Default on credit rating

ashford1

I spotted this thread and wanted some general advice. I am hoping to get a mortgage with a 15% deposit and things looked promising until I realised I had a default on my credit rating. This was a debt incurred for an OU course which I paid in full once I realised this was outstanding. Due to a change of address I did not receive my mail at the time the debt was due. I have written to the OU with their letter confirming the debt has been paid but have been told by my mortgage broker that this debt could still stay on my rating for up to six years.

Any advice would be appreciated.

Andybez38

A default will indeed stay on your credit record for six years. Doesnt mean to say you wont be offered a mortgage but will looked on less favourably. The lender might offer you a mortgage at a higher rate.

ashford1

Many thanks. My mortgage broker did say that the OU could agree to put a marker on my credit rating saying the debt had been cleared. Is this usual?

FraudBuster

More information here:

http://www.moneysavingexpert.com/banking/credit-rating-credit-score

happybroker

how much is the default for, when was it registered and how long ago did to settle it?

ashford1

I paid a total debt of approx. £460 but the default shows £50?? I had a letter from them confirming debt totally paid so unsure what £50 is for. It was registered just less than a year ago.

happybroker

you have a good chance of high street lending with this but I would suggest that taking advice from a quality whole of market broker could save you much time and leg work.

Walking up and down the high street having searches done and being unsuccesful could do you more harm than good so be carefull. All the best with it

ashford1

happybroker wrote: »

you have a good chance of high street lending with this but I would suggest that taking advice from a quality whole of market broker could save you much time and leg work.

Walking up and down the high street having searches done and being unsuccesful could do you more harm than good so be carefull. All the best with it

Thanks for that. I feel I am in with a chance now it was so worrying.