Default over 6 years old - Mortgage application with same bank

ZKA28

Hello, I defaulted an account 7 years ago. It’s since been repaid and is no longer showing on my account. I’m about to apply for a mortgage with the same bank, Will this affect me?

Yahoo_Mail

Possibly.  Banks do keep records of "bad" customers and repaying the debt won't likely get you off the naughty list.  Whether this bank does and if they do, how long they will refuse to do business with you isn't going to be public knowledge, however.

bradders1983

Yes it could as they no doubt have internal records that you defaulted with them. Maybe try a different lender to be on the safe side.

Fendal71

Depends who the bank is, I had a default with a certain bank that hadn’t quite fallen off the 6 year mark and they were prepared to give me a mortgage.

amnblog

Not smart. The one Lender that would have a record indicating that you do not pay.
What is wrong with other Lenders?

csgohan4

Probably best to get a broker to go through your choices objectively

ZKA28

amnblog said:

Not smart. The one Lender that would have a record indicating that you do not pay.
What is wrong with other Lenders?

We were using this Lender as partner had a previous mortgage to port with them... The default has been paid and the account closed. Does this still affect me? It was over 6 years ago

ACG

I used to work for a bank and although your credit report is for 6 years, the banks internal records went back much further - easily 10 years. 

Chances are if it has been satisfied (in full) you will be fine, but unless there are ERCs, I would probably just find a different lender personally. A port is a brand new application anyway. If there are ERCs then yes, probably worth giving it a bash with the current lender. 

ZKA28

ACG said:

I used to work for a bank and although your credit report is for 6 years, the banks internal records went back much further - easily 10 years. 

Chances are if it has been satisfied (in full) you will be fine, but unless there are ERCs, I would probably just find a different lender personally. A port is a brand new application anyway. If there are ERCs then yes, probably worth giving it a bash with the current lender. 

Thanks, overdraft is now fully settled and is no longer on my report. Yes the reason we are porting is for refund of ERC.

somerlouise

I’d be careful. 

We had a default (settled) from 8 years ago with NatWest. Not showing on credit file obviously. Our broker tried them for a mortgage and they said no, when questioned it was because of the default. We went with another lender. 

ZKA28

Wesomerlouise said:

I’d be careful. 

We had a default (settled) from 8 years ago with NatWest. Not showing on credit file obviously. Our broker tried them for a mortgage and they said no, when questioned it was because of the default. We went with another lender. 

We’ve had a three hour call with one of their mortgage advisors and they’ve given us a detailed AIP and verified us via soft search. I’m just worried about the formal application... they’ve just approved me for a Club Current Account as part of the application.