Concern about application for RBS Help To Buy Mortgage

charitygirl

Hiya,

My husband and I are currently in the process of buying the house we are renting from the Landlord - it isn't ideal but only way we'll ever get on the ladder in the area we live.

Some basics -

Property - £241,650
Deposit - Just over 5% (and enough contingency for fees etc)
My salary - £40k pa
Husbands salary - £60k pa

We're making an application through RBS Help To Buy. We went in to chat to them and we passed affordability and eligibility criteria with no worries.

My big concern is this - in 2011 I had an issue with Scottish Power - I switch supplier and for months asked for a final bill or to pay over the phone but they wouldn't give me one or accept my final reading. I finally managed to pay an amount of £286 over the phone to close the account.

When I started this process, I got our credit files and lo and behold there is a default (albeit marked as settled!) on my account from 2011 from Scottish Power. I phoned/wrote and emailed to them to get them to remove this as they have evidence of my calls (but not recorded!) but they say they sent the final bill which went unpaid. They didn't. They really didn't.

I have since added a Notice of Correction to my file.

I mentioned this to RBS when we went in and he said it wouldn't be an issue - as a couple we are a good bet, great salaries solid jobs, savings etc but I've been reading stuff on here and getting myself into a total panic.

The final application is on Wednesday next week which is when I presume final credit checks are done.

Help?!

brettcta

So long as you've mentioned it and they're happy with it, I wouldn't be getting too worried. I had some reservations as to whether or not ours would go through and as helpful as this forum is, it's like getting a spot, googling it and then worrying it might be skin cancer

charitygirl

Thanks so much for your response. I'm getting myself into a right old panic!

I only worried because the guy didn't actually put anything into a computer he just said he thought it'd be fine - I worry when we get to credit check/underwriters etc we may have an issue.

And yes, I could kill Scottish Power.

kingstreet

On which version(s) of your credit file is it visible?

I would be nowhere near as confident as the employee suggesting a 95% application with a default will "not be an issue."

Even if it is satisfied, it is only two years old.

You need to get a full agreement in principle, fast.

charitygirl

Hi,

It is on Experian but no others - apprently Scottish Power are one of very few energy companies that even put on files!

Like I said I recognise that it shows as a default, but I was trying to pay weekly over the phone for 6 months. Short of sending them a wedge of tenners in the post I don't know what else I could have done. There is nothing else, not even a blemish on the rest of either of our files.

We asked about Agreement in Principle at that stage and the Mortgage person at RBS said they don't do them, but gave us a letter which was everything short of an AIP about the fact they would lend etc. The next stage is the full application which I'll be doing next Wednesday over the phone. The person at RBS took a look at all of our documents (payslips, 3 months bank statements and ID).

What else can I do?

kingstreet

Hope they only use Equifax and they may not see it.

charitygirl

Is that likely? I was under the impression that most of the big lenders used Experian.

Are we definitely saying that if they see it, even with notice of correction and otherwise unblemished history and the fact that we want to borrow far less than they will lend (offered to lend us £475k) this is dead in the water because Scottish Power are in fact ******?!

Blimey that's depressing.

chanz4

rbs use Equifax a lot, they did on my account and credit card

charitygirl

Well that is slightly more promising news - although I guess they may still use both!