Old Bank Default - Mortgage (5 replies)

Got myself into a bit of a pickle.

I'm applying for a mortgage on a holiday home. Looking to let it out when we're not using it. So, got our offer accepted and submitted our mortgage application. Anyway, after a few days I hadn't heard anything from the bank, I called up to try and get an update. They informed me that there was a discrepancy with my address against their records. I don't have a bank account with them anymore, but I did as a student. My old account defaulted and closed about 9 years ago. Back in the day as a student I did the classic thing of maxing out my student overdraft and not putting anything into it. Problem is I moved address to a different student house and didn't inform the bank at the time. They sent me letters saying I needed to use the account, or pay the overdraft back in full. Stupid me, I didn't get their warning letters. Anyway a year or two after I moved I got a call from a debt agency out of the blue, asking for this overdraft money. I paid back in installments and it ended up as a closed default.

Anyway this came off my credit list a couple of years ago as it's now pretty old. However I applied for this mortgage with the same bank I had this account with. They're now saying that this may affect whether or not they approve the application. Obviously I'm pretty peeved about this as I've kept my credit record glowing since that time. Just wondering if anyone had advice or might have any experience with things like this? I've googled and apparently they are entitled to look back as far as they like if they have the records. Silly me.