So annoyed at myself

chester81

I have stupidly made a late payment for a catalogue account and now have a late payment marker on my credit file. It was for a catalogue account that I rarely use. Wife ordered some Christmas stuff but forgot to tell me. I paid late and the marker is now visible on my credit file!!

We were hoping to move house in 18 months- 2 years time ( once debts are paid) and now I am concerned that this marker will scupper my chances of getting a new mortgage. I do have some very old late payment markers. By the time we move this new late payment will be about 2 years old and my old markers 4.5 years,

Providing there are no more late payment, is this likely to cause me major issues in 18mnths - 2 years time???

ACG

Its unlikely to be a deal breaker.
It will have some impact on your credit score but it will come down to the rest of your application.

I wouldnt worry though.

Thrugelmir

A single late payment marker is highly unlikely to result in an outright decline. Focus on the things that improve your application chances. Clear the debts quicker and build your savings. Choice is yours.

chester81

Debts should be cleared in full within 2 years. We started with a shocking 40K of unsecured debt so I don''t think that we will be clearing them any quicker!! thanks for replying.

chester81

Spoke to a friend of mine who is a mortgage advisor ( they won't be doing our mortgage as I feel a bit awkward for them to see how much debt we have/had) She said that a '1' late payment marker won't cause too many problems but that '2' or '3' markers would.

is this correct?

ACG

It will affect your score.
If the 3 is within 2 years of making an application I believe it prevents you from Help to buy - but I could be wrong.

chester81

ACG wrote: »

It will affect your score.
If the 3 is within 2 years of making an application I believe it prevents you from Help to buy - but I could be wrong.

Sorry ACG, I don't think I was clear in my other post. We only have '1' late payment markers. We have never been more than 1 month late with any payment so I am hoping that this will no be such a major issue by the time we are ready to apply for a new mortgage.

ACG

In that case, just the first line. It will impact on the scoring.
Its difficult to say whether it will prevent you getting a Mortgage as it depends on the detail. But I have a client at the minute who has 3 x "1" on theircredit report and they were declined at 92% LTV but accepted at 90%. They can make the figures work so its fine but it would have been a case of trying another lender.

Obviously it will depend on the rest of the case so do not hold me to anything its not impossible to place a mortgage with a few late payments.

chester81

ACG wrote: »

In that case, just the first line. It will impact on the scoring.
Its difficult to say whether it will prevent you getting a Mortgage as it depends on the detail. But I have a client at the minute who has 3 x "1" on theircredit report and they were declined at 92% LTV but accepted at 90%. They can make the figures work so its fine but it would have been a case of trying another lender.

Obviously it will depend on the rest of the case so do not hold me to anything its not impossible to place a mortgage with a few late payments.

Thanks for info

Our LTV will be somewhere in the region of 70% so hopefully this will help us.

amnblog

I would be really surprised is this one marker tips you over on it's own Chester.

Next to telephone contracts, mail order is the biggest source or late payments and defaults on credit files.

Potential mortgage applicants would do well to avoid both.