Late Payment Markers

cakeforbrains

Hi there.

Are there any more-or-less-general rules about late payment markers and their impact on mortgage applications?

I've got it into my head that it's better for them to be over 24 months old??

We have, between us, about 3/4 isolated late markers that are 2-3 years old, and then a few that are about 5 years old. Our broker is chilled about it, but I'm getting more and more anxious. Should I be?

Files otherwise perfect. All debt paid off. Although about 18 months ago we had a three-month arrangement to pay on an overdraft. This is marked AP and was all adhered to.

LTV will be 75% using help to buy equity loan.

cakeforbrains

Forgot to say that all the markers are '1's.

Thrugelmir

A lender may well be concerned that you have an ARP on an overdraft. Whatever the actual reason it will ring alarm bells.

cakeforbrains

Thanks.

Yeah, it's a weird one. It was a current account overdraft. We paid it back and, within six months, the credit card from the same bank was trying to get us to increase its credit limit from £9600 to £12k (we declined). So, it feels like they're a bit fickle.

I almost wonder if it would be better to apply for the mortgage at the same bank because the account has been run impeccably since then.

Malmo

No, I would avoid an application to Nationwide for the very reason that they applied the AP / AR in the first place.

This type of credit issue is of far greater concern than your late payments and the impact of it should reduce with each year that passes.

Engage an independent whole of market broker for your circumstances.

cakeforbrains

Malmo wrote: »

No, I would avoid an application to Nationwide for the very reason that they applied the AP / AR in the first place.

This type of credit issue is of far greater concern than your late payments and the impact of it should reduce with each year that passes.

Engage an independent whole of market broker for your circumstances.

Thanks. The bank have also increased said overdraft since the incident (even though we don't use it). Does that make any difference?

We have engaged a broker. She didn't seem worried about the APs.

Malmo

cakeforbrains wrote: »

Thanks. Nationwide have also increased said overdraft since the incident (even though we don't use it). Does that make any difference?

We have engaged a broker. She didn't seem worried about the APs.

Has your broker successfully placed cases with APs on file before and how old/recent were the APs in those cases? That's what I would be asking. Different lenders have different attitudes towards an AP.

hieveryone

Have you tried to repair the damage before applying for the mortgage?

I had a late payment marker showing on my credit card. I called them and pleaded that as the account had been run impeccably since then, would they ever so kindly consider removing it as I was applying for a mortgage? And they did! Could be worth a try.

cakeforbrains

Thank you everyone.