Explanation of Default Letter for Mortgage Lender

stephi81

I am in the process of trying to obtain a mortgage to purchase my first home. My mortgage advisor is in talks with one of the well known high street banks, who appear to be considering offering me the mortgage but they have asked for a few things from me before giving me a decision...

They have asked for my payslips, recent p60, bank statements, and a letter explaining a (satisfied) default that I have on my credit file. All of these are fine apart from the letter explaining the default. I defaulted on the account in January 2007, for the grand sum of £91. The honest truth is I was a complete fool and simply didn't pay my bill, which resulted in the default eventually being added to my credit file. I fully accept I should have just paid the bill, the only excuse I can offer is foolish immaturity. I certainly wouldn't get myself into the same situation now.

Can anyone advise the best way to word my letter please? Will the mortgage lender check my explanation with the previous creditor (who I defaulted with)?? I realise I can't just say 'I was stupid' - but what other explanation can I give (that sounds better!) ?

I have worked hard to improve my credit over the last couple of years, I pay all my bills on time and I currently owe nothing in credit, and have no arrears of any kind on any account. My current account has not been overdrawn etc. Currently my credit score is 829. I have a fairly good size deposit to put down on the property (about 30%). Considering all of these factors, are the lenders still likely to turn me down because of the default on my account? As previously mentioned the default is marked as 'Satisfied' on my file (not sure if that makes a difference or not).

Any advice would be extremely appreciated as I really don't know what to put in this letter!? I would be crushed if it were to slip through my fingers at this stage... Although of course my own fault.

Thanks