what will happen (returned dd)

apples101

i have just had a direct debit returned unpaid due to lack of funds (mortgage). i will be able to pay this next week once paid, however i will then need to pay my credit card of (T&C of Account, Natwest Prem account) which i wont be able to do.

Does anyone know what will happen re Mortgage payment, credit ref etc. the CC payment and the best way to limit any actions.


Cheers.

saver6

Depends who you're with. I bank and mortgage with Halifax and they will attempt to take the mortgage dd out of that account every day for 7 days before it counts as a missed or late payment, however I still get charged in the bank account for non-payment of direct debit (stupid, considering it's the same bank, but that's a whole other story!) I don't know if any other mortgage lender does this - I'd be interested to find out.

The main thing you need to do is phone your mortgage lender to discuss with them your options. They'll be more likely to say yes to the delay as they probably hear this kind of thing day in day out (but will most likely to add interest if yuo are on a daily interest charge...umm, I think). And any lender is more understanding when you at least keep in touch and let them know what is happening and especially if you offer to pay a smaller honorary payment to show you want to be as cooperative as possible. Then once you've spoken to them, phone the credit card companies and do exactly the same, hoping to defer (be veeery nice). But do it right this minute, before the order for the dd goes through, at which point they can't do anything to stop the payment, and then you'll have more nonpayment fines.

newmoneysaver_2

Hi apples.

Sorry I can't really help in terms of the returned dd, but the mortgage will mark it down as a late payment on your credit file.

Do you get paid monthly or weekly? Have you thought about changing your dd dates to coincide with your pay date? I would change your mortgage payment date to after you get paid, not before, this will help to avoid this happening in the future.

HTH

saver6

But deferring payments also begs the question - what will you do next month when it all happens again because you'll technically be paying twice for both items in one month!? Eek! Is there a reason why you have not been able to pay?

file_wizzard

newmoneysaver wrote:

Hi apples.

Sorry I can't really help in terms of the returned dd, but the mortgage will mark it down as a late payment on your credit file. HTH

In most cases the lenders would only add a "late" mark if the payment was more than 30 days late, this is purely to do with the mechanics of how they upload their data to the CRA's

apples101

mortgage payment next month will be ok. it's just this month, i tried to re-mortgage and incurred a valuation fee £500 which came back at 25K less than what we paid for it so couldn't go ahead doh. plus fee for account also charged this month (both of which were not catered for).

I need to find £1400 for credit card by next week (which aint gonna happen) and i have a Premiaire account with Natwest in which you have to pay the CC everymonth.