Bad Credit Rating on late mortgage payments

Xpander75

Hi there,

Hope someone out there can help and give me advice on best options to remove a bad credit rating?

Xmas before last I had a few under payments that went through on my mortgage when I switched from direct debit to a standing order. I received a letter from Barclays Woolwich stating I owed them £800 on mortgage due to under payments made on the last 2 months. As soon I recieved the letter I called them up an arranged to increase my monthly mortgage payments over the next 3 months to clear the debt then revert back to the normally amount, mainly because it was Xmas I couldn't afford to pay back all at once. I had a letter back from Barclays confirming this plan of action.

Then I find out a year later I have bad credit rating when trying to get a loan for a new car I require!

I called them back up asking why this was the case as even though I had fallen behind in payments for only 2 months that we put something in place to reslove. They said in letter they stated this MAY affect your credit rating which I wish had paid more intention too, otherwise I would have somehow found the money then and there to avoid a default notice for 6 years.

So do I have any option to remove this as also since this has happened I have split from my partner and need to think about getting a mortgage in the new future?

Cheers for any help in Advance!

GMS

What does your credit report say?

You cannot alter anything which has been correctly reported. You didn't keep up the payment arrangements so you have fallen into arrears.

Can't see why you could have any correct information removed.

ACG

If you had arraged it BEFORE you underpaid then you might have an argument. But you underpaid then set up a payment plan which they agreed to because they had to.

This might come across a little harsh but this was your mistake not theirs.

It doesnt mean you wont be able to remortgage but you will may well struggle to get a competative rate.

Xpander75

GMS wrote: »

What does your credit report say?

You cannot alter anything which has been correctly reported. You didn't keep up the payment arrangements so you have fallen into arrears.

Can't see why you could have any correct information removed.

A default notice for 6 years I believe and I know what your saying that it is correct but just thought as I put something in place and agreed it with Barclays to payback the arrears over next 3 months that they wouldn't put this on my file as bad credit rating. Just think it's a bit harsh as never had any debt issues before and really my fault for not realising the importance of not paying this back all at once and the ipacy it's now having on me!

Thrugelmir

Xpander75 wrote: »

mainly because it was Xmas I couldn't afford to pay back all at once.

From a lenders perspective this is where you saw your priority at the time.

A lender will therefore assume you would make a similar choice in the future if times got financially difficult.

Why should the lender wait for the money that's due. Defaulting on a contractual arrangement is a breach of trust.

This may seem harsh but is the reality of the situation.

Xpander75

So I take it from the coments so far I have no course of action to remove this on any grounds?

Thrugelmir

Xpander75 wrote: »

So I take it from the coments so far I have no course of action to remove this on any grounds?

Correct.

All you can do is maintain an impeccable record from now on.

GMS

What grounds do you think you have for removal of the information? From your original post I took it as you made underpayments after which the lender informed you. There was no agreement to make underpayments up front if I read it correctly?

Have they defaulted the account or is it showing as late payments?

Xpander75

GMS wrote: »

What grounds do you think you have for removal of the information? From your original post I took it as you made underpayments after which the lender informed you. There was no agreement to make underpayments up front if I read it correctly?

Have they defaulted the account or is it showing as late payments?

Yes correct no agreement up front!

Not sure how it's showing up! Does it make a difference?

GMS

You said it showed as a default.

A default is bad. Late.missed payments are not good but will have less impact than a default and take less time to lower the impact on future finances.

Get copies of your credit reports from Equifax, Experian and Call Credit

Xpander75

GMS wrote: »

You said it showed as a default.

A default is bad. Late.missed payments are not good but will have less impact than a default and take less time to lower the impact on future finances.

Get copies of your credit reports from Equifax, Experian and Call Credit

Cheers already done so!

So should this only be shown as a late payment default and if so are the consequences/impact less?