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Default Notices (or Notice of Default) are issued by lenders in the event that a borrower misses a payment on a regulated credit agreement such as a credit card or Personal Loan.
Here we explain Default Notices and the possible consequences and impact they can have on your credit rating, along with further information as to how we can help with a mortgage or remortgage if you have received a notice of default.
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So, as we touched upon during the introduction above, a Default Notice, or Notice of Default as they might sometimes be referred to as, are notices issued by lenders to borrowers where the borrower has missed a contractual repayment on a regulated credit agreement.
Regulated Credit Agreements include contractual arrangements such as:
In the event of a missed payment, under the provisions of the Consumer Credit Act, the lender will issue a Default Notice to the borrower, and register the appropriate information on the borrower's credit file.
A defaulted account is basically the regulated credit agreement account, such as a credit card account, where the contractual repayment has been missed, and a notice of default has been issued. For instance, if a borrower was to miss a payment on their credit card, the credit card company could issue a default notice to the borrower, and the borrowers' credit card account would be deemed as a defaulted account.
The consequences of receiving a notice of default letter and having a Default Notice registered against you can have a severe impact on your credit rating for years to come, as once registered, the detail remains on your file for six years after the defaulting on your credit account.
Many conventional mortgage lenders, especially those using credit-scoring systems to assess your eligibility for funding, may well automatically turn down your mortgage application if you have a default registered against you!
Because at Shire Direct, we specialise in the more demanding and specialist sector of the market place, we have developed a portfolio of lenders who will take a more pragmatic approach to borrowers who have experienced credit difficulties in the past, including credit defaults, county court judgements, or arrears. We understand that everything in life is not black and white, and all too often the door to mortgage funding is shut - well not so at Shire Direct!
We have the approach and skills to match your circumstances to lenders that will take a sympathetic approach, whatever your financial circumstances. We consider applications on an individual basis, and as professional brokers, we will place your requirements with lenders who look for reasons to provide you with borrowing facilities.
We can usually assist if you have received a Default Notice, as our portfolio of lenders include those who will ignore defaults altogether.
Our advisors will assess your requirements, and will usually be in a position to provide you with a rapid in principle decision. You'll find our service and approach to be friendly and professional. So why not give us a call, our professionally qualified mortgage advisors are available up to 10.00pm everyday on our Freephone line 08000 282 281, or why not contact us online anytime! We'd love to hear from you!
So, if you are considering buying a new home or remortgaging your existing one, and you are worried that any default notices you have received may adversely affect your chances of getting a mortgage or remortgage then please do not hesitate to contact us, as we may well be able to help!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
