Chances of obtaining mortgage with wrongly imposed default

southernst

Hi - hope someone can give me some advice,

I am about to try and get a mortgage for £110000 - 85% LTV.
Credit rating check with Experian came back Excellent and with Callcredit Good.
However, with Equifax I had a default logged against me in Aug 2012 from a mobile phone retailer for £33. This only came to light when I applied for a mortgage in Aug 2012, and was told there was adverse on my Equifax file.
The problem was that I had cancelled a previous contract with the mobile company in Jan 12, and written to tell them, but they had continued to seek payment from me, sending their communications to a previous address. Unbeknown to me, six months arrears built up and then a default. I contacted them immediately an settled the account, but they claimed they had received no instruction from me and would not remove the default.
Would me issuing a notice of correction be worthwhile?

Other than this, I have a clean credit record with no missed payments.
My salary is £40k, and I have £4000 left on a personal loan with 17 months to pay. Credit card balance is £300.

Do I have any prospect of being accepted for a mortgage?
I am going to see a mortgage advisor on Monday

Thanks in advance for any advice

holly_hobby

I don't think you will have too much issue given the amount in question and the LTV and an otherwise pristine credit history. Take to your appointment, confirmation and of why the small default occurred, and proof from the provider that you have settled the account in full.

If this is a Vodafone account, it may be beneficial to know there is a super helpful guy who responds on the board, and has sorted out a couple of similar issues, in having dubious/inaccurate/unfair defaults removed/corrected (although I should of course say that each case is very much judged on its own merit).

I would also certainly have a notice of advice put on your CR, which means that the lender upon seeing the default and notice, should enquire from you the basis and reason for the default and notice.

Your mge broker wil guide .

Hope this helps

Holly x

amnblog

There are now lending sources that will ignore small defaults from mobile companies.

Good news given that 50% of the defaults we see on files come from mobile contracts.

PAYG is the way to go to avoid them.

Vodafone

Hi southernst,

If this matter relates to an account with us could you email me with your details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it'll take you to the Contact us form on our website. To make sure it reaches me could you also quote the code WRT135 - MSE in the subject line?

Once sent you'll receive an automated reply with a reference number. Could you update the thread with this and I'll get back to you as soon as possible?

Kind regards,

Lee

Web Relations

Vodafone UK

mattsday

Similar situation here, think I'm about to be declined a mortgage (no news, but they've refunded me the valuation fee which doesn't look good...) over a £41.50 (settled) default with T-Mobile from my old house, filed in April 2012 (although I moved out in 2010).

Although I felt I have a case, the thought of going through solicitors etc is too stressful, so I just paid it off. In doing so, I seem to have taken liability for it.

Amnblog - do you have any more info on these lending sources? Having an idea would save me a LOT of stress trying to fix this horrible situation.

holly_hobby

If you didnt declare the default at outset, you've probably been declined on "non-disclosure", rather than the details of the default itself, particularly when considering the source, and amount involved.

If this is the only blip, and you have a valid basis of why it was improperly registered (and satisfied), you don't need an adverse credit lender, but you do need a broker to prelimarly place this with their lender BDMs/contacts (saving further failed applications and what will be mounting credit searches, which will further weaken your credit score,

Hope this helps

Holly

jojo9239

mattsday wrote: »

Similar situation here, think I'm about to be declined a mortgage (no news, but they've refunded me the valuation fee which doesn't look good...) over a £41.50 (settled) default with T-Mobile from my old house, filed in April 2012 (although I moved out in 2010).

Although I felt I have a case, the thought of going through solicitors etc is too stressful, so I just paid it off. In doing so, I seem to have taken liability for it.

Amnblog - do you have any more info on these lending sources? Having an idea would save me a LOT of stress trying to fix this horrible situation.

Ive just had mine removed! Write to them contesting it! x