Will leaving the EU affect my ability to get a mortgage?

Dear James,

I have just had a default added to my credit report from a Spanish mortgage I had.  Now that we are no longer in the EU are they allowed to do this and will it be on my file for six years?  Is this going to impact my chances of getting a mortgage in the UK now?

 

Clare, Milton Keynes

Dear Clare,

While the UK has voted for Brexit it’s likely to be at least a couple of years before we actually leave the EU.  Generally, credit report information is not shared across national borders, but there are arrangements to enable a limited amount of data sharing between certain countries where cross-border lending is commonplace, such as Brits investing in the Spanish property market - especially where the lender concerned operates in both jurisdictions.

A default is never good news for credit scores and this record is likely to have serious consequences on any future mortgage applications you make.  The default will remain on your report for six years, but if you do disagree with it or anything else recorded on your Experian Credit Report then please let us know.  It could certainly help a future mortgage application if the default has been repaid and marked as ‘satisfied’.

Also, if there was a good reason for the default, you can add a note to your credit report to explain any mitigating circumstances, such as losing your job. As your application is likely to be classed as ‘non-standard’ it might be useful finding an independent, whole-of-market mortgage broker who will review your financial circumstances and your credit history and then help you choose a mortgage deal you’re likely to be accepted for. (January 2017)

James
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