Gutted that late payment might affect mortgage - any advice please?

Hallion

I have just created a free account with Noddle. To my surprise it seems to be as useful as Experian. Also to my surprise was a late payment in May 2015 on my Bank of Ireland account which has obviously affected my credit rating.

I've had an overdraft facility with them for years but back in March they sent me a letter to advise they had withdrawn the facility and requested full payment. No problem, I logged into my account, checked the balance and sent the payment in full from my Santander current account. The balance then showed 0.

I logged back into the Bank of Ireland account on 11th May to make sure there were no additional debits and they charged an interest payment of £8.64 right at the end of April which made my account negative. I paid it right away and the balance went to 0 again. I thought that would be it sorted once and for all.

However it has been logged as a late payment which is rather frustrating. To make matters worse, there was another interest charge of £2 right at the end of May which I cleared in early June. I'm worried this will be another late payment as well. I've transferred an additional £10 into the account as a buffer in case there are more interest payments taken.

I'm worried this will affect me when I go to remortgage next September. My credit history is perfect apart from this so I'm pretty gutted and annoyed this has happened.

Do you think this will cause problems when remortgaging? Is it worth asking the bank for a letter to explain what happened in case future potential creditors ask?


Here is a screenshot of what Noddle shows for the missing payment (even though the balance shows 0).

binerds81

could you ring them ans ask for someone to look into the situation, as in this kind of case they may remove the late payment for you as a good will gesture? I'm sure if they looked at it they would agree that it wasn't really "late" and was just an unexpected amount after removing the o/d that was paid as soon as you realised.

Teqpro

Hi,

Well you said any advice and i will give it,

Its simple close the account down asap as your rating will go back up. if i was you i would switch to the halifax and get £100 cash-back and they may only do a soft search.
(I'm no expert nor do i work for halifax, i just read a lot of forums)

kingstreet

Success or failure is dependent on the overall quality of your application and there is no way you could cover everything on such a forum.

So there's no way of establishing if this will have a big enough impact it tips the case from accept to decline.

binerds81

If you close your bank account down though, the late payment will still show for 6 years. I would ring them and try to ask them to be understanding and remove the marker first as this might resolve the issue before you have to do anything drastic like switching banks - only my opinion though!

Hallion

Thanks for your replies.

Just to clarify, the Bank of Ireland account is now inactive in that I have no money going in or coming out. I would be more than happy to close it if that would help my rating.

I moved house last September and had to leave First Direct as I needed a new mortgage urgently due to tight completion requirements (FD had a 2 week waiting list at the time). I want to move from Halifax back to First Direct next September to make use of the offset mortgage facility that was saving me a lot of money each month in my last property.

I rang the Bank of Ireland and they were surprised that going over by a few pounds due to interest caused a late payment on my credit report. The Bank of Ireland guy said it might be worth contacting Experian or Eqaifax etc to explain and possibly have the late payments removed? Would there be any value in doing this?

Westminster

No - the only people that can remove an entry like that would be the company that added it to your report.

Experian or Equifax can't do this for you.

The fact that the BOI guy suggested this indicates he has no idea what he is talking about.

Teqpro

binerds81 your right it will still show but it won't be active and will be listed as closed.

A similar thing happened to me with a credit card and i received an apology but they never removed my late payment mark. I closed it and applied for another, to my surprise my rating went back to 999 no late payments in my history.

densol_2

I would write a complaint to the bank of Ireland and request that the late payment marker is deleted as it was not deliberate etc

nomoneytoday

IMHO a single one month late marker shouldn't make a huge impact by itself