Missed Payments

misstheo

Just looking for some advice about the following issue.

Me and my partner are FTB with a 10% Deposit
Our Combined Income is £74K and based on the mortgage calculators our income is more than enough to borrow the amount we need.

I recently ordered a copy of my credit report and was horrified about an old dormant bank account that had racked up bank charges.

As the account was registered to an address I hadn't lived at for more than 4 years I wasn't aware of the charges (yes i know stupid mistake)
After some investigation I discovered that an old direct debit has tried to come out of the account and they charged me for it even though I hadn't used the account for 4 years. This has had an affect on my Equifax credit report as it's showing 6 on the missed payments up to may 2011 this year even though the charge was from 2008!!!

I have since paid off the charges outstanding which was for £125 and closed the account. It's linked to my old address not my current one.

Now i'm worried this will affect any future mortgage applications because all my other credit is good. I'm consitently fretting about this and kicking myself for making such a stupid mistake.

Any advice?

DannyboyMidlands

You have a good combined salary so save more deposit and apply only in your partners name. You'll get a much better interest rate too.

misstheo

Thanks for your advice.

We tried with just my partner but his income is £8000 too short to go it alone.

A broker suggested Halifax as they do a soft search we would know straight away if we pass the credit check. If all else fails I guess we can save for another year. I was just wondering if there were any near prime lenders who may consider us then remortgage for a better rate after the initial period. Our rent is actually more that a mortgage so we are not too worried about interest rates.