2 Missed catalogue payments,will this effect mortgage application?

JasonR1987

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opinions4u

Very simple.

If you demonstrate that you are unable or unwilling or simply too disorganised to pay a catalogue on time, most lenders will view the idea of lending you tens of thousands of pounds to buy a property as completely insane.

Shared ownership or shared equity properties tend to have a limited number of available lenders. Once you've been declined by a couple you could well have run out of options to fund the purchase of this house in the current market.

Get your act together. Pay all your bills on time and build up as big a deposit as possible. The smaller your deposit, the bigger your debts and the more recent the missed payments - all significantly likely things that can stop you getting a mortgage.

My partner and i have just reserved a new build property

I hope you haven't actually paid a deposit to reserve this property. That money could disappear.

Sorry if this post isn't happy reading. But hopefully you will get your finances in order as a result.

themull1

you should have already had a mortgage in principal in place before reserving a property. As the previous poster says, what happens if you can't get a mortgage?

DVardysShadow

I don't mean to start a moral crusade with this. But with a household income of £67,000 you should not be taking catalogue credit. Most catalogue stuff is stuff you should be able to buy outright.

If I was underwriting mortgages, and I saw missed catalogue payments in a household with £67,000 pretax income, personally, I would be very laid back about the fact that the payments were missed. My big question would be what kind of household financial management requires catalogue credit on that income and I would rate you as a poor [but not the worst] risk. On a household income of £23000, I would be more concerned that the payments were missed than that catalogue credit was being used.

blueberrypie

DVardysShadow wrote: »

I don't mean to start a moral crusade with this. But with a household income of £67,000 you should not be taking catalogue credit. Most catalogue stuff is stuff you should be able to buy outright.

That might be so, but people often take advantage of special offers on catalogue items - a friend just got 25% off a dishwasher priced £580, using a first-order discount. Some prefer catalogue shopping because they don't like to buy on-line and catalogues let them order things to try at home and return them at no cost if they don't want to keep them. (I have a family member in her 60s who routinely orders clothes and shoes in two or three different sizes and returns those that don't fit.)

I don't know if lenders see "catalogue credit" as a negative thing or not, but I don't think it's justified to assume that its use must mean the person has financial difficulties.

ETA: Missed payments = whole different ball-game.

DVardysShadow

blueberrypie wrote: »

That might be so, but people often take advantage of special offers on catalogue items - a friend just got 25% off a dishwasher priced £580, using a first-order discount. Some prefer catalogue shopping because they don't like to buy on-line and catalogues let them order things to try at home and return them at no cost if they don't want to keep them. (I have a family member in her 60s who routinely orders clothes and shoes in two or three different sizes and returns those that don't fit.)

I don't know if lenders see "catalogue credit" as a negative thing or not, but I don't think it's justified to assume that its use must mean the person has financial difficulties.

You are failing to draw the distinctions between catalogue purchases and catalogue credit. With interest rates being so low, there is no point in deferring payment by catalogue credit in order to make interest on the money. At £67,000 coming into the house, it is far wiser just to pay it and not take the risk of ruining your credit record.