the effect of late/missed payments

midlander81

Hi,


I know that lots of similar questions have been asked but...


Do late payments have less on an effect as they get older? On my Experian report it shows the number of late/missed payments in the last 12 months. Do they have less on an effect after a year? I know that they remain on file for 72mnths,


Thanks


midlander

gestion

I am quite interested in the same question.

I have some defaults registered against me between 2009 and 2011 and I want to apply for a mortgage (via a broker).

I really hope that we are able to provide a lender that takes our current situation into consideration more than what happened up to 6 years ago.

I guess the answer is it will vary from lender to lender; but I do hope most would consider the most recent data to be the most relevant.

amnblog

As time passes you may have more lending options.


For mainstream lenders you will probably need these to be 3 years historical to start passing credit scores.


Other more specialist lenders are not going to worry about missed payments over 12 months old but defaults (as mentioned by poster two) will need to be 36 months old to stand a good chance of being accepted.


Each case, you must remember is treated on it's own merits and sometimes quite minor timing issues can trip a case over.


Sounds obvious but lenders want people who pay everything on time.

Experian_company_representative

Hi Midlander81,

It is always up to the individual lender as to what they are prepared to accept, generally though as both late payments and defaults get older they will have less of an impact on your chances of being accepted.

As Amnblog has said, and occasional late payments that is over a year old shouldn't cause too many problems, while defaults will need to be a few years old.

Kind Regards
Neil

Mortgage_Mark_2

Not much more to add, although pay absolutely no attention to the laughable Experian credit 'score', as until they start lending money this is absolutely worthless - it's a summary of their assessment of your credit file.

For instance, I had a client recently declared bankrupt in 2012...with a 'score' of 999. Go figure.

amnblog

My client had 999 with 3 CCJs inside 36 months totalling +£7,000

Thrugelmir

gestion wrote: »

I really hope that we are able to provide a lender that takes our current situation into consideration more than what happened up to 6 years ago.

Part of the process is actually profiling you as a potential borrower. People fall into distinct camps as human beings when it comes to the manner and attitude with which they manage their personal finances. Times does heal. Not everybody learns from their mistakes and experiences though.