1 late payment, will that affect my mortgage application

xzhuang

Hi

I recently had one credit card late payment (happened in October). It was a bank of Scotland credit card. I have cleared the payment in a week's time. The late payment was because of the insufficient fund on my direct debit account, which resulted in an unsuccessful direct debit. I have spoken to BOS, and they refunded me the late payment charge since I have had a clear record with them in the past 6 years.

The problem is that the late payment has now shown experian which gives me a bad credit score of 708 (poor).

The trouble is that I am going to buy a property for which I would like to borrow about £200K from Halifax (together with my wife). My wife and I have a permanent job in the Uni. Our annual incomes are £38K and £30K. We will pay about 25% as deposit.

I wonder is there any chance for me to get the mortgage, considering Halifax and BOS are the same bank and they may be happy with my previous credit record.

Thanks.

amnblog

Possibly, but this may cause an issue

It dependants on the entire case, not just this factor.

They may be a wiser option as a lender for this case.

Give a copy of your credit files to a mortgage broker and get some advice.

Dave_Ham

Getting advice seconded, although absolutely worthwhile getting the credit file reflective as being back on track before any application.

Otherwise, your most recent payment would show as in arrears and this is not a positive..

All the best

xzhuang

Thanks mates. The credit card payment is already cleared. An the recent experian report gives me a poor score, 708.

Is it still worth to have a try or should I just wait for another 6 months so that hopefully things can be better..:(

Experian_company_representative

I don't think the low score is entirely due to one late payment. There should be other guidance on what is affecting the score on our website. While this is only a guide score it is likely to improve your chances of being accepted if you follow the guidance provided.

James

xzhuang

Hi Experian,

Yes. You are right, there several other factors - but the mainly reason in the late payment last month (previously, I was in the fair region).

1. Not register to Electro roll - not applied, because I am not a British Citizen
2. I have recently open a credit card (although my debit-credit is ok, 25%)
3. I have no successfully settled credit account (I don't know what this means to be honest!)

Positive points:
The usage of your available credit indicates a lower risk
The value of your highest credit limit indicates a lower risk

Mokka

We had a similar problem and the late payment for some reason showed as missed. The bank corrected it and the score shot up.

Are you sure your late payment is not appearing as missed?

Also there are letter templates you can use to ask the bank nicely to remove the mark on your CR- they don't have to agree though.
There is something you can do about not being on the the Electoral Roll- read up info on this website (Martin's guide I think?)- from what I remember you need to provide CRAs with proof of your address.

If I was you I would speak to a broker. The bigger the deposit the less the late payment matters.