Any advice welcome please...

puzzledandperplexed

My husband bought our house 10 years ago (5 years before we met) and the mortgage has just remained in his name. We are looking to re-mortgage now and add £20k on for an extension. My husband has offered for me to go on the new mortgage but I am worried that due to my past and financial situation this may create problems.

Here are the details:
We currently owe £70000 on the mortgage and the house as it is has been valued at £140000. we would therefore in effect be borrowing the £70000 we owe and the additional £20000 for the extension totalling £90000.

My husband earns £55k per year and has an excellent credit rating. I earn £28k per year and have a default from July 2002 (i missed a months mobile phone bill when i finished uni at age 21). This was settled the month after by my dad (it was only £70!). Since then I have had no missed payments etc but i do use my authorised overdraft most months due to it being a v low interest rate and this tends to fluctuate to no more then £1000 overdrawn (below my limit of £1500). I also owe £200 on one credit card which has a limit of £6500 (this limit has been raised automatically 3 times in the past 2 years by barclaycard not myself) and I also owe £1200 on another credit card which has a limit of £2000.

I don't want to jeopadise getting a good interest rate by me applying with my husband but he seems to think I'm panicking for nothing?

Thanks for taking the time to read and hopefully respond?

GMS

A default from 2002 will have dropped off your credit file now.

Using an overdraft within limits will generally be ok.

Shouldnt have too much to worry about

puzzledandperplexed

Thanks for your reply. After i paid the mobile phone default i actually continued with the contract for a further number of years (thankfully without any problems!) and when i checked my credit record in 2010 i could actually still see the defualt on my report as i didn't end the phone contract until 2008.

Will it not count however?

GMS

A satisfied default for £70 should hopefully not cause too many issues.

If you are concerned either use a broker to get an application pre approved or speak to any lender you are proposing to use directly to see what they think.