Default and Getting a Mortage

PETIE

My wife and I are looking at getting a mortgage later next year.

I have been with Experian for about 6 Months keeping an eye on my Credit Report, All seemed good, with no CCJ's Default etc, only negative was saying i have no settled accounts so i decided to apply for a barclaycard Credit Card this morning,( so I could cancel my current credit card) I was declined as they said they checked equifax and I have a default on my record.

I then signed up for a free trial of Equifax to see my report there and notice a default from BT for £37 dated February 2010.
but the account was opened in 2007 with no other history other than default in 2010? i do not even remember this and do not understand why it would be there, Would i be best just paying it and still applying for Mortgage next year as i currently live in Wales and the Help to Buy Mortgage scheme runs out in 2015 for Wales or just pay it off and wait till the default is removed in February 2016 ? and hope Help to Buy gets extended

I was also thinking to just pay to get it shown as settled and add a notice of correction explaining that I did not know about it and as soon as I did I paid it off

As it stands I think 1 £37 debt that I did not know about could cost me a lot more in waiting by losing out on Help to Buy and also rising house prices over the extra time i have to wait.

amnblog

Get it paid and then engage a mortgage broker who should be able to sort this for you.

ACG

There will be lenders for this - potentially a couple of ways of getting a mortgage.

If your not aware of the default, get in touch with BT. They may remove it if you can argue they did not make you aware of it.