered, rather than it being paid off.
Getting a mortgage with a 5 year old default
Getting a mortgage with a 5 year old default will depend on the criteria set out by the lender, plus your individual financial circumstances.
The specialist lenders that our advisers have access to offer mortgages to applicants with defaults and bad credit. It’s their expertise and area of business.
To get started, there are a few things that you can do with the support of an adviser. We recommend that you:
- Get a report of your up to date credit file.
- Contact our advisers.
- Take their advice on what reporting and detail is needed on an application.
- They will develop the application with you and submit it to a specialist lender.
Start your enquiry and application now. Call our friendly team giving an outline of your default history and they will arrange a call back from one of our advisers as soon as possible.
Is it easy getting a mortgage with a 5 year old default?
Since the credit crunch and recession, the UK has seen an increase in lenders prepared to offer mortgages to those with bad credit and defaults. There are now mortgage products on the market which aren’t as strict in terms of qualifying criteria.
But that doesn’t mean it’s an easy process.
There will be a lot of work involved in examining your credit history, financial records, and ability to commit to monthly mortgage repayments.
Once that information is all up together, our adviser will then use his or her expertise to submit the application to a lender most suited to your situation.
That’s why using a specialist is so important, because different lenders have different criteria and work in different ways. There is no one size fits all approach to mortgages where defaults (paid or settled) are involved.
What to do next
With years of experience in helping to place bad credit mortgages and applications where defaults are on record, our advisers are expertly placed to offer you the best route.
To find out how our advisers can help you, call us today or complete an enquiry form for a call back.