Missed mortgage payments - not my fault. Credit rating affected?

Max_Headroom_3

Briefly, have a repayment mortgage, was for about £20Kish.

Back in April I sold something and used the money to pay most of it off, leaving a balance of about £1,200. The main reason I did this was because my mortgage is one of these flexible ones that allows me to borrow against it up to a certain level and I thought in these credit crunched times it wouldn't hurt to keep a confirmed credit line open. I was advised by the bank that I should keep a balance of £1,000+ outstanding.

This was all organised at the bank, and my payments adjusted from the £200ish/month down to £12/month. I pay by direct debit so no probs.

Next direct debit went out, £200ish that it used to be. Went into bank immediately, very sorry, mistake, please ask your current account bank to "pull back" the payment as we can't reject it now its sent. Went to my bank and they did that. Went back to mortgage bank, no probs they say, we will cancel DD and set up standing order for £12/month, all sorted.

Several months later I notice that no mortgae payment is being taken. I phone mortgage company, mistake, no standing order set up (!!). I ask about missed payment, why wasn't I contacted, what about my credit rating? Told not to worry, the £12/month has been taken out of the £200 overpayment so no credit rating issue (that's right, the £200 that my bank pulled back). Tried to explain this but they were adamant all fine, would send new SO form which I got, filled in, payments started going out at £12/month.

Today I get a statement through (annual statement) showing whole line of missed £12 payments!!! :eek:

Am obviously going to have to take this up with them but no confidence that they'll deal with it properly as clearly useless.

My question is, will this have affected my credit rating (bearing in mind they didn't seem that bothered and stated it wouldn't) and what is the cheapest/easiest way to check? And if there is a black mark can it be cleared off as clearly not my fault (although that might be difficult to prove as most dealing was in bank or by phone and with idiots).

Frankly if I had the £1,200 to spare I'd clear the whole damn lot as sick of all the bungling but been ploughing every penny into clearing one last remaining loan (to my parents so very low interest, hence mortgage first with their approval) which should be done shortly so at the moment I'm stuck with this silly £1,200 mortgage, just concerned about effect on previously completely unblemished credit rating.

aaron772

This may appear as x amount of defaults on your file you can do a credit check online for a few pounds or send away for it. If it comes back with defaults on it then I would put the whole lot in writing as phoning them is looking pointless



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Dont be too quick to judge

chivers1977

I am guessing that it is a Woolwich mortgage. Were the £12 a month payments actually leaving your account?

Max_Headroom_3

It is indeed, and no they weren't.

It was only when I was looking at a bank statement some months later and thought "hang on, there's something missng here!" that I realised and contacted them to tell them they weren't taking any money from me.

This was four months worth, a quarter of a year, you'd have thought they'd have said something!

Max_Headroom_3

aaron772 wrote: »

This may appear as x amount of defaults on your file you can do a credit check online for a few pounds or send away for it. If it comes back with defaults on it then I would put the whole lot in writing as phoning them is looking pointless

I'll have a go at that.

If it is on my credit rating can it be removed without leaving evidence?

chivers1977

Hi Max

I would call up 0800 022 4022, new freephone number tomorrow. As the payments were only small, it is not unheard of for this to happen. I would make a request for you to make up the difference and they may well agree to clear the credit file. If it is 4 missed payments, they may well have reported missed payments from 2 months in arrears ie £24! Try and appeal to the agent's better nature.........

mic200202

Yes it sounds like the gold old Woolwich offset - not the easiest offset to get your head round. The Standing order is paid from your Woolwich savings a/c so its possible they have been using your 'reserve a/c' to make the payments, ie eating up the amount you have over paid. Its highly unlikely you have actually missed any payments since you have a large reserve balance in there. You would be in no doubt if you had missed payments as they are required to tell you in writing first of all, then, if more than 3 are missed, they must serve you with a default notice to tell you what action they are going to take (ie issue default notice unless further action is taken).If you havent received any such correspondence then its most unlikely you have a problem. In the event that you do notice something on your credit file, then you should go back to lender and ask for a full explanation of this.Always do this in writing, and make a note of names on any phone calls. Although you have had a problem here, I would not necessarily suggest you pay the whole balance off, as you have identified that it represents a very useful reserve fund for you to access at any time.

Max_Headroom_3

Mic, that is fantastically useful and makes total sense, thank you.

I guess that's what the woman meant when she said that there was no problem as the amounts were effectively taken out of my account (although she was adamant it was coming out of the unchanged mortgage overpayment that was clawed back), and also why there's been no correspondence, which seemed extremely odd to me (I'd have thought one missed payment would have initiated contact, let alone four!)

I know the payments are definitely going out now as they're leaving my current account so I think I'll assume all is well and maybe do a credit check as well at some point just to confirm.

Thanks again, much appreciated.

boggie40

get a free months trial with - experian & equifax you can see for yourself within an hour if these missed payments have affected your credit rating.