Utility Debt Affect AIP Application?

K1RST1E_2

Morning All,

My husband and I are finally in position to start looking to buy again. Long story short, we sold our shared ownership property last year and moved into rented accommodation. Through inheritance, we have cleared our debts, put aside £20k and have received an offer on the inherited property and providing all goes through ok, will get £75k from that.

We were always needing to go subprime due to defaults on my credit file from 3-5 years ago. My credit file in the past 24 months+ has been immaculate. We're starting to look at properties and have a rough idea of how much we'd need so want to proceed with an AIP through a broker so that we can make an offer if we find the right house.

I've checked my credit report yesterday and am devastated to see that NPower have registered 6 missed payments with an outstanding balance of £10 on my account. This wasn't there last month! When we moved house, we had to use a different provider initially and still do so informed NPower and waited for a final bill. I've rang them continuously over the months chasing the final bill and voiced my concerns that they were going to start chasing us for a debt we didn't know the amount of. They assured me the account was on hold whilst they were still processing our final bill and this wouldn't happen. Anyway, we received it this week and paid it off in full but I was shocked to see these 6 missed payments.

I called them and they have put it through to the complaints department. They assure me they will amend this with the CRA's but I'm just terrified this is going to scupper our chances of a mortgage. I'm certainly not going to be able to proceed for a AIP until this is resolved, am I?

We're looking for £160k with a £70k deposit (roughly 69% LTV). We have a combined income of £65k p/a.

Am I worrying about nothing or could this be a deal breaker? We had an AIP with Precise Mortgages last year and suspect this is who we'd need to use this time.

Thanks for reading.

ACG

Are they on all 3 credit reports? (equifax, experian, noddle).

Get a letter from them to confirm it will be removed.

Difficult one as until it is resolved, it looks like you are just a bad payer (as its historic and more recent). Once theyre removed it will just look like you were a bad payer in the past but not anymore.

Personally I think because of the LTV there will be a lender for this regardless of whether they are removed or not. But i think you should speak to a broker.

K1RST1E_2

Thank you. This only appears on my Experian report.

I should have this all resolved in the next 10 days. It's just frustrating as we were hoping to get an AIP early next week!

GMS

How does this show on the reports?

123456 or 111111?

K1RST1E_2

It shows as O then U followed by 6 for May.