FTB, problem with default

defaultrm

Hi all,
My OH and I are FTB with 15% deposit. Recently I found a default on my credit report, which was registered by a mobile company back in Sep 2006. The outstanding blance is about 120 pounds and hasn't been settled yet (I don't even know I owe them money).
1. Does it affect our mortgage application? Does it help if I put it in dispute?

2. Is this default going to stay on my credit report for 6 years from the date it's settled?

Any advice would be appreciated.

bOingball

Hi There,

Well it would be best to talk to the mobile company if it's a mistake as they will be able to remove it.

If you owe them money, ring and pay it, but ask them if they will remove the default if you do pay it.

I'm unsure how long it will stay on your account, usually 4 years after being satisfied

Good Luck.

herbiesjp

It will do with most lenders.

With some lenders you will be ok and fit under their threshold.

defaultrm

bOingball wrote: »

Hi There,

Well it would be best to talk to the mobile company if it's a mistake as they will be able to remove it.

If you owe them money, ring and pay it, but ask them if they will remove the default if you do pay it.

I'm unsure how long it will stay on your account, usually 4 years after being satisfied

Good Luck.

Thanks for the advice.:beer:

defaultrm

herbiesjp wrote: »

It will do with most lenders.

With some lenders you will be ok and fit under their threshold.

herbiesjp,
Thank you so much for your help!

Funkygibbon

Also a default is on your credit file for 6 years from the defaulted date. I've had one disappear after 5 1/2 years and it still had an outstanding amount on it.

defaultrm

Funkygibbon wrote: »

Also a default is on your credit file for 6 years from the defaulted date. I've had one disappear after 5 1/2 years and it still had an outstanding amount on it.

Funkygibbon,
Thanks for the info. :beer:

Conrad

You need to run an approval in principle to be sure. Credit scoring will take into account your overall risk profile. Good luck. Some smalled Building Societies can be best for this sort of thing as they take a 'Human' common sense approach rather than a big Bank 'computer says no' approach.

herbiesjp

Conrad wrote: »

You need to run an approval in principle to be sure. .

Agreed - but only with a lender whose criteria you fit. Otherwise it would be a wasted search.

bOingball

Funkygibbon wrote: »

Also a default is on your credit file for 6 years from the defaulted date. I've had one disappear after 5 1/2 years and it still had an outstanding amount on it.

That was the case on my equifax report but the history it keeps went down to 4 years from Jan (well on mine it did) so it removed one that was about to come up to it's 6th year (doh! )

cheers
bOing