Paid default of £136 5 days ago - can we apply for a standard mortgage?

keepthechange

Hi everyone,


After lurking on the forums for years I have a question I hope someone can answer!


My partner and I decided to have a quick browse of properties in our area on a whim a couple of weeks ago, after a year of saving for a deposit, and naturally, we have already fallen in love with one! :beer: They don't come up very often on this road and at this size so we want to jump in while we can.


Partner has been clearing up his credit since last year, paying of ~£600 9 months ago and getting a credit card to spend £5 on/pay off each month to have proof of paying on time.


However, we both looked at our reports so we could get an agreement in principle and found that he also had an overdraft with Nationwide which defaulted in 2013! Looking back, I remember pointing it out last year as needing to be paid, but forgot about it. :mad: Don't know how either of us managed to miss that up until now.


Anyway, he went straight to the bank on Thursday and paid the outstanding balance of £136. The only problem is that I don't think banks update the credit reference agencies often enough to help in this case, maybe once a month.


We do have an AIP with Halifax now as it could be completed quickly online, but not being a guarantee, I wondered if anyone had an idea of what our chances would be for a full mortgage application with banks/building societies only 5 days later? There's a bit of competition with this property so we need to move quickly with an offer and mortgage details. Nationwide advised my partner to keep the payment receipt and mention this to any broker or lender we deal with, but I'm not sure how much weight it carries considering it hasn't cleared through the CRAs yet.


Do we have a chance for a good standard mortgage now, or would we have to go for an adverse credit mortgage, even though the default has been paid? How long would it take for this to clear from partner's report?


Other (potentially useless?) information:
£136 is my partner's only default/outstanding balance, which is now paid. Credit looks good otherwise.
I have no defaults or outstanding balances. Credit is good and I have credit available to me of £4k from 3 credit cards, using only about 12% and paying off in full each month. (I only use my second oldest card - should I close the newer one which has a limit of £750?)
Partner started new job in April, earning £3k more but meaning he doesn't have a long history with his employer. I started my current employment 10 months ago.
We earn £48k pa in total and are going for a mortgage of ~£170k/90% LTV.
I hold a current account with Barclays and we did a soft AIP with them, which came back rejected.


P.S: If anyone has a recommendation for a broker/adviser in the Kent/Sussex area, please let me know!

ACG

It should be possible, you will have more options if you wait for it to update (which could be te 1st of the month), but it is probably worth while sitting down with someone to go through all of your credit reports.