Late Credit Card Payment - Effect on Application?

newbieinvestor75

Hi

I am just about to apply for a mortgage with Halifax however have foolishly missed a payment on my MBNA credit card (min payment due approx £40 due on 28/5 paid on 9/7 - my only credit card with cr limit of £1k)

MBNA have confirmed that as the payment was 10 days after the due date that they will have notified the credit agencies

Is this going to stuff my chances of obtaining a mortgage?

I am a first time buyer and am looking to obtain a shared equity mortgage with the Halifax with whom I currently hold a current, savings and ISA account. I have no other debt.

Regards

JD :eek:

newbieinvestor75

Sorry payment due in June not May

newbieinvestor75

Help! Please! Anybody?!

pinkqueen

Hi jd - we are in a similar position, looking to apply for a mortgage in the near future and stupidly missed a payment on the CC.

We were worried like you, however when we ran the credit report it didn't show up. My first piece of advice would be to sign up to experian or similar to get yours and see if it is on there (may be too early for this just now but in a week or so). This will give you an idea.

Regardless, when we went to see a mortgage advisor and explained that we were still worried he said while there is a chance the mortgage company could get funny about this late payment, if the rest of your payments are on time and you have a good record you can put forward a case to them on this basis for them to consider.

Anyway this is just my personal experience, no definite answer I know but your debt is fairly small and if this is your only late payment I'm sure you can argue your case.

Good luck!

Experian_company_representative

Check your credit reports to see what's been recorded. Lenders have agreed through the credit-data-sharing body SCOR to provide a period of grace and not to register late payments that are quickly rectified (usually with 7-10 days). So you might be pleasantly surprised. But if not (and I hope you are!) a late payment may well put a spanner in the works. What you should do in that case is explain this to the mortgage provider up front and offer proof that the payment was made and was only just late. I suspect if everything else looks ok they'll give you the benefit of the doubt.

James Jones