Credit Card Late Payments and Mortgage Application

kingstreet

ShivasPlace wrote: »

Point 23 on the following link needs to be updated then!

http://www.moneysavingexpert.com/mortgages/buying-a-home-timeline

"YOU CANNOT DO THIS IF YOU NEED A MORTGAGE" needs to be added. What is written there applies only to cash purchasers who can pay their own SDLT upto 30 days after completion and by credit card directly to HMRC.

Hence my comment about the CML Handbook - that's the solicitor instruction book from the Council of Mortgage Lenders.

TJParsons

Yeah, I went by that guide and thought we'd be able to pay Stamp Duty by CC, was quickly informed that wasn't the case by our solicitor. Could trip people up whose finances are tight.

Whistler23

Thrugelmir wrote: »

Chalk it up to experience then. Any kind of breach of a contractual arrangement will be viewed dimly. Is has to be reported to make the data held by CRA's hold any value. The information being shared with other interested parties. There's no such thing as a free lunch in this world.

I figured as much. Definitely was a bit silly to not ask the question about what will be reported back to them. Considering now I have found some paperwork from Barclaycard in February this year that states the payment plan is over now and will be reported as such to the CRAs.

From the paperwork I found it, Barclaycard told her to miss the October payment to then be able to speak to them about paying a certain amount back. So she had arranged to pay £217 in December, January and February. Which is a little odd as the £217 was higher than her minimum payments due. It also went down as a late payment (with £12.00 charge) even though the Payments received on the 1st of each month were £217.00 with the minimum payment to be received by the 2nd.

It's almost as though over November, December, January and February the payments were to be (I am using examples here) £162.75 on the current balance as her minimum payment. She missed the October payment so Barclaycard took the 162.75, multiplied it by 4, and then made her pay the £651 over 3 months instead of 4 as the letter states that her account is no better or worse off.

So does the missed payment only relate to the October one, or because there was a revise of the payments she was to pay in the subsequent 3 months incur a late payment indicator as well?

Is it going to be no late payments since October, or will the lender look at November, December and January as well?

DRMANTISTOBOGGAN

Whistler23 wrote: »

OK, cheers guys, Will swap our plans over then. Will do fees on credit card and stamp duty with debit card.

Also got a family member willing to give us some cash if we need it after the move.

May not be the case with all solicitors but ours had a limit of £500 worth of fees that could be paid by credit card, probably worth checking before you instruct one?

ShivasPlace

kingstreet wrote: »

"YOU CANNOT DO THIS IF YOU NEED A MORTGAGE" needs to be added. What is written there applies only to cash purchasers who can pay their own SDLT upto 30 days after completion and by credit card directly to HMRC.

Hence my comment about the CML Handbook - that's the solicitor instruction book from the Council of Mortgage Lenders.

The guide also needs updating to include people who are financing a deposit through proceeds from a sale.

Whistler23

To all the Mortgage Advisors here, do you think that with our current situation.

Late payment 11 months ago
Salaries of 68k
Outstanding debt between us is £10k (loans, all set to end 5 months to 24 months)
10% deposit (possibly more)
First Time Buyers (if relevant)

We would get a high street lender?

Thanks!

Richey_

Hi I'm no expert but minus your debts owing from your 10% deposit and then how much deposit do you have? You are 10-15 years too late for "liar mortgages", be prepared for any lender to scruitanise closely as it appears that in reality you have very little deposit after debt repayment is taken out and that is a huge issue.
Not being nasty, just realistic. You know this answer already else you would have already had engaged an adverse credit style broker.....

If I was you I would 1. Be realistic how much actual "savings" you be after debt repayment and 2. Complaining that your girlfriend failed to pay her bills is hardly the banks problem.

Good luck, wish you well, I'd save up like everybody else including monies for stamp duty as putting that on credit card is surely a bad idea

Whistler23

We would still have 10%. We have cash left over but we would like to hold that back for spending on the property once we have one.

As previously stated we would now not put stamp duty on a credit card. I hardly see £2,500 as bad idea. But we will now pay the £2,500 cash and spend that money on decorating on the card.

I have been on nearly every single affordability calculator there is. I have been 100% honest, even to the penny, and rounded up when they don't accept pennies. I've even included childcare costs. Which is something that can very easily be hidden. And every single one (although they vary greatly) will lend us in principle what we would like to borrow and going with someone like Nationwide who will go up to nearly £300k which we do not want. As we would be stretching ourselves.

Never said it was the banks problem. The problem I have is they do not explain everything. If they had even mentioned credit files I would have just borrowed a couple hundred quid of the 10s of family members we have between us. I did not know it would cause a problem.

Thanks, we have done the saving, we have the cash needed. I just would like to know if a late payment 11 months ago will be a problem with Barclays, Santander, Nationwide etc.

csgohan4

Seems you need some hand holding, you really need a broker to match a mortgage product to your circumstances

Whistler23

Thanks for the reply csgohan. We do have a broker who has said to wait until this month. I just wanted a second opinion on if we would get a high street lender at a semi decent rate.

I don't understand why we would be that difficult? There are many success stories of people who are/were in a much much worse situation that is who have secured a highstreet lender.