A newbie in crisis...

LouiseDorman

Ok before you laugh at just how anxious I am about £98.90... can I say this is a new discovery, and threatening a successful co-ownership application for my first home.

The story goes...
In September 2009 I decided to move to Belfast to live while going to university, it lasted all of 6 weeks before I moved back home. That was one drama where I had arranged for someone to take my tenancy over, but they ended up squatting.... and I paid the full years rent. It was bad, but with my parents as guarantors, I had to just do it and not fight over it. While there we took out VirginMedia TV and broadband, but I had moved out by day 11, and after unsuccessfully trying to cancel the policy by telephone I posted a letter. Thought nothing more of it until Jan 2010 when i noticed I was still getting charged. I called them up, and they where no help. I said, cancel the account, because I am cancelling the direct debit. Which I did (I know, stupid now, but I was 19!! and a broke nursing student). I heard nothing more from them, so I assumed I resolved it.
I thought the whole debacle was over. Until... I applied for my credit reports from Experian and Equifax this week, in preparation for applying for a mortgage/ co ownership. I discovered that not only had I this as a default recorded on my account, but it single handedly seems to have dropped my credit score to 253(!!!!).
After literally 4 hours of back and forth of trying to figure out how much I owe, to who, and how to get this defualt as not only recorded satisfied, but just darn right resolved, I am no further foward.

Can someone please help?
Is there anyway I can pay this debt, resolve this default, and still proceed with this co-ownership, without waiting a year???


Thanks guys

Tixy

If you pay off the default then it will be marked as satisified on your credit report - whether that will be sufficient for the mortgage lender to accept your application is another matter.

It is possible to get a mortgage with an old satisfied default on your credit file, but its quite likely you will not be accepted by all lenders or at the most competitive rates.

Is the entry on your credit file still in the name of virgin (not a debt collector)?
If so then I would write to Virgin and state that you were unaware of the debt until today as you had moved address and that you would like to arrange to repay it asap so would they please let you know how much is outstanding and who you should pay.
You could ask them to consider removing the default entry as a goodwill gesture once you have paid, its fairly unlikely but occasionally people do report of phone providers agreeing to do so.

If the mortgage company you were intending to approach won't accept you for a mortgage it might be worth speaking to a mortgage broker as they may be able to suggest which lenders would consider lending to you (once it has been marked as settled on your file).

LouiseDorman

Thanks for your reply...

The mortgage broker doesnt think it will be an issue with the mortgage, as the balance is below £100-150, it is co-ownership.

Co ownership require a credit report be clear of a 'satisfied default' 12 months before application. I have drafted a letter, asking for just that, if I pay the full amount immediately, will they remove the default, but I fear it may not work.

I was so good as a student, to come out debt free... and this could literally break my chances