£72 Default. Will it effect a mortgage application

buggle13

Hello,

Me and my OH are looking at buying our first home.

Upon checking out credit ratings one is 'good' and the other is 'poor'.

There is a £72 default on a old account with HSBC when we were students. (We forgot about this account and thought it was closed.)

For such a small amount will it still have a effect on a mortgage application? Our combined income is over £40k and we are looking for a 80% LTV mortgage.

We have contacted HSBC and are going to pay the £72 so the default should show as settled. Is there anyway of removing it?

Thank you for any advice!

Dave_Ham

No way of removing it I am afraid. How long ago was it?

This will stay on your credit report for 6 years, although it is absolutely the right thing to satisfy it.

I would imagine given it being a joint application, assumed date of default, small value and assumed more recent good behaviour you should be able to mitigate this.

I would suggest you look at finding a broker though, as you may end up using a building society as they tend to be more flexible on historic, adverse credit.

All the best...

buggle13

Thank you for the info. The default was 10 months ago.

Hoping it does not cause too much bother over a trivial amount.