Late Mortgage Payment advice

noel7748

Hi all,

As someone new here, I'm not entirely sure if this is the correct place to post this message on the forum, so forgive me if I've got it wrong. I just need some advice from someone who perhaps has been in tjhe same situation. The story goes something like this:

Myself and my partner have one standing order each from our current accounts which are paid into a joint account to which pays our bills and mortgage. The standing order is for the 1st of each calendar month. I am with Barclays and the bills/mortgage account is also with Barclays. The mortgage payments are taken on the 3rd of each calendar month. This month however her bank (HSBC) has been slow to transfer the money and it did not appear in the account until today (despite saying on her statement that it had left on the 1st) - a whole 3 days late! This has resulted in the mortgage company charging us £50 and the bank £22 for a returned payment.

On top of all this the lady in the mortgage company who I spoke with on the phone now says that this will be recorded as a 'late payment' on our credit report :mad:. Both my partner and I have impeccable credit history and we were hoping to apply for a home improvement loan next month. This naturally has left me furious, so I would just like to ask some simple questions that people here may be able to help with:

1. Is having a late mortgage payment worse than one on a credit card?

2. How badly will this affect my credit rating?

3. Is there anything I can do to 'repair' or alleviate the damage already caused?

4. Which bank is to blame, and is there ayway I can ask them to sort out the 'late payment' note on my/our credit history?

I hope someone out there can help as I'm beside myself with frustration at how stupid the banks can be and in the process wreck my credit rating!

Many thanks,

Noel

beecher

You need to sort out the date your money transfers, as this will probably happen again in the future - particularly if the 1st is on a weekend, or if there's a bank holiday. Two days isn't a big enough gap to make sure this doesn't happen again - either put some funds in the account for emergencies, move it earlier, or ask Barclays if you can move the date the mortgage is paid.

I don't see how you can change the late payment note as you did pay the mortgage late - do Barclays give a commitment to have the standing order in the account by a certain date? If not I really don't see what you can do, other than what I've already posted.

I wouldn't have thought it'd make a huge difference to your credit rating, but I'm sure someone else will tell you for sure.

Phil777

noel7748 wrote: »

Hi all,


1. Is having a late mortgage payment worse than one on a credit card?

2. How badly will this affect my credit rating?

3. Is there anything I can do to 'repair' or alleviate the damage already caused?

4. Which bank is to blame, and is there ayway I can ask them to sort out the 'late payment' note on my/our credit history?

1. Yes

2. Depends on what you class as bad. Late/Missed payments are what is classed as delinquency rates, i.e. the stages prior to defaulting.

3. As above sort your payment dates out.

4. If you can get one of the companies to admit fault and then request a letter to confirm this. An underwriter should/may take this into account when going for your loan. However lenders nowadays are refusing credit for minor indescretions. You'll need to approach them to find out if it will affect you or not.

GSXRCarlos

From what i understand, it's better that you paid late than not at all.

Change your payment dates to give you 5-7 days, and mention it to whoever might to credit checks.

Also try the experian credit check (link through main MSE site, make surre you do the free trial) and see if it appears on there, that way you'll know yourself before anyone else runs a credit check)

Mrs_Bumble

Always remember that although online bank accounts may show transfers etc on the weekend the actual transactions go through on the next working day.

So standing order set for the 1st, 1/8/09 was a Saturday and so the transaction went through on Monday 3 August, in my experience standing order transactions are usually processed at the end of the banking day and direct debits are the first transaction in the day. Therefore the lender requested the funds before the standing order transferred into your account.

Who is your mortgage lender? Ask them when the mortgage payment cut off date actually is?