Default letter on exceeding credit limit. Will this affect my mortgage application?

Tomiko_2

Hi all, I need some advice. I have been travelling on business and forgotten my corporate card PIN number therefore used my personal card to pay for travel and expenses. I have been reducing my credit limit on my credit card the last few months from £9k to £500. Issue is I went passed my credit limit by about £60 and had a default notice come through from BArclaycard. Payment is not due till end of the month but I've already cleared the balance a few days ago. I am currently in the process of applying a mortgage and the valuation is tomorrow. Will this impact mortgage decision? Am so worried! We passed on a credit pass A so no documents were requested from Halifax, and now I am worried a silly mistake will mess the whole thing up. I've always paid my balance in full and will contact BArclaycard tomorrow to request removal of default. I can only try I guess.

Senior_Paper_Monitor

They use the word 'default' in the advice letter, but in credit report terms that is not accurate.

What will probably show on your credit report (next month) is a '1' - if that is only blemish shouldn't be a problem in most cases.

ACG

at the end of August/beginning of september was you under or over?

When i worked for RBS credit cards they updated the credit report either on the last day of the month or first day (i forget which), so if you were over when the reports were updated then it depending on the lender and the LTV it MAY have an effect.

Tomiko_2

Hi senior, It was a default sum notice. ACG,yes I checked my credit report and It has not been updated yet. I was over at end Aug and cleared off the balance last Saturday. I got the letter through today, but this was dated 3 Sept. We have requested a 15% deposit with Halifax and have an AIP.Now just awaiting valuation results (tomorrow) and then final decision.

nottoolate

default sum notice is not the same as a default notice on your credit file

Dave_the_Ginger_Cat

You won't show as status 1 as you were not in arrears. The credit limit and balance are published and you are in default of your agreement (by being overllimit) but this is not a default notice which terminates your credit agreement - you would need to be overlimit for a sustained period for this to take place.

It rather depends on how the Halifax view a £60 overlimit. It also needs to be taken in context of the limit. Against a £100 limit it would be very bad - against £10k less so.