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Effect of bad debt on mortgage application?
gerardflanagan
Posts: 182 Forumite
I'm going to apply for a mortgage soon. Apparently I have £115 outstanding from 2007/8 for a gas bill. I had no idea about this and would definitely have paid it. The rest of my record is perfect, I always pay everything in full and on time.
The gas company are chasing up more details so I can check my bank accounts to see if I did actually pay it. Assuming I didn't though, how will this affect my mortgage application?
The gas company are chasing up more details so I can check my bank accounts to see if I did actually pay it. Assuming I didn't though, how will this affect my mortgage application?
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I've spoken to the gas company and they need to find out more information, so I need to ring them again on Tuesday.
The default only shows on Callcredit's file (not Equifax and Experian). Given that nearly all mortgage lenders use Equifax and Experian, hopefully this won't matter too much for my mortgage application? I presume The gas company pulling extra information won't flag anything to Equifax or Experian will it?0 -
What is the default date0
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If the default was before 3-6-09 (i.e. 6 years ago) then it should not be on the record any more - if you missed a payment in 2007/2008 it should not be on your record as the default should have been placed way back then - a default showing on the file now must have been placed after 4-6-09 which is a joke if the payment was potentially 18 months before. Post on the Credit Record sub-forum to confirm this
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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The default date says: 24 November 2009
They confirmed to me that the account was closed in 2008 though.0 -
If nothing else, then, at least it won't be a problem beyond 6 months
You should be able to get a mortgage, although you may be better getting a broker who knows what they're doing, rather than finding out the hard way that it leads to delays.
I'd chase them harder, though, for evidence of the debt and that they tried to enforce it. It may be a mistake, but even if it isn't then you probably have a good case for asking them to remove the default if they didn't contact you about it. They may not do anything, but it's worth a go."You did not pull yourself up by your bootstraps. You were lucky enough to come of age at a time when housing was cheap, welfare was generous, and inflation was high enough to wipe out any debts you acquired. I’m pleased for you, but please stop being so unbearably smug about it."0
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