Getting a new mortgage - default on credit file but high credit score?

s_armondi

Hi All,
One more takes the plunge... after months of following threads on here I've finally decided to sign up and post!
We are just about to move house, and are looking for an 85% mortgage (max 115k). Our earnings are over 40k, so we should qualify for that amount. All good so far - but we recently discovered a default on my credit file from an age old dispute with Abbey National (they merged two accounts, but omitted to transfer one DD over which resulted in the account going overdrawn by £178!). The default is market as satisfied, and we are currently challenging this as the correct procedure was not followed by Abbey (no letter etc), but in the meantime need to get a mortgage.
Everything else on my credit report is good - no missed/late payments, I pay my CC in full, no balances outstanding, current account in credit, only using a small %age of my available credit. I also obtained my experian credit score which comes in at 896, in the 'good' category.
The default is dated May 2006, and we got our current mortgage (RBS Offset) in 2007 so the default can't of been an issue then, but how are lenders likely to see it now post-credit crunch?
I spoke to a mortgage advisor who indicated it shouldn't be an issue, but I then spoke to someone from the Britannia call centre who said their computer system would automatically reject the application as the default is over £100! I'm keen to avoid applying for anything when I'm not sure of my chances of success as I don't want to litter my credit report with searches.
Does anyone here have any experiences/suggestions?

Many thanks,
SAM

VIGILANT22

No issue in 2007...different story in 2010, criteria has changed...........Speak to your existing lender.........

happybroker

the default will be an issue at 85% ltv with the vast majority of lenders unfortunately....speak with your existing lender but don't let them carry out a search/ score until you have had some good independant advice. Friends and family are the best place to start with getting a recommendation.

s_armondi

Thanks for the advice... obviously not what I wanted to hear but... !! Is it likely to still be an issue at 80% LTV?

VIGILANT22

It depends on the lender..regardless whether it is 80% or 85%.........

s_armondi

Hi All,
Just a bit of an update - so far Natwest approved us (no questions asked!) and Britannia have indicated that their underwriting team will approve us if we get referred!!

Regards,
SAM

herbiesjp

At under £250 for the default you should be fine.

Good luck!

bobbadog

I got a mortgage with Britannia last year, with a default on my credit file for £600. It will disappear this year, but it was very much on my credit report last year! Britannia were fine about it x