'Default' on experian credit file and mortgage with Nationwide going through! Help!

alibumblebee

Hi all,
I need some quick advice, I wish I hadn't seen this on a Sunday and I could ring the bank for some advice!
Basically my husband and I are first time buyers, we've found the perfect house and visited Halifax for a mortgage meeting and a broker for Countrywide. At both meetings the Halifax and Countrywide credit checked us both to give us a mortgage in principle.
The Halifax check was done there and then during the meeting, the lady we had the meeting with at the bank said our credit score has came in their category of "Grade A" meaning we couldn't of scored any higher.
Countrywide done a credit check on us too which came back a couple of days later and that was fine so they too gave us a mortgage in principle of upto £100,000.
We decided to go with Countrywide (best rates overall) and we've signed all the docs and its all in the process of going through, we've got our solicitor and everything is moving.
But, I've just looked on my experian credit report (for the first time - always used Equifax!) and an old account which I've paid off says "default" next to it?! My equifax report shows I am up to date and that the account has been settled.
Now I'm really frightened because I'm scared the mortgage is going to fall through because of this.
I remember saying to our broker at Countrywide after our credit check had came back when he said the bank needs to do further checks "Is that to make sure we have no defaults etc" and he said "No that would have been brought up in the original credit check, I mean checks into your employment etc".
Surely, if I was being given a default the creditor should of sent me a letter to warn me? There was a couple of late payments with this creditor but it was sorted very quickly and it dates back to 2009! Everything else on my report is fine and my husband has never had a late payment for anything in his life!
Will this cause the mortgage to fall through or would this have already been took into account of when the Halifax and Countrywide credit checked us?
I also can't understand why equifax says to quote:
Excellent

You have no defaults.

Oh dear majorly freaking out right now!
Thanks all x

Ps thought I'd add its a house of £115,000 with a deposit of £17,500 and we are FTB.

bigadaj

A late payment is a default so the file is correct. However late payments three years ago are unlikely to lead to a decline, what are your earnings as you will have a better chance of approval with a low multiple of salary.

alibumblebee

I thought a default and a late payment are different, I thought a default was much more severe than a late payment?
My husband earns 20k per year and I earn 18k.
Thanks

alibumblebee

Should I have had a letter warning me they were giving me a default?

alibumblebee

Sorry to ask another question but is an account marked as in default because a payment is late - different to having an account actually marked as 'default'?
Thanks

Simon_gloster

Halifax do a soft credit check in principle, this goes back 3 years. When the full app is done it goes back 6 years. Cases can flip fro A to an F on application. The AIP is worthless in the minority of cases.

If you have defaulted on credit, it means thrre he been consecutive missed payments and gone to status 8 ie in default. If default appears then thats not good.

Missed paymenta every now and then aren't great, but most of the time have no impact.

How much was it for, how much you borrowing and whats the purchase price?

alibumblebee

The default is for £410.
The house we are buying is £115,000 and we have a £17,500 deposit.
The broker from Countrywide also said our credit check that he sent away for came back absolutely fine. Is our application likely to be declined do you think?
Thank you

Simon_gloster

I just posted and it deleated!!!!

Having15-20% deposit would reduce worry a lot.

Halifax are lenient, but do decline on adverse. Only you, them and countrywide chap will know the outcome when you pay fees on full app.

90% with a default isnt available to sub prime lenders I dont think, so this is your only push.

Halifax are part of Lloyds BG. Therefore if the default is in their group, so be cautious if the default with one of their brands will be looked upon less favourably than if it was with RBS.

alibumblebee

Hi Simon,
My apologies, in my panic above I mentioned we got an AIP from the Halifax and Countrywide but I failed to mention we went through Countrywide in the end and they are processing our mortgage with Nationwide not Halifax. Sorry for that.
Will they look at us favourably that apart from that our credit histories are good and that my partners is squeaky clean? Also if they did have an issue with it would they offer us it in condition I paid the default balance or just decline us?
I wish I knew about this default, the company who it is with never sent me any overdue letters or notification of default, so I have emailed them requesting further information and the dates of letters they have sent to me.
Thanks