Letter of explanation for 2 credit card late payments?

Manchesterfemale79

Hi

I really need advice as my mortgage application after having a full credit check with the has been referred to the underwriters and the mortgage advisor has asked me to email him with an explanation as to why I have two late payments on a credit card. The thing is there is no valid reason it's my own fault I just forgot. I have drafted an email which I'd be happy for someone to look after but what can you really say when you just forget. Both late payments were over 2 years old and all my current bills have been payed on time since.

Help!

bedfordshireboy

Working in financial services I see this most days. Unfortunately the 'I just forgot' will not sit well with lenders as it brings your financial acumen into question.


However as it was 2 years ago they may take a view on a case by case basis. It will depend on all the other variables that make up your application, LTV, income, deposit (saved or gifted), bank account conduct and overall credit history.


Im assuming the missed payments were not disclosed on application hence they will ask for an explanation - sometimes there is a genuine reason (illness etc).


Good luck.

Thrugelmir

Best to be honest and conciliatory at the same time. You made a mistake and have set up a direct debit mandate so there will be no reoccurrence in the future.

ACG

You have to give a letter of explanation for a late payment?
Ive never come across that before.

I would just say a genuine mistake, its not through a lack of funds and you have now set up a DD to ensure it does not happen again? (assuming you have).

Wozza85

Santander asked me for an explanation over 2 bank charges and why partner went over her over draft once.

I told them my partners was an accident and was rectified immediately and didnt have impact on credit file as it was sorted ASAP and for me it was because i changed water supplier and they didnt take my details off the system and tried charging me and i didnt have the funds!

They were happy with explanation and accepted mortgage.

Manchesterfemale79

Thanks.

I have been honest and basically said it was an oversight on my part due to it not being a regular payment but that I have set up a direct to stop this from ever happening again and for the last two years all my bills have been paid on time.

I just hope I'm alright..........

Manchesterfemale79

I also added the part that it was not due to lack of funds as they can see that as I bank with them.

I just hope honesty is the best policy....

Wozza85

Manchesterfemale79 wrote: »

Thanks.

I have been honest and basically said it was an oversight on my part due to it not being a regular payment but that I have set up a direct to stop this from ever happening again and for the last two years all my bills have been paid on time.

I just hope I'm alright..........

I'm sure you will be fine as it was 2 years ago and hasnt happened since.