Missed mortgage payment - advice

colink24

Myself and partner took out a mortgage with Northern Rock six months ago, when buying our first house. The direct debit dates did not fit into the dates we wanted so we decided we would just call up each month and make the payment.

However, we returned from holiday only yesterday, which has resulted in a missed payment now going down on our record. We are very annoyed about this as, even though it is our fault, it is merely an oversight due to holidays etc and now it seems it may affect us if you want to change lender etc etc. Northern Rock also say we missed a payment in May, but this is not true and Northern Rock admit this is an administrative error - though it appears it is still showing as a missed payment as I have just phoned the collections department. I actually phoned to make the payment last night but NR close their offices at 5pm on the dot, so annoying when people are at work and missing a payment is obviously quite bad

Can anyone give us advice on how this might affect us long term in terms of gaining credit? We have no issues at present, as we have credit cards, overdrafts, car loans etc etc

Many thanks

happybroker

If the "late" payment shows on your credit file it will affect you, no doubt.

Northern Rock will usually change the date of the direct debit if you ask them and it's a condition of the mortgage that you pay by direct debit though they do accept card payments for some reason.

Unfortunately it's your chosen route of paying by card that is causing you problems. I advise my clients to set up a "bill account" where they pay money in on pay day and use it purely for bills to out of. It's not rocket science and means it doesn't matter what day of the month the payments go out provided you can get yourself month in front.

beecher

I don't know how it will affect you, but I'd advise you to set up a direct debit for your mortgage as soon as possible, regardless of whether the direct debits fit in with the dates you'd rather have or not. Banks don't care whether you're on holiday or not and the mortgage is far too important a payment to forget.

Toughluck

If you have only had the mortgage 6 months, shouldn't have too much of an impact later on (depends how long you are tied to them for). 12 months mortgage history is taken into account when re-mortgaging. Anything over that is historic payment profile.

As happybroker says, sort out the payment method. You may get away with now but if this continues and they report missing payments on your file within the last 12 months of your product it could mean bye bye to high street lending for you I'm afraid.

dunstonh

A number 2 account or bills account makes things so much easier. Just after pay day you pay the total amount of your bills into the number 2 account and then it doesnt matter what date in the month it is paid.

colink24

Toughluck wrote: »

If you have only had the mortgage 6 months, shouldn't have too much of an impact later on (depends how long you are tied to them for). 12 months mortgage history is taken into account when re-mortgaging. Anything over that is historic payment profile.

As happybroker says, sort out the payment method. You may get away with now but if this continues and they report missing payments on your file within the last 12 months of your product it could mean bye bye to high street lending for you I'm afraid.

We have a 2 year fixed atm, so that is actually great news! Thanks so much!!

We will definitely get this sorted in the next few days and put it down as lesson learnt. We was very foolish to do it the way we did

Thanks to everyone for the advice

pm2326

happybroker wrote: »

Northern Rock will usually change the date of the direct debit if you ask them and it's a condition of the mortgage that you pay by direct debit though they do accept card payments for some reason.

Just wanted to point out that Northern Rock NEVER allow you to change the Direct debit collection date, they will only collect on the 1st working day of the month unless its a new completion and the first payment is always on or around the 7th.

Also for info the collections department at northern rock doesnt close until 8pm so you could easily have made your payment by card last night!