More mortgage application questions...

milliebear00001

Hi there

I received some good advice earlier re. mortgage income multiples. I am thinking of applying for a mortgage in the next year or so, have a deposit of around £20000 and a salary of £22000. I've just applied to see a copy of my credit history via Experian and am not best pleased to see that despite having a wealth of extremely well-managed credit (several credit cards/store cards/mail order accounts etc) without any defaults at all over a considerable number of years, I also have two registered 'late payments' both registered as 'status 1'. The lates are both on my Barclaycard - the credit card I use all the time - and are completely my own fault. The earlier one is from several years ago and I had forgotten about it - just forgot to pay until I received the reminder letter. The other is more recent, where I accidentally assigned my payment to my husband's Barclaycard instead of my own on the online banking system. I am SOO annoyed with myself because they were both completely down to disorganisation rather than any inability to pay.

How much will this affect any mortgage application? Is there anything I can do about them? The overall status on the Barclaycard section of my Experian file is 'satisfactory', but I don't know whether than counts for anything at all.

Thanks.

opinions4u

milliebear00001 wrote: »

How much will this affect any mortgage application?

Hard to say. Bigger deposit, lower income multiples etc could make it no problem at all. Small %ge deposit, income stretch etc would make a lender worry.

Is there anything I can do about them?

They are a factual record of what happened. Just make sure you pay on time in future. Perhaps a direct debit for the credit card would benefit you.

The older the missed payments, the better.

Good luck.

milliebear00001

Thanks - the report only seems to cover three years, and the first page only has detailed info for twelve months. I am slightly confused because when I asked for a copy of Experian's credit score, they scored me 995 out of 1000. They seem unconcerned by the late payments, as do the other companies I have applied for credit agreements with. I do though, recognise that companies differ. Would a broker know which mortgage companies would be less bothered by such missed payments? I am concerned about applying and being turned down as I know this in itself won't help my credit rating.

badmoon

Unfortunately, the credit score experian does on their site counts for very little except to make experian a bit more money (in my opinion) sure it's a handy little thing to know but each bank/bs has their own unique scoring system.

At best it's a handy thing and will at least give you a generic idea of whether your credit rating is good or not but when it comes to mortgage offers/decisions etc., don't set too much stall by it.

Good luck with your application though. Fingers crossed all will be okay. BTW, deffo go with a broker who knows the whole market of mortgages out there. I had a great broker and a once chequered credit history, there was still 1 default showing on my equifax file last October (it was due to come off in January though) and the broker I ended up with really encouraged me to apply for a mortgage and I managed to get one. The first broker I saw though was really discouraging.