small default on credit file and looking for mortgage

aliclarke86

Good day to everyone. I am new to this site but have often visited and found invaluable information so thought this would be a great place to seek advice myself.

Me and my partner are starting to look into buying property. We have currently £14k to our name and have a household income of just shy of £40k per year. We where looking in the region of £140k property.

We have been to see a mortgage advisor and although going through all the checks fine and being given a "mortgage promise" it was noted that there was something on my file that I should look into.

So on further inspection I have found a default has been placed on my account by a telicoms company over a settled debt of £38 pounds. This has literally happened in the last month.

Now, our mortgage advisor did say that it would probably be something along those lines and if we could find out exactly what it is then we would be able to pass the information on to the underwriter who should not see this as a problem.

I am also in talking with said company about having it removed but I'm not holding out much hope on that front.

If anyone has any thoughts I would be very great full as I don't want to go out and scar my report any further with declined mortgage applications.

Many thanks

Ali

ACG

Depends on the date of the default, if it really is in the last month then it could be an issue.

Some lenders do ignore defaults under £100-150 anyway and some ignore them from telecoms companies also.

Who is the lender your going with?

aliclarke86

Well it was in late October and I will accept that I may have made a wrong decision that has caused this.

I stopped a direct debit before a final payment had been taken (inadvertently) just before I moved house and as I did not hold an account with them any longer did not update any contact details leading to no communications reaching me. It was only when I checked my credit report through an online site that I noticed the arrears. I then imediatly contacted them to settle the debt.

We spoke with lloyds as I have been a customer withem for years and held credit cards and loans with them that have never had missed payments. I thought that this could work in our favour.

ACG

There is no real relationship in banking anymore. Everyone is treated equally.

You may struggle, thats not to say its impossible but it will come down to the rest of the credit score really. It would be ideal if you could let it date to around6 months old but it may be possible to get it through now.

I think you need to get your credit reports down to a good broker and let them have a look over everything.

aliclarke86

Thanks for your replies I appreciate it a lot. I think our plan is to try and get a bit more money behind us for now which will give a little time for this ugly D on my file to age... apart from that I only have 2 late payments from 5 and a half years ago so will also let them slide off my report.

Ali

ACG

Those late payments should not be an issue, especially if they will have dropped off.

Time will be the greatest healer for this. But i think its a case of doing it right first time to avoid numerous searches on your credit report once the time does come.

kingstreet

I've been out this afternoon, but not much to add to what ACG has said.

If I read this right, the OP is here on my recommendation from another site.