Should I wait?

buzzyzoe

Hi all,

Hoping for a bit more advice!

I've made an offer on a property, which I'm hoping will be accepted today. I have a mortgage consultation appointment with HSBC next Saturday. Dependent on where I'm at in terms of an offer, I will hopefully be able to actually apply for the mortgage at this appointment.

I checked my credit history yesterday. I didn't do it before, as I assumed (I know - never assume. Lesson learned for next time) there wouldn't be anything of interest on there, as the only bill I've ever paid is a mobile phone contract (still living at home). I was surprised to find that I have an apparent late payment to Orange from may 2010. The account was opened in April 2010, and I have checked my bank statements for April and May 2010, which both show a direct debit to Orange on the 20th. To this day the direct debit gets taken on the 20th, so I don't see how this can be a late payment. I have emailed Orange to let them know, and hopefully they will rectify this on my account. However, I'm guessing it's wishful thinking for this to be sorted out by Saturday. Is it worth delaying the actual mortgage application until this late payment is removed from my credit history?

Any help greatly appreciated as always!

amnblog

HSBC are fussy fussy fussy and you need your credit file as smart as possible.

Keep on to Orange and resolve this if you can but be aware that the most common issues on credit files are caused by mobile phone contracts. The providers do not have a good record on resolving them.

Fotunately, there are now lenders that will ignore small phone bill late payments - but HSBC is not one of them.

buzzyzoe

Thanks very much for the info!

I am really hoping I can get it sorted out.

I wonder if it would be worth cancelling the appointment with HSBC and trying my luck with a mortgage broker instead.

My LTV will be very low (30%) and I don't have any other late payments, defaults etc - will this mean there would be a chance of HSBC accepting me, or would the late payment make it a definite no, even though it's from over 3 years ago?

buzzyzoe

I've given HSBC a ring and asked what they think the effect of this would be. The man I spoke to said that it definitely wouldn't be an automatic no, obviously it could be declined but he said as it's only one and it's from such a long time ago, he can't see a problem.

amnblog

Yes, it's no lost to him to say that Zoe.

If you cancel your appointment with him, he has to find another one to make his stats up for his Sales Manager.

Sort this credit file issue out first if you can.

buzzyzoe

That's a good point! I will definitely try and get it sorted out first.