Applying for a mortgage with missed mortgage payments showing on your credit history can make obtaining a new mortgage every difficult, most high street lenders will not allow missed mortgage payments in the last 2 years minimum. At Plus Financial solutions we have lenders that will accept mortgage arrears within certain parameters.
What are mortgage arrears?
An account is said to be in arrears if the debt, liability, or obligation expected is overdue. If one or more payments have been missed in transactions where regular payments are contractually required, such as a mortgage. A missed mortgage payment will show as a 1 on your credit report. Missed 2 an a row and it will show as a 2, and so on. Any mortgage arrears within the last 12 months will make it difficult to find a new lender.
What level of mortgage arrears will lenders accept?
Arrears within the last 6 months:
No lenders available
Arrears within the last 12 months:
Up to 85% of the property value, up to 1 missed payment
Arrears within the last 2 years:
Up to 85% of the property value with up to a status 2 (2 missed payments in a row). Or up to 75% of the property value with unlimited arrears
Arrears over 3 years ago:
Up to 90% of the property value, unlimited arrears
CCJ’s over 4 years:
Up to 95% of property value, unlimited arrears
Contact us today to see how we can help you secure a mortgage with defaults!