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  • FIRST POST
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 6:51 PM
    • 40Posts
    • 13Thanks
    stuartbrookes
    Should I challenge a default?
    • #1
    • 18th Apr 17, 6:51 PM
    Should I challenge a default? 18th Apr 17 at 6:51 PM
    Hi,

    I need some advice... I have only just noticed that a mortgage payment I made in February didn't go through until 1 day late - I didn't receive any notification from Nationwide about this - presumably because they saw it come in the morning after it was due.

    Having just been turned down for an AIP on a mortgage, I went to check my credit score which is reasonable (circa 850 for Experian and 390 with Equifax) - and found that I am down as being 1 month late on my mortgage payment in February.

    I feel it is a little harsh that a payment being processed a few hours later means I'm being treated exactly the same as someone who didn't pay at all.

    Nationwide are refusing to remove the default. Should I escalate this or is it not worth it?
Page 1
    • Thrugelmir
    • By Thrugelmir 18th Apr 17, 6:54 PM
    • 55,160 Posts
    • 48,352 Thanks
    Thrugelmir
    • #2
    • 18th Apr 17, 6:54 PM
    • #2
    • 18th Apr 17, 6:54 PM
    Why did you make it late?
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • sultanabran
    • By sultanabran 18th Apr 17, 6:54 PM
    • 151 Posts
    • 103 Thanks
    sultanabran
    • #3
    • 18th Apr 17, 6:54 PM
    • #3
    • 18th Apr 17, 6:54 PM
    It won't be a default, it will be a late payment marker. How do you pay your mortgage? If it's by direct debit then I'd complain as you don't have any control over when they request it. Unless you had insufficient funds and the direct debit was returned.
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 7:02 PM
    • 40 Posts
    • 13 Thanks
    stuartbrookes
    • #4
    • 18th Apr 17, 7:02 PM
    • #4
    • 18th Apr 17, 7:02 PM
    I made the payment via my phone whilst abroad on business. I made it after 4pm which meant I missed a cut off for same day transactions apparently, I didn't realise that.

    It went through with them therefore 1 day late, albeit they admit it was only a few hours and also the only miss in 10 years with them.

    On my credit report, it shows as being up to 1 month late.

    I'm just wondering whether I can/should challenge this or ask them to remove based on a good will?
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 7:04 PM
    • 40 Posts
    • 13 Thanks
    stuartbrookes
    • #5
    • 18th Apr 17, 7:04 PM
    • #5
    • 18th Apr 17, 7:04 PM
    Unfortunately I get paid on the last day of the month so I can't set up a DD as they said they need that 72 hours before payment date and that means a DD would make it late.

    Before it is suggested, I can't change payment date as that means a double payment which is over £3,200.

    Is this really going to have a significant effect on my ability to remortgage as I'm due to remortgage next month?
    • ACG
    • By ACG 18th Apr 17, 7:35 PM
    • 15,390 Posts
    • 7,782 Thanks
    ACG
    • #6
    • 18th Apr 17, 7:35 PM
    • #6
    • 18th Apr 17, 7:35 PM
    Yes. Late payments on a Mortgage are treated much more seriously than a credit card late payment.

    Whilst it is not impossible to switch lenders, if you are currently with a high street lender then I would think you would be better staying put for 2-3 years and just switching products.

    A late mortgage payment so recently is going to be a problem with a lot of lenders. Not impossible to overcome, but it is not the easiest.

    On a side note, it is "just" a late payment, not a default.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 8:05 PM
    • 40 Posts
    • 13 Thanks
    stuartbrookes
    • #7
    • 18th Apr 17, 8:05 PM
    • #7
    • 18th Apr 17, 8:05 PM
    That's not what I wanted to hear. We want to take some equity out, but my current provider limits LTV to 80% if you're taking equity for debt consolidation - so I was wanting to switch to another provider that will give me the 83% I need.
    • ACG
    • By ACG 18th Apr 17, 8:12 PM
    • 15,390 Posts
    • 7,782 Thanks
    ACG
    • #8
    • 18th Apr 17, 8:12 PM
    • #8
    • 18th Apr 17, 8:12 PM
    It might be worth looking at a secured loan for the extra?

    Get a broker on it, they can look at both options for you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 8:16 PM
    • 40 Posts
    • 13 Thanks
    stuartbrookes
    • #9
    • 18th Apr 17, 8:16 PM
    • #9
    • 18th Apr 17, 8:16 PM
    Thanks, going down that route.

    Is Credit Matcher accurate on here? I used that and it gave me some options, both Building Societies and also HSBC. Others were noticeable by absence, so took a bit of confidence from that as it does a soft check I believe.
    • ACG
    • By ACG 18th Apr 17, 8:25 PM
    • 15,390 Posts
    • 7,782 Thanks
    ACG
    Im not sure, to be honest I normally go through credit reports manually and then speak to lenders about criteria and likelihood of acceptance.
    HSBC do not deal with brokers in the main so I have no experience with them.

    It would be interesting to hear how you get on, but its important to not do too many credit checks and do more harm than good.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • stuartbrookes
    • By stuartbrookes 18th Apr 17, 10:46 PM
    • 40 Posts
    • 13 Thanks
    stuartbrookes
    Will let you know, a friend of mine is a Mortgage Advisor, he doesn't think it will be a problem - just said it is knowing the right ones to look at.
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