2 Missed Payments - Ruin My Chances?

Picky

Hi everyone

I'm considering getting a mortgage soon for the first time. In March this year, I changed my bank account and all my DDs and SOs were moved over by the bank. Unfortunately, two of my DDs weren't met by the bank (Virgin Media & Barclaycard). I paid these with my debit card when the companies phoned me and thought nothing of it.

This week I've checked my credit history on Equifax (via Quidco for £5 cashback!) and I noticed that both companies have put a yellow mark on my history for that month.

Given that I have NEVER missed a payment on anything and the rest of my credit history is perfect, will this affect my chances of getting a mortgage soon?

Thanks!

dunstonh

Late payments, especially recent ones are disliked by lenders and you will see a number close their doors to you at this time. It really depends on how the other areas stack up and if you can get an underwriter to take a view on it. If you are pushing limits on income and loan to valuation then you will find less lenders will be interested.

holly_hobby

With an other wise impeccible record, both pre and post this event - and the reason being a reasonable one, you shouldn't have too many issues.

You may wish to consider a DIP with a lender (whom peform a full payment profile check, not just a public forum seach - which won't reveal the late payment record), including an explanation WITH the app re the late payments - before you start serious house hunting.

A whole of market broker will be happy to assist in mediating and locating the most suitable lender and product given your circs.

(lenders whom individually undewrite and don't credit score, such as Ipswich BSociety, and the smaller BS's - may also be worth considering in addition to/in place of those lenders who do).

Hope this helps

Holly

jamesd

Why weren't the direct debits paid? Did you have the funds to pay them in the account? If yes then the bank is at fault and you may be able to get them to explain this to the companies concerned as part of a request that they change the status from late to unspecified.

By way of contrast, when a credit card company changed my card number after a takeover I proactively phoned the companies that were being paid that way and asked them to tell me if their payment went through or not the day after it was normally taken, then made any required payments before the due date. No negative entries on my own report from those not migrated.

The banks are supposed to get moves right but the credit record is supposed to show whether you stayed on top of things even during problems as well.

Best to try to work with the card companies and bank to get the record adjusted if you can. Recent late payments aren't a good sign and you should get them removed if you can.

If you do change bank accounts again you might consider moving direct debits yourself and keeping sufficient money in both accounts to that direct debits will be paid whichever account they end up coming from during the transition. There's also a new system being introduced soon that should help to reduce the chance of glitches, except due to things like insufficient funds in an account.