mortgage statement - defaultOur clients had been living and renting a property together for 2 ½ years paying £800 per month. They had accumulated a deposit of £20,000 through savings and a small inheritance.

Both have been in long term employment (In excess of 10 years each) with no regular credit commitments so were in a good position to proceed when buying a property. Or so they thought ?


Five years ago one of our clients had missed some payments on a catalogue totalling £331. Our client had contacted the catalogue company to pay the arrears and had made regular payments to pay off the outstanding debt some 4 years ago. The catalogue company had not included in the debt a late payment levy totalling £414 which they registered as a default on the account in July 2016 which our client wasn’t aware of until checking their Clearscore credit file after being turned down for a mortgage by their Bank (Barclays)


Our clients were recommended to Manchester Mortgages by an existing client whose mortgage we had arranged six months earlier who had been turned down by their bank NatWest.

The adviser was able to assess the clients full circumstances including the reasons for the late payments and due to their knowledge of how lenders credit score applications were able to present the case to a high street lender (The Halifax) who accepted the application and a full mortgage offer has now been issued.

This was done by placing the applicant who had no credit problems as applicant 1 even though they were earning less money than the applicant who had the default registered against them. The default was declared to the lender so they were fully aware of both clients situation.

happy young familyThe reason is that some lenders use the information provided in respect of applicant 1 as the main focus of the credit scoring checks.


The clients have now moved into their first property and are paying £50 per month less in mortgage payments than in rent. The default registered will remain on the clients credit file until July 2022. However, the lender (The Halifax) will always offer the client a new mortgage product as and when their current deal expires and the impact of the default as time passes by will reduce.

It is always advisable that people check their credit profile by logging into and registering with sites such as or Clearscore (see link above) and always speak with any lender bank, credit card company or loan provider if they are having difficulties making payments.

If you are having difficulty obtaining a mortgage contact Manchester Mortgages on 0161 706 0242 and one of our experienced advisers will be more than happy to discuss your situation and try to assist.

If you’ve defaulted on a previous mortgage and are looking to arrange a new one visit our page here.