Early Arrears on Mortgage

WifeandMummy

Hi,

In 2009 my husband was in hospital and I was unable to make our full mortgage payment one month, however I did pay half and then I arranged to pay a little extra each month to pay the remaining half off, what I stupidly didn't realise was that it was showing as early arrears on my credit file for a few months until I was up to date. I know my mortgage is the worst thing I could have arrears on and just wondered how long it would be before anyone would even consider us for a mortgage to enable us to move, will they need to drop off my credit file completely and once they do will they ever be referred to again when trying to move?

Hope that makes sense, thank you x

ACG

What sort of purchase price/deposit are you looking at?
I have one which went to offer last week at 65% LTV at a rate of 3.49% although its possible to get similar rates up to 80% LTV from memory.

WifeandMummy

Thank you for the reply.

If I am being completely honest I haven't given the specifics much thought, as I assumed we had just cocked our chances up with the arrears, so we have be focusing on clearing our debt and lowering our outgoings. So if we can save a large deposit we may be ok? we had planned to start saving once all our debt was cleared which we are on plan to do by December this year but I am wondering if we should start saving now and then up it once the debt is cleared, obviously if I do it like that though the debt will take longer to pay off but it is all on 0% so not gaining interest each month.

Dr._Shoe

Are you sure the arrears are on your credit file? Did the lender agree to your payback plan or was it kind of forced on them? Some banks won't notify the credit reference agencies unless you default on any agreement to catch up. AFAIK if you get back on top within 6 months you'd probably be OK depending on the lender of course. Moreover, in doing so it does reflect favourably that you're a responsible borrower.

WifeandMummy

Thanks Dr Shoe. Its definitely on my noddle account and of course my husband's too and yes they agreed to it but it was only ever put in place over the telephone.