How will this affect a mortgage app?

CMHunt

I got a call from RBS last week saying that I had defaulted on my current account and owed them £530. This was quite a surprise as I haven't touched my RBS account for about 5 years.

It turns out that my account was changed to a royalties gold account about 2 years ago and therefore a £12 monthly charge (and subsequent non payment fees) have been charged to the account despite the account being dormant for several years. Also RBS only contacted me once it had defaulted.

I am contesting this as I definitely never asked for my account to be 'upgraded' and have had no contact with RBS for several years.

However, if things don't go my way I will have a default on my credit record

We are looking to move to a larger house later this year and will therefore require a larger mortgage.My question is how will this affect getting a new mortgage.

I have previously had a perfect credit record:

- Mortgage paid on time for entire time we have had it (2 years)
- About 2 credit cards at any one time either paid off in full or at least the minimum payment
- A couple of loans (for sofa and home moving costs) now payed off and never missed a payment
- Bills etc always paid on time

wardlaw

Judging by what you have said, it appears to be the Banks error

You should make an official complaint to their complance oficer and if that does not help write to the banking ombudsman

With regard to the default, there are numerous lender who will entertain them and others who totally ignore them

CMHunt

So no need to worry too much about it then? My current mortgage is with HSBC - If I decided to stay with them will they still give me a new mortgage. Have had a very good relationship with them in the past

Mr_helpful

I would contact the bank. They can remove any default, though they may not have lodged it yet but you also want them to remove details of arrears on this account, as its not just the fact it says "default" that affects you. Its also that it looks like you are a bad payer.

MortgageMamma

Its their error and I'd be suprised if they even contested it. Insist the default is dropped and your credit record is returned to its original state

also ask them, what gave them the authority to swap your dormant account to a fee charging account without your permission? Dodgy B+stards