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Worried about mortgage application because of past misdemeanours
penny_dreadful
Posts: 2 Newbie
Hello, I'm new to this so I hope someone out there could help me with my problem, at least I think it's a problem but I'm not sure.
I used to be a customer of Alliance and Leicester but I got into a small spot of bother when I closed my account down, because I wasn't aware that overdraft charges had been applied. It was an online account and by the time I had noticed £200 worth of charges had been applied, giving me a hefty overdraft.
A&L sent several letters threatening to default me, but in the end (I've checked my credit report) it seems they didn't. They did, however, say they were going to close my account and I had to repay the overdraft over a period of three months, coming to an arrangement with them.
My credit report is otherwise perfect and all of this took place in early 2008, so some time ago.
My problem though is that I'm about to apply for a mortgage with Alliance and Leicester and although my credit rating is all fine, I am really worried that they have some sort of 'blacklist' of customers and the fact that I was a bad personal banking customer may mean I'm automatically going to be blocked from getting the mortgage. Does anyone know if this is the case? I would phone them and ask but I don't want them to know that I may have been a bad customer previously.
Do you know if the fact I had my current account closed down five years ago is likely to prevent me from getting a mortgage with the bank, or are they very different divisions? I also have a bank account with Abbey which I have managed fine, and I know these are now part of the same company, so would this work in my favour?
I'm so worried, I don't want to apply unless I'm confident it will be approved otherwise I lose my valuation fee of £400.
I used to be a customer of Alliance and Leicester but I got into a small spot of bother when I closed my account down, because I wasn't aware that overdraft charges had been applied. It was an online account and by the time I had noticed £200 worth of charges had been applied, giving me a hefty overdraft.
A&L sent several letters threatening to default me, but in the end (I've checked my credit report) it seems they didn't. They did, however, say they were going to close my account and I had to repay the overdraft over a period of three months, coming to an arrangement with them.
My credit report is otherwise perfect and all of this took place in early 2008, so some time ago.
My problem though is that I'm about to apply for a mortgage with Alliance and Leicester and although my credit rating is all fine, I am really worried that they have some sort of 'blacklist' of customers and the fact that I was a bad personal banking customer may mean I'm automatically going to be blocked from getting the mortgage. Does anyone know if this is the case? I would phone them and ask but I don't want them to know that I may have been a bad customer previously.
Do you know if the fact I had my current account closed down five years ago is likely to prevent me from getting a mortgage with the bank, or are they very different divisions? I also have a bank account with Abbey which I have managed fine, and I know these are now part of the same company, so would this work in my favour?
I'm so worried, I don't want to apply unless I'm confident it will be approved otherwise I lose my valuation fee of £400.
0
Comments
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They should be able to check this at AIP stage. Although one large lender had a problem with a system for checking repo's, they could check repos unless it was thier owwn.
I would not worry, although even if you get an AIP it can still be declined."Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00
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