1 Late payment that bad?

Veed3779

Hi, first post so go easy!😁
I was just wondering how bad 1 late payment would affect me getting a mortgage in the future.
It happened back in August this year i miss managed my bank account and my loan payment got returned, as soon as I was aware I contacted the company and made payment over the phone, I asked if it would be registered on credit file and he said I doubt it as its not in arrears, but I noticed last month it has been given a red 1 for that month. Now we are not looking to move for at least 12-18 months maybe more, but the loan finishes in December this year and as I understand when the account is satisfied it will show the last 12 months of payment history so will have a missed payment showing for 6 years until the account drops off.
The annoying thing is I've had the loan for 3 years and have never missed a payment and am almost done, will this one missed payment cause a problem in 18 months time?

Gaz83

Veed3779 wrote: »

Hi, first post so go easy!😁
I was just wondering how bad 1 late payment would affect me getting a mortgage in the future.
It happened back in August this year i miss managed my bank account and my loan payment got returned, as soon as I was aware I contacted the company and made payment over the phone, I asked if it would be registered on credit file and he said I doubt it as its not in arrears, but I noticed last month it has been given a red 1 for that month. Now we are not looking to move for at least 12-18 months maybe more, but the loan finishes in December this year and as I understand when the account is satisfied it will show the last 12 months of payment history so will have a missed payment showing for 6 years until the account drops off.
The annoying thing is I've had the loan for 3 years and have never missed a payment and am almost done, will this one missed payment cause a problem in 18 months time?

Every lender is different. What is important to one lender might not be so important to another lender.

Generally though, one missed payment isn't too bad. It's more patterns of missed payments that lenders look for.

Veed3779

Gaz83 wrote: »

Every lender is different. What is important to one lender might not be so important to another lender.

Generally though, one missed payment isn't too bad. It's more patterns of missed payments that lenders look for.

Thanks, yeah I thought that might be the case but was worried about saving for the next 18 months when loan finishes then hit a wall when applying for mortgage coz of one payment.
I was considering writing to see if they would remove it as a good will gesture as I've never missed before. It's a shame it happened in the last six months of the loan as if it had happened last year as I understand credit file shows last 12 months of payment history? So would have rolled off by now and the six years it remains on credit file after settled would show 12 months in the green.
Guess I'm just going to have to wait and see and maybe discuss with a mortgage broker nearer the time.

Archi_Bald

Although technically possibly correct (or may be not), it seems a bit harsh if you got a default after they said they wouldn't think you'd get one. Even CCJs can get removed if you settle your debt within a month.

I would try and ask them to consider removing it as a goodwill gesture. Worst case they won't do it, but at least you have tried.

Google for "removal of default from credit history". Finds e.g. http://www.learnmoney.co.uk/credit-file/remove_default_notice.html

http://www.experian.co.uk/consumer/questions/askjames282.html

Veed3779

Yeah I will look into asking them to remove it thanks as you say the worst they can say is no so won't be any worse off.
Does anyone know if a red 1 in last 12 months payment history on a closed and settled account would have the same effect as on an open active account? Just trying to work out how much of an impact it will have should they refuse to remove the red 1.
I'm guessing that the fact the account will be closed and settled should help and by the time we apply for a mortgage it would have been closed for over a year but I have no idea how mortgage companies use your report to make a decision, and as said everyone of them is different.
So annoyed with myself for letting it happen as since we moved here 5 years ago I paid off both my loans and a credit card and never missed a payment till now.

Archi_Bald

I doubt anyone would be able / willing to tell you for sure as different lenders have different approaches to assessing your credit risk, and they are keeping these confidential to themselves. But even if somebody would post the exact criteria here now, these could, and probably will, change over time.

Veed3779

Cheers thanks for the help, guess all I can do then is hope it doesn't affect the application when I eventually do moved will mention it to mortgage broker at the time though, and in the meantime I think I will write to Santander see if they will remove it.

nomoneytoday

IMHO a single "1" won't make a huge difference, unless it's part of a trend or pattern.

dotdash79

Depends on the deposit size 5% might means it gets rejected or it might mean that it's questioned more. 10% and more I don't think it would be an issue.

Hazzinho

One missed payment 12-18 months old will have zero impact, it will be obvious you forgot rather than couldn't afford to pay if you make payments on time from now on.