Previous missed payments - impact on mortgage application

mon1o

Ive just checked my credit report with experian and equifax and both rate my credit as good (no defaults, iva's, ccjs or bankruptcy) and all my payments are up to date. Last year i had a spell where we were in financial difficulty and I missed 5 payments on my credit card this was brought up to date in march 2008 and ive been very good and not missed a single one since. Experian rate my score as 999 and equifax as 414 (which i think is still in the 'good' bit ).

My husband has defaults on his credit file so the mortgage for our next house will have to be in my name only what i want to know is will the 5 missed payments from last year impact on my future mortgage application? Im hoping not. Our house is currently up for sale so if i cant secure a mortgage we will rent and improve our scores before we apply again.

Many thanks
Monica

yelf

do the missed payments show up? if so they'll have a big affect

mon1o

yeah they do on equifax theres a circle with a 5 in it in march 08 but on experian all my recent payments are up to date it just says at the bottom that there have been missed payments on the account in the past 36 months. call credit i couldnt access because i have neither a visa or a mastercard.

If i am declined will an appeal with an explanation as to why the payments were missed be useful or should i just take it on the chin and rent? Either way we need to move to a bigger property due to having 2 children and they cant share a bedroom for much longer (i have 1 boy and 1 girl).

Thanks for your response
Monica

Mrs_Bumble

Does your broker know about the missed payments?

mon1o

yeah the broker is aware and he said to not apply for a decision in principal until we have an offer on our house. he said until we submit the application we wont know whether it will be yay or nay as recently the people he thought would get approved havent and vice versa.

mon1o

will adding a 'notice of correction' (i think thats what its called) explaining my circumstances at the time make a difference for the better or not?

Mrs_Bumble

Your credit file is correct though isn't it, you missed the payments.

With some lenders they may take your circumstances into account at the time, will depend on what the whole profile looks like, loan to value, level of income etc.

Has your broker asked Nationwide how they would view your missed payments? He can ask for an opinion how they would view the case.

I think I would ask him to.

mon1o

yeah my file is correct, im not disputing that its just that in the 4 years that i have had the account its the only time there has been a blip and im back on track now.

i will call the broker tomorrow and ask him to speak to nationwide regarding this and take it from there.

Many thanks for your help,
Monica