how can I get a mortgage (in the UK) with a default on my credit file?

Question

I didnt even know that I had a default. I've alwasy managed to get credit without a problem, and paid the majority of these off as my husband and I were looking to buy a house.
We finally found one (an ex-MOD house we were going to buy through a company - they were going to pay the deposit, legal fees, survey costs - fantastic!). we got approved for the mortgge, but when the application went through it came back with this default (about £2000 owing on a credit file, I have an agreement with them, it seems I missed a payment almost 3 years ago when I was moving and I didnt get a letter about the default. despite continuing with the agreement to pay the amount back, they wont remove it from my file).
can I get a mortgage anywhere?!?! with any company?!?!?!
we've got a baby on the way so are desperate to own a house before he/she is born.
I dont have the money to pay the company off in full as this will be going towards moving costs.

My problem is its not a CCJ but a default, so its not registered with the courts. I wrote to the company about 6 weeks ago, special deliver, outlining my case (ie not received default, still in agreement, paying amount off etc etc).
they say they dont need to show I've received the notice, I need to prove that I havent. I wasnt even living at the address! but they wont remove it.
Thing is, if the interest rate is higher, we cant afford a house anyway because of houe prices. we only had agreement for £117k anyway.
such a frigging nightmare!

Answer 1

I presume you had a CCJ put against your name?

You can still get a mortgage but the interest rate will be higher.

http://www.mortgages.co.uk/non-status-enquiry-form.asp

Answer 2

"They won't remove it from my file"? B*ll*cks. Make them remove it. This happened to me, but the default notice in my case was put on my file by the scum who run Liberata, the vile, incompetent morons who pay Housing Benefit for Southwark Council. They created a fictional overpayment of Housing Benefit after I had moved from the borough, and quite deliberately put through a court summons knowing I owed them nothing, and that I would not know what they were doing. As soon as I found out about it (when I was refused a bank loan) I simply filed a notice of appeal with the County Court, paid my £60.00 and proved that Liberata is run by vindictive, brainless, deeply inadequate people who get their dirty, malicious little thrills by making people's lives as difficult as they can. I didn't have to do that, though - that was just the fun part. All I had to do was show that I had not received the original paperwork or summons and thus had no chance to defend myself. The judgement was set aside and my credit rating cleared. I haven't heard a squeak out of the spineless scumbags since, because like all bullies they are cowards and won't attack if they think they'll meet a defence. Okay, lecture over. Don't pay an ambulance chaser, you can do all this yourself. Send me a message with an email address and I will be happy to send you all the paperwork I had to file and a step by step guide to what I did and how it all worked out. Best of luck.

Answer 3

Yes you can get a mortgage, there are companies who specialise in dealing with people with credit problems.
You will probably pay a higher rate of interest though.
Best bet is to go to a mortgage broker.

Answer 4

dnt even worry getting a morgage!!! a house isn't worth making an investment in on the minute. you would possibly want to attend untill the banks cool down and folk are spending lower back. dnt you watch the info about the recession????