renewing my mortgage with poor credit rating

nikki13_2

Right folks here goes....

I am in a panic!!!

Ok, let me just introduce myself as the most forgetful person in the world!!! I recently had a dorothy perkins account and the balance of this account was approx £260 in total. I had thought I had set up a direct debit on this account but turned out not to be the case. Because I thought a direct debit was set up on this account, when I received statments sometimes I wouldnt even open them I would just file them away into my folder.

I was mortified the other day when returning home from work that my account had been in arrears for 4 months and that santander had transferred my account to "viking collection services".

I have since then called viking and set up a direct debit with them for 40.00 per month so I can pay the balance off quickly.

This however is my concern...

I have a mortgage with my husband and pay approx £1200 per month and have been doing this for the past 3 years with payment made on time and no missed payments. I also have a joint loan with him with the same lender as the mortgage and again payments always made on time with none being missed.

In addition to this I have a credit card which I pay monthly. I have called dorothy perkins and have asked if they wouuld accept me back as a customer as long as I set up a direct debit straight away before purchasing and they have said that as this situation has occurred then this will affect my credit rating for the next 6 years.

So my main worry is, my mortgage is up for renewal in September 2010 and Im worried that because of this my mortgage will not be accepted and then what will happen......

I have a very good job - and I earn approx £1700 per month but have a wage rise in april and august so by september next year this will have increased again.

Please help me with your advice!!!!!

Thanks Nikki

anselld

Presumably by "my mortgage is up for renewal in September 2010" you mean fixed rate is ending. After this you will just go onto a standard variable rate. Nothing else will happen unless you want to take out another fix and that may well not be a problem if you stay with the same provider.

You might have problems if you apply for new credit anywhere. If so you can check your credit file as per Martin's advice pages.

_Andy_

Your mortgage doesn't 'renew' - it wil revert to the SVR as per your mortgage offer/KFI.

nikki13_2

Thanks I have just got mortgage conditions to read through, so I will not lose my house!!!!

I must also add along with forgetful I can also be dizzy!!!

I'll just have to deal with the credit issue but I can cope with that

Thanks again!!!!

_Andy_

NIkki - forgot to add - regardless of your credit, if you're not borrowing any more, it won't affect what your current lender will offer you so you can always ring them to see what they can do.
best of luck