Cost of a Default?

clarkey_2

Hello All,

I'm just wondering how big a deal a default of £53 is going to be in the big scheme of things. I do have other credit history which is on the whole good (two missed payments a couple of years ago).

I'm going to take action against the default - it was settled last year and the Halifax had said it wasn't going to result in a default notice or a note on my credit history (see rant on anything else board).

In trying to cope with this revelation, I'm trying to figure out what the worst case scenario is:

What is a £53 default going to mean for me in the future. Am I essentially screwed when it comes to getting a mortgage in a couple of years? Assuming all the other factors remain good does anyone know what the this is going to cost me?

Phonix

I'm confused, did you default?

I have six repayments missed on my overdraft (they didn't even send me a letter to tell me this at the time or fine me) and I've been told by expiron that as long as I keep the account open rather than settle it, the mark on my credit record will be gone in two years as it happened a year ago.

herbiesjp

Some high street lender will ignore this totally, as long as your credit file sinc ethen is all up to date.

clarkey_2

Phonix wrote:

I'm confused, did you default?

I have six repayments missed on my overdraft (they didn't even send me a letter to tell me this at the time or fine me) and I've been told by expiron that as long as I keep the account open rather than settle it, the mark on my credit record will be gone in two years as it happened a year ago.

I'm confused too, although I'm starting to piece it together.

As for if I defaulted or not, I thought I hadn't. I paid the cash in and had the intention of closing it (was told by agent I'd need to do this in person) and I cancelled the direct debit on the account.

I've managed to get some more information out of them such as the closing date of the account (7 months exactly after I made my payment). I reckon they've just messed up somewhere.

I think they may have added some form of charge onto the account although when I paid the 1st months arrears I asked if it covered everything and was told yes. I didn't receive any further communication about the account being in arrears.

I'm talking to there complaints department about it now, so here is hoping I can get it moved.

Thanks to the other poster.

Xbigman

Mortgage wise, a default scr*ws you unless you have over 10% as a deposit.
Some lenders are more generous than others but you will need a face to face application and you won't get the very best deals going.

Get rid of it if humanly possible.
Regards



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