Can I Re-Mortage with a good credit score+1 defaulted acc?

clairabell2024

Hi,

Back in June 2012 myself and partner tried to remortage our home to consolidate some debt and free a bit of money to start saving for our wedding.

We have plenty of equity in the property and all seemed fine- but the application was rejected due to my low credit score (unaware at the time). Therefore we decided to go home check my score and work on it.

It turned out it was an old credit card, which i had thought id paid off the whole balance months ago- but as it happens id left a £3 odd balance on there (presumed interest) and i had been charged a late fee upon late fee for non payment each month and resulted in a defaulted account for a total balance of £46! This was paid march 2012 time before we went to remortgage.

So i have been working on improving my score since and this week finally got in to the 'Good' Margin at 913 points (yay!) with 6 positive factors and 1 negative (the CC situation).

Finally my question is.......

Will i be able to remortgage now with my new score? Or will the defaulted account still affect my chances? I don't want to try and get rejected again and it have a subsequent bad affect on my score! Catch 22!!

Any views/advice would be appreciated!

:-)

kingstreet

When was the default registered?

If it still shows on your credit file, it will be a problem for some lenders. It's such a small amount, you should be ok if you are looking to borrow less than 75% of the value of the property.

The "scores" provided by credit reference agencies don't matter to lenders. They form their own internal score from the information they request from you.

A smaller, non-scoring building society would probably have offered you a mortgage at the time you found out about the default, but if you are rate-chasing you probably went to a credit scorer where the computer said "no."

clairabell2024

Hi Kingstreet, Thanks for the reply.

I can only seem to find the date the account was last updated (21/06/2012) but this is not the date the default occurred or atleast not the date of the late payments?

Whats a score chaser? I've not heard of that term before? Our mortgage is with Halifax- Were looking to remortgage for £10k our house value is £150k and our original mortage was for £105k- so like 76-77%. It's annoying me so, over £46!! (i have tried reporting the charge as i think it unaccpetable to charge a late penalty on interest and then further late charges on a late charge and when i rang the CC Co. to pay, they wrote it off saying it was there mistake!).

kingstreet

A rate-chaser is someone who is a "prime" customer looking for the best possible rate and overall costs and doesn't care which lender is providing it.

I' interested in the date the default was registered as it falls off your credit file automatically after six years.