We had an interesting conversation with a potential customer earlier this week. The customer had done some of their own research told us of a lender they had found who would ignore their Default and asked if there were any others.
This post is not going to be a list of lenders, more a case of how limiting yourself to those lenders who do ignore Defaults may not be the best idea. I thought the conversation with the customer would make a good post as it may help others.
The lady had a mobile phone Default and had found a lender who ignored communication Defaults. She wanted to know if there were any other lenders who ignored mobile phone defaults – which there are one or 2 others. In theory this sounds like a good route to take when doing the research.
The research she was doing whilst not bad in theory it was also a little flawed. The default she had was quite small (around £150). The flaw in her plan is that limiting the research to lenders who ignore mobile phone defaults limits her options and straight away she is discounting about 90% to 95% of mortgage lenders.
Alternatives to ignoring phone Defaults
There are lenders who will ignore defaults under a certain value (which can vary from £100-500 depending on the lender). By including lenders who ignore small defaults, that automatically gives us another 2 or 3 lenders who may consider her application. However, even that has its own flaws.
We may also have lenders who can (can being the key word), accept or will consider applications with Defaults of certain types/amounts. The difference here is that whilst those lenders can accept certain types of Defaults, it is usually down to credit scoring or underwriters discretion and is not the same as being ignored.
What do we do?
We have access to around 80 lenders, we include all of these lenders at the initial stage and then we filter them down as we do the research. Straight away we are starting with a bigger pool of lenders rather than trying one lender here and there who will ignore the defaults. We have professional systems we pay for to help with that in addition we have 10 years experience to call on in order to find the best products for your circumstances.
Because we tend to specialise in the bad credit mortgage market, we also have built up our own database of mortgage lenders criteria and quirks, things that we have learnt over the years but may not necessarily be published criteria. All of this gives us that little something extra when reviewing your circumstances.
Next steps for Mortgages with Defaults
Get in touch with us. There is no list of lenders on this page, the reason for that is criteria and products change over time, more so at the minute than ever before due to Covid with lenders changing criteria and products almost weekly.
We can have a chat and discuss your potential options and how we can move forward together.