Returned direct debit. How will this affect mortgage application

Andrlawt

Hi,
I am just about to apply for a mortgage with my wife and stupidly I did not have enough money in account for Vodafone payment and the direct debit was returned I don't always have access to my phone in work and by time I saw text to say I was over limit, it was to late. I payed the next day but they tried to take it again anyway and the dd was returned again. I am I now likely to be refused mortgage for this? I never missed the payment before and although credit history is not great we do have mortgage in principal. Driving me mad thinking I may have ruined our chance of owning a house. Any thoughts on the chances of being accepted still would be appreciated.

Thanks

kingstreet

Are you planning to ask the bank in question for a mortgage?

Does your current account appear on one of your credit files? If it does, which one? Does your chosen lender take its feed from that CRA so it will be able to see your current account conduct?

Does your chosen lender request bank statements? If no, you're okay. If yes, will your application be quick enough that you can get away with providing statements upto the day or so before the you know what hit the fan?

If having a nice home is more important to you than your phone, suggest you ensure adequate funds are there for the time your debits go out each and every month...

David_White

This doesn't have to cause a huge issue, however I'd enlist the help of an experienced broker purely because you don't want to go to a lender that's going to request your bank statements.

Andrlawt

Yeah thanks I am with an experienced broker but have not contacted her yet and yes they require 3 months of statements. I have adverse credit which the proposed lender knows about. Like I said nothing else been returned in years. Tried to pay off to much on credit card thinking it would look better but ended up leaving the account in question short resulting in the return off dd. I paid it next day. I wait see what the advisor says. The payment is not classed as late with Vodafone so will not appear on credit report. I ve shifted the payment date now so don't need to worry about being missed a again just hope it's not a costly lesson.

David_White

If the broker is using an adverse lender then they will almost certainly check your bank statements.

Make sure your broker gives an extremely robust explanation to them.

Andrlawt

Will do thanks