Mortgage Request - worried about bank statement

Rhiannesh

Hello, we have had a massive change in circumstance and have decided to buy a house sooner.

We have put a request in for a mortgage and given all the paperwork in. But am worried about a payment I make to a loan that I defaulted on 8 years ago. I just pay £50 a month. It's not a problem I just haven't paid it off yet.

What do you think the mortgage company will say about it? Will they notice?

We have applied for a 115k mortgage when our salaries allow us to have a mortgage of 390k.

What should I do? Do you think it will be a problem?

ACG

How is the question worded when it asks about defaults? Have you ever/in the last 6 years have you defaulted? If the former, then it might be a problem, it might not.

Put the £50 a month down as a commitment on a loan.

Does the default show on your credit reports? If not then it will just be on your statements, if it shows as moorcroft/merlin or one of the other debt collection companies it is likely they will pick up on it.

How much of an issue it will be depends on the lender and the rest of your application. Some lenders it will fly through without touching the sides, others may make a meal of it.

You should run anything like this by the lender before applying - that is what I would do.