Help with a Default

stu83

Hope this in the correct place!

Me and my partner are currently trying to get a mortgage, im a police officer and my partner is a teacher,, all good so far. We went to see a mortage advisor and got a decent rate etc. but now the lender is saying they wont lend us the money due to our credit score.

I've checked Experian and i appear to be fine, never missed any payments etc. however my partner has a default on her account.

What happened was when she was student she had a student account with HSBC, her wages etc. went into another account and she was only using the HSBC one as a backup for the overdraft (which she was assured would be fine.) She used up the overdraft then left the account alone, with the intent to pay it back at a later date.

Then out of the blue she received a letter from a debt company saying they where taking over the debt and she had to pay it back. We rang HSBC who informed us they had "sent" her 3 letters stating she had to pay money in to the account otherwise it would be defaulted, she did not receive ANY letter. The debt was paid off in full but this default is still on there. Is there any help we could get to remove it, especially seeing as she had no idea what HSBC where doing until it was too late.

Thanks

darcyvuqua

i think that this default will stay on her file for 6 years after the date she defaulted i dont think they can be removed however they can be marked satisfied im in the same boat after my wife died in 2004 good luck

_Andy_

Stu - which lender has declined you and what has your broker suggested as the way forward now?

stu83

Hi, thanks for all the responses so far.

_Andy_ wrote: »

Stu - which lender has declined you and what has your broker suggested as the way forward now?

It was only the first mortgage company we tried, Nationwide, our mortgage advisor told us to check our files on Experian, which i've just done, and get back in touch with him. Im still waiting for him to ring back.

He said other places may still offer a mortgage but he wasn't sure. The problem is im worried this will have a big affect on our repayments.

thanks

Cazza

Hi! Few questions I'm afraid! How much was the default for and when was it registered? How much deposit are you putting down now? Is everything else for both of you squeeky clean? Which lender has declined you? Who do you both bank with now? Nationwide are notoriously picky, I had some clients in a very similar situation about 12 months ago.

stu83

Cazza wrote: »

Hi! Few questions I'm afraid! How much was the default for and when was it registered? How much deposit are you putting down now? Is everything else for both of you squeeky clean? Which lender has declined you? Who do you both bank with now? Nationwide are notoriously picky, I had some clients in a very similar situation about 12 months ago.

Hi, yes other than that we're both "squeeky clean!" The deposit we're looking to put down is 10% (were looking around the £125,000 mark and we have £16,500 at the moment but other fees will have to come out of that too.)

So far its only Nationwide who have declined us. I bank with Halifax and my partner banks with TSB (I think!)

The only other problem is the terms of my contract with the police says "probabtionary for two years" AND my partner only starts her teaching job in September! (Why is nothing ever simple!)

_Andy_

Might be worth trying Abbey, they're probably the most lenient high street lender. As has been said before, Nationwide are very very picky about adverse.

stu83

_Andy_ wrote: »

Might be worth trying Abbey, they're probably the most lenient high street lender. As has been said before, Nationwide are very very picky about adverse.

Thanks andy, will give them a go!

Cazza

Abbey do sound like a possible, alternatively Halifax of C&G. Both my clients were teachers and had a 5% deposit, one had an 18 month old default for £58 to cause the Nationwide decline :rolleyes: . C&G were happy to lend to them as the client with the default banked with Lloyds. The interest rate is likely to go up, because the broker is likely to have recommended the cheapest rate already, but I think you'll get it sorted out on the High Street without any problems!

Cazza

stu83 wrote: »

Thanks andy, will give them a go!

Wait until your broker comes back to you before you do anything yourself first please!

stu83

Cazza wrote: »

Wait until you're broker comes back to you before you do anything yourself first please!

Thanks for both posts, I will wait and talk to my broker as advised. Thanks for your help, i do feel a little reassured now! :-)