Default from Lowell affecting AIP

purple_pixie_2

Hi

I was wondering if i could get some advice.
I am looking to get a new mortgage with my partner.  We applied for an agreement in principle from my current lender. This was rejected due to a default being on my credit score. 

An overdraft debt was sold to Lowell from an old bank account. I  can see that it only defaulted in April 2023. However I have not accessed that bank account for around 7 years. This was due to a controlling relationship that I was in. Long story!

I am happy to reach an agreement with Lowell to pay off this debt (£1700), but my question is, should it have gone into default earlier?  What would be the best step to take to rid myself of this? I'm pretty distressed about it all. My mortgage advisor has said not to worry and we can sort it, I've sent him my credit report and I'm awaiting his advice so thought I would ask here too.
I have had no contact with the bank or made any payments since 2018. Lowell have sent letters to me to be fair but I've buried my head in the sand a bit but now want to sort it out.

Thank you! 

ACG

It depends... As it was an overdraft, there was no contractual payment. So it could have taken a good while before it defaulted. 

As your broker says, dont worry. A one off default can be overcome. 

fatbelly

Ask Lowell for a history of the account.

You may have to do a SAR to the original bank

You may find this is correct

veronikamoneva

the quality of the defaults definitely matter - I managed to get a mortgage with 10 CCJs and 11 defaults, some were sold to Lowells, but they were mainly utilities from my previous addresses etc. Bank overdraft is more serious, but because it's 2 years old, it's still possible to secure a mortgage, perhaps with a different lender, not the main/high street ones, it's worth a research. Paying the default off [so it's satisfied] might look better, if you can do that.