Mortgage with older default

ianmackay88

Hi all, after some opinions/advice.

I have a default on my credit record for about £1.5k from 31/07/2015, so it will be gone in 6 weeks or so. (It was for a Credit Card that was passed to a debt collection company)

Originally I was going to wait before applying for a mortgage until August, however I have seen a property I think I like with a opportunity to get it at a decent price as it needs a bit of work. It's highly unlikely the property will be about in August.

I have an AIP from NatWest for the amount I need (House value £180k with £9k deposit so £171k mortgage (95% LTV - Mortgage Guarantee Scheme product)). 

As NatWest have done a soft credit check does this mean they have already taken my default into account, or will this be likely to cause issues on application? I don't want to lose Valuation Fee, Building Survey Fee and any conveyancing done during the mortgage decision process if I then get rejected.

Would you suggest I just forget about this property and wait until August? Am I likely to save a lot with lower interest rates as well without the default?

Forgive me if the above doesn't make sense, I'm a first time buyer so not 100% on the process.

K_S

@ianmackay88 Can't comment on the specific case as I know nothing about the details.

But with regard to sunk costs -

Val fee - NatWest 95% products come with free vals

Survey fee - hold back on a survey until you have a mortgage offer

Conveyancing costs - go with a no-completion no-fee conveyancer and ask them to hold back on searches etc until after the mortgage offer

NatWest is currently quite quick at processing applications.