What are classed as defaults?

wench90

My husband and I are looking to buy a property in the near future. We earn around £85000 pa between us, we have no loans or hp agreements but do have credit cards (£15000 between us) and agreed overdrafts.

Neither of us have any ccjs and have never got into any arrears as such with credit card payments. My husband has occasionally forgotten to pay his credit cards bill on the date it was due and ended up paying it within a few days but accrued a late payment fee in doing so. My query is does this count as a default even if it is a mistake that's rectified very quickly and doesn't extend beyond that month of payment?

I m worried this kind of thing will stop us from getting a mortgage which would be very frustrating!!!

Any advice would be great

ACG

No, thats just a late payment.
If your worried, have a chat with a broker.

FluffyClouds

I am in a similar position although slightly different. I am planning to apply for a 75% LTV Help to Buy mortgage with Woolwich in the next couple of weeks. Putting down 5% deposit and getting HTB equity loan for 20%. I currently have 2 late payments showing on my credit reports with Experian and Equifax. The first one was in 2009 and was a late payment of £20 on a credit card but the second one is showing as a late payment of £2374 in November 2013. The second one is incorrect. It is showing on my Peugeot HP account which I paid in full in December 2013 (settled a year early) and Peugeot have admitted it is their mistake and are putting it right but I am having problems with them rectifying this. It seems to be taking a long time. I have raised disputes with Experian and Equifax so it is in the process of being sorted out. However, I am concerned that this late payment could affect the mortgage decision. I am using a broker and I have explained this issue to him and I showed him my credit report. He said that he did not think it would be a problem. However, I am still trying to get it resolved ASAP as I would feel much better about putting my application in if it is removed. The problem is once I pay the reservation fee on the property I want (hopefully next week - as soon as it is released) I need to exchange contracts within 28 days so cannot wait too long before putting my application in. Anyway, in a nutshell, I was also worried that a late payment would be considered as a 'default' but seemingly from ACG's reply and my mortgage brokers view it is not likely to be classed as a default.