Getting a mortgage with late payments?

catlady28

Hi

I know this subject has been covered a lot on here but I was hoping to get some advice specific to my circumstances.

Myself and my partner are first time buyers, we have had an offer accepted on a house. We got an agreement in principle from Natwest for 103k, we have a 75k deposit and would be looking to borrow 100k.

I have checked my credit reports with Equifax which showed no problems, however Experian is showing two late payments from Yorkshire Water. These late payments are shown on my report as three late payments as one crossed over into a second month. This was a complete oversight as I simply forget to pay the small amounts and only have myself to blame (although I wasn't aware they shared info with credit reference agencies but that is another story!)

My credit report is otherwise fine with many years of on time bill and credit card payments.

I am now really worried that my mortgage application will be declined.

How much will the late water payments affect my ability to secure the mortgage? Any advice will be greatly appreciated.

Thanks.

monty-doggy

I am FTb too, and have two missed payments on an old catalogue. Your advantage is your sizeable deposit, I had 53k deposit on 167k house and even though my credit rating was only good not excellent, I was still accepted

hotchili

Hi monty-doggy, which lender did you approach and did you go direct or through a broker?

Thrugelmir

catlady28 wrote: »

How much will the late water payments affect my ability to secure the mortgage? Any advice will be greatly appreciated.

Thanks.

In isolation probably not at all.

Utility companies have only recently started to upload data to the CRA's. The net result is that lenders are going to be able to obtain a far better picture of you as a potential borrower in the future. So I would recommend setting up direct debits to pay for utilities going forward, to avoid more markers being recorded. Stretching payment out isn't really of any benefit.

catlady28

Hi guys thanks for your replies. i passed the credit check stage so they obviously did not matter in my case. just got to wait to see if they think my bank statements are ok now (not sure what they are looking for, nervous!)

monty-doggy

I used woolwich from Barclays. My bank statements are a joke. No savings, and it looks like a shopaholic from the statements lol. Mine all went through fine. Don't worry!

Edit: used a broker. Much easier And he was fab!