Default shown up on credit search during Mortgage application

KGW_2

Hi All,

I am currently in the process of purchasing my first property for which I have applied for a mortgage from Lloyds. In preparation last year I checked out my credit report with Experian which showed everything to be fine.

I have just heard from the bank to say that there is a default showing on an address which I haven't lived at since 2008. They wouldn't give me any further details so after doing another credit report with Equifax and asking for the address in question to be included there is a default showing with Natwest from 2010, 2 years after I moved out. I think this is from my old student overdraft which I was sure I had settled but when I moved out of said address it was a very difficult time for me and I must have forgotten to change my address and subsequently forgotten all about this account, therefore I have no correspondence from Natwest alerting me to this default.

I would have through that if I owed money it would have shown up when opening up new bank accounts, or credit cards?

I'm in a total predicament now as I don't know how best to address this issue. Should I contact Natwest? How long would it take to resolve this? Any advice greatly appreciated.

Many thanks,

KGW

[Deleted User]

KGW wrote: »

I would have through that if I owed money it would have shown up when opening up new bank accounts, or credit cards?

Correct - the default would have shown up to anyone searching Equifax. Whether they then still chose to lend to you, would be up to you.

A satisfied default would look a little better than a default, son contacting Natwest would be the best place to start.

KGW_2

Dear zx81,

Thanks for your response.

If I get in touch with Natwest and pay off the debt, do you know how long that will take? Will the default stay on my file and then will that prevent me from obtaining my mortgage?

Thanks,

K

[Deleted User]

It will stay on your file for six year from the date of default, but would look better to potential lenders if you have satisfied it, rather than just avoided paying it permanently.

You may want to use a broker for your next mortgage application, as some lenders are more picky than others and you need to have an understanding of their criteria.

andynclaire

yes the default will stay on your credit file. It will just show as settled once it is paid. It will stay on your report until 6 years after the default date (not settled date). It will probably impact a mortgage application.

KGW_2

thanks for your help.

So after six years from date of default, whether I settle the debt or not the default will not show up on credit searches? Will lenders be able to see that there was a default in the past?

K

Buzby

Yes - so I wouldn't rush to pay it in the belief that this will put the record straight. What I find interesting, is that your credit report didn't show this as a concern when you checked it, but did when NatWest did. Now that you've corrected the DCA's omission, if is now formally linked as your default

It'll be 2 years before this is expunged and not of any concern.

andynclaire

not after 6 years no

KGW_2

Buzby wrote: »

Now that you've corrected the DCA's omission, if is now formally linked as your default

It'll be 2 years before this is expunged and not of any concern.

Hi Buzby,

Thanks for your response. I'm not sure what you mean, what does DCA mean?

The bank found the default when doing the credit search and then I did a credit report with Equifax which didn't show anything, then I spoke to Equifax on the phone and asked them to include the address from 2008 which the bank had told me had the default registered against it, when they included it in my report the default from Natwest popped up. Does that mean that I have corrected it?

Is there anything I can do as I haven't ever received any notice of default from the bank albeit that I didn't notify them of change of address.

Thanks,

K