Applying for a mortgage with Defaults showing on your credit history can make obtaining a new mortgage every difficult, most high street lenders will not allow defaults in the last 6 years. At Plus Financial solutions we have lenders that will accept defaults within certain parameters.
WHAT IS A DEFAULT?
A default notice is a formal letter which is usually sent after three to six missed payments. They can only be issued for debts that are regulated by the Consumer Credit Act. Essentially when relating to a debt it means that you have failed to make repayment according to the contract and the debt is now in default. A default will be noted on your credit file with a date of the default and information showing any outstanding balance or settlement date.
WHAT DEFAULTS WILL OUR LENDERS ACCEPT?
DEFAULTS WITHIN THE LAST 3 MONTHS:
No lenders available
DEFAULTS WITHIN LAST 2 YEARS:
Up to 85% of the property value, up to 5 defaults with no limit
DEFAULTS OVER 2 YEARS:
Up to 85% of the property value, unlimited defaults to any amount
DEFAULTS OVER 3 YEARS:
Up to 90% of the property value, unlimited defaults and amount
DEFAULTS OVER 4 YEARS:
Up to 95% of property value, no limits on amount or size