Credit check rating and possible mortgage refusal?

belfastguy30

I am currently trying to get a new mortgage deal with another provider to buy a new property and rent out my existing property but I have concerns in relation to one late credit card payment last month causing problems with getting a mortgage. I have never missed one payment before in the past 15 years until I took out a new credit card in March and went on holiday before setting up a direct debit which meant that I missed the April payment. I'm worried that some lenders will turn down any mortgage application or not allow a 90% mortgage for this reason.
I have just carried out the £2 online Equifax report and it shows everything in green apart from credit agreements which in a yellow for caution colour on the overview page but when I go into that section of the report it shows everything in green relating to any credit card payments over the past number of years back until 2009 apart from that one late payment in April of this year.
I know that mortgage providers are a lot stricter these days but are they all likely to be so strict when it is clear that this has been the one and only late payment? Are any mortgage providers slightly more lenient about this than others in anyone's opinion.
I have also just requested an experian report but it will take 5 days for the PIN code to arrive.
Thanks for any advice.

monty-doggy

I just got accepted for a mortgage with two queries on my credit file, one was a missed payment and the other was a dispute I had over a discount I applied to a purchase and they didn't honour it. If you try both equifax and experian, they use different criteria and my report was better with one than the other. My mortgage broker then found a mortgage company that use the one where I scored better. To be honest I was really surprised I got it as I get refused for everything!

belfastguy30

Thanks for that! At least that sounds positive! Had been inquiring with a mortgage company this evening who said that the one late payment could cause a problem at the application stage but hopefully they wont all be like that!

Riggster

1 missed payment in 15 years is pretty good don't you think? Better than 99%?

I've had credit cards, loans, mortgages etc for ten years. Stupidly, last year I was late paying two credit card bills by a few days. No financial reason, just distracted. I checked my credit report and it was still extremely good. I've had no problem at all getting a new mortgage for the house I'm about to buy.

Don't worry.

belfastguy30

Thanks for the positivity! I think i'm just at that anxious stage where I want to get everything sorted but keep hearing of other peoples' tales of misfortune!

FionnDaisy

monty-doggy wrote: »

I just got accepted for a mortgage with two queries on my credit file, one was a missed payment and the other was a dispute I had over a discount I applied to a purchase and they didn't honour it. If you try both equifax and experian, they use different criteria and my report was better with one than the other. My mortgage broker then found a mortgage company that use the one where I scored better. To be honest I was really surprised I got it as I get refused for everything!

Hi monty-doggy. Which mortgage provider did you go with? My husband has one month late payment on credit card (similar reason as he was distracted with a family illness). Nationwide have given us a decision in principle - but which other lenders do you think? HSBC said no.

monty-doggy

Mine is woolwich from barclays. They have been brilliant. Funny as it was barclays who refused me a barclaycard about 10 months ago!

ajayre

Why not go to a no-fee mortgage broker such as London and Country? They seem to know the lender's criteria well so they can find the right lender for you.

Andy

Riggster

Further to that get a personal recommendation for a local independent no-fee mortgage broker?

Mine is great and has sorted my last three mortgages out.

She is paid a fee from the company who's mortgage you go with, but has access to loads more mortgages than me or you can find on t'interweb.

She relies on her reputation and repeat business.

monty-doggy

I agree with the above, I used a local independent broker. He really knows his stuff and has done all the hard work for me.

Spitroast

Careful. L&C do not search the whole market, neither will independents - no matter what they tell you. They work with a handful of lenders whom they receive commission off if they sign people up to their deals. Yes, they will have others offers to show you but they will always sway you toward their best commission ones. Don't forget they are a business out to make profit.

They're not all bad, good for complicated matters or helping push through quickly with their contacts, but if your mortgage position is straightforward you will find better deals yourself and likely save yourself a couple of thousand!