Defaults up to £250 can be considered
We will accept an application with one default up to £250 registered by a mobile phone company, provided that it is has been satisfied before submitting the mortgage application.
If this debt is disputed by your clients, and provided they are able to produce evidence that the matter is in dispute (copies of communication with the mobile company), we may consider the application with the default remaining unsatisfied.
We can also consider other defaults where the total number of defaults (mobile phone and other defaults combined) does not exceed three. The total value of these other defaults must not exceed £250, they must have been registered over two years ago, and satisfied 12 months prior to application. A satisfactory explanation of why the default occurred will be required.
Mr G & Miss S applied for a 90% mortgage.
Mr G’s credit file showed evidence of a £204 default with a telecommunication provider which occurred nine months ago. His broker explained that the matter had arisen due to confusion when terminating his previous mobile phone contract. Mr G only became aware of the default when attempting to obtain a mortgage, he settled the debt as soon as he became aware, and this was reflected on his credit file.
Both Mr G and Miss S had no other adverse history, and as it was clear this was an oversight rather than inability to pay, the application was agreed.