How long does missed mortgage payment stay on Experian credit file?

SuperMum2008

Hiya, missed mortgage payment last month on a buy to let as the tenant paid his rent late - any idea how long it stays on my experian report? Someone thought it might be 6 months. THankyou!

Welshlassie

5 years I'm afriad

SuperMum2008

Oh dear...sigh!

Welshlassie

If its your only one and you just paid it late, it shouldn't make too much of a difference to your overall credit file

_Andy_

Welshlassie wrote: »

If its your only one and you just paid it late, it shouldn't make too much of a difference to your overall credit file

Whether it was eventually paid or not, normally if it wasn't paid in the calendar month it was due, it will be recorded as missed.

It will certainly make a difference if the OP intends applying for credit in the near future.

Dithering_Dad

I think the wider concern shouldn't be with your credit file but with the fact that you didn't have enough reserves to cover a late rental payment. You're sailing extremely close to the wind financially if this is the case and I would start building up my savings if I were you in order to cover for periods when you have no tenants - I think the industry standard is to plan for 2 vacant months per year.

Does your tenant's rent cover the mortgage and provide a surplus in order for you to build up a cash reserve?

SuperMum2008

Thanks for your comments! Dithering Dad - I agree, we have been forced to sail close to the wind because of a terrible experience with tenant whom we are prosecuting, and have had to use all our reserves. However we are working hard to build them up again and are doing really well. Hopefully this was just a bad experience, which we realise is going to impact for some time, but we will just have to move on from it. The rental normlly more than covers the rent, so we should be back on our feet fairly soon.

Dithering_Dad

SuperMum2008 wrote: »

Thanks for your comments! Dithering Dad - I agree, we have been forced to sail close to the wind because of a terrible experience with tenant whom we are prosecuting, and have had to use all our reserves. However we are working hard to build them up again and are doing really well. Hopefully this was just a bad experience, which we realise is going to impact for some time, but we will just have to move on from it. The rental normlly more than covers the rent, so we should be back on our feet fairly soon.

So annoying that your own credit rating might have been affected by this errant tenant. Hope it all gets resolved quickly for you!

I think this is one of the major reasons why I have always shied away from BTL as an investment, you don't get boilers braking on xmas eve or tenant's refusing to pay when your money is invested in shares. Another major reason is the fear I'd have at having so much money tied up in a single investment.

SuperMum2008

Thankyou for your nice comments!! WE hope the end is in sight, but it is very stressful. Retrospect is a wonderful thing though. And fingers crossed the boiler wont break at all, or we will have to lend them our fingerless gloves until we can afford to fix it!