Late payments by wife

Tank4

Hi,
I am after some advice on some recent late payments by my wife that has affected my credit rating.
I am a serving member of HM Forces and have recently returned from a tour of Afghanistan, while I was away my Wife reopened a previously closed Next mail order account in my name without my knowledge or consent. Unfortunately she did not keep up to date with the payments and there is now 3 late payments on my credit report in the last 12 months. As soon as I found out I paid the outstanding balance in full.
I am considering writing to Next and explaining the circumstances and requesting that they remove the late payments from my file however although I know my Wife done wrong, clearly I do not want her to get in trouble or be prosecuted for what is basically Identify Fraud.
We are currently considering a Mortgage and with a Credit Score of 749 (Fair) and 3 late payments in the last 12 Months I can't help thinking that any application is likely to be unsuccessful.
Any advice from the experts out there would be very much appreciated.

somethingcorporate

Use a broker when you try and get a mortgage, they will help you.

I don't think Next would remove the markers without you taking action against your wife.

Thrugelmir

Implicating your wife will do you no favours. Unfortunately 3 late payments doesn't either. Use a broker as they'll know who the more lenient lenders are.

a4a

You are likely to open up a whole can of worms if you inform Next. They will not be interested in you or your credit file, only in themselves and may or may not prosecute (as they could be implicated as well for possibly failing to carry out proper checks), so best leave that one alone unfortunately.

As the others say, use a broker for the mortgage but with a 'fair' credit rating it may prove difficult until the late payments are much older and all also depends on what loan to value you are after, but thats another story and one for the broker to explain.

Tank4

Thanks for the fast replies and advice, looks like a letter to Next is a bad idea then, it is a shame as apart from the 3 late payments my Credit report is fine and I have no outstanding Debt.
I have heard using your credit card regularly and paying in full every Month improves your Credit score but not sure on how long this would take? I suppose there are no quick fixes.
Does anyone know of a website that could point me in the right direction for a reputable local Mortgage broker? I am a first time buyer so don't have any experience with Mortgage Brokers/Fee's etc.
Thanks again

a4a

You are right, having credit cards and paying back monthly helps improve your rating with lenders (although you do not necessarily need to pay the full amount, other than to save interest). However, you say you do not have any other debt which may be a negative thing, especially with late payments showing on the ones you do have.

I am not advocating taking out loads of debt, but you may want to consider getting at least one more cards, use it sparingly but pay it each month to show lenders you can manage your affairs.

However, in view of you wanting to get a mortgage, I would hold out until you have spoken to a broker as any searches now on your file will have a negative impact (which is wrong but thats the way it is).

I would just google brokers in your area and make sure they are IFA's, (Independent Financial Advisors).

Tank4

a4a wrote: »

You are right, having credit cards and paying back monthly helps improve your rating with lenders (although you do not necessarily need to pay the full amount, other than to save interest). However, you say you do not have any other debt which may be a negative thing, especially with late payments showing on the ones you do have.

I am not advocating taking out loads of debt, but you may want to consider getting at least one more cards, use it sparingly but pay it each month to show lenders you can manage your affairs.

However, in view of you wanting to get a mortgage, I would hold out until you have spoken to a broker as any searches now on your file will have a negative impact (which is wrong but thats the way it is).

I would just google brokers in your area and make sure they are IFA's, (Independent Financial Advisors).

The debt that the late payments is on is now paid in full, I also noticed that my Next Credit limit has jumped from £800 to £3600 since I paid the outstanding balance! I am assuming it is wise to close the account to reduce the amount of credit I have access to? I was going to close after I had requested the removal of late payments however since that is a bad idea I may close the account now.

Tixy

I probably wouldn't close the next account at the moment. I'd actually consider buying a couple more items and repaying in full on time so you get 'green ticks' for a couple of months which should help the missed payments look like an oversight rather than an indication of financial difficulties.

Speak to a mortgage broker with copies of your files, if everything else about your credit files and financial situation is good then within a couple of months or so, this may not stop you getting a mortgage (particularly if your are not trying to borrow a maximum ltv).

a4a

I agree with Tixy, I wouldn't close the account, its good to have some credit as mentioned before. I personally would even use it, maybe just spend £20 or so and pay it off each month (not that you can get a lot in next for £20!).

But as previously mentioned, dont do anything that affects your credit file (i.e. applications), until you've spoken to a broker. Did you google brokers in your area?

Tank4

a4a wrote: »

But as previously mentioned, dont do anything that affects your credit file (i.e. applications), until you've spoken to a broker. Did you google brokers in your area?

I have googled some brokers and saved a couple for future reference, trouble is we are currently in a Married Quarter in Hampshire and we are looking at buying in our home County of Essex so I am thinking it may be easier to get a broker there? I prefer to business face to face in a branch rather than over the phone.
My Military Career comes to an end next year after 22 years service and we want to move back to be closer to family.

Fruit_and_Nut_Case

Tank4 wrote: »

...Credit Score of 749 (Fair)...

Don't get too hung up about this Credit Score. You (and the CRA) are the only ones who see it. Potential lenders only see your Credit Report and make their own minds up.