Historic missed payments affecting mortgage

PMW17

Hi,

I am trying to apply for a mortgage, but due to missed payments on a now settled car finance account I am not able to borrow what I want.

The missed payments happened between May 2016 and Oct 2016, and amounted to £648 (£108 per month). The reason (I know banks don't look at the reason but hey-ho) for missing payments was that I had changed address and didn't realise I wasn't paying as the letters weren't being forwarded. This was after re-arranging the payment date, which for some reason the direct debit set-up didn't work.

This is frustrating as my mortgage advisor has said that in every other aspect I am an ideal candidate for a 95% mortgage for the value I want.

My question is, when will the missed payments cease to prohibit me from getting a 95% deal, and is there anything I can do to speed up the process?

I have spoken to the company which I had the finance agreement with, and asked them to review the status on my credit report as I believe that they were partly to blame (as I said earlier, I was under the impression that the direct debit had been set-up properly by them), but they are taking forever to get back to me, so I'm looking for some advice on other fixes.

[Deleted User]

The older they get, the better. They will drop off completely after 6 years.

A larger deposit can help overcome a higher risk application.

Thrugelmir

PMW17 wrote: »

I know banks don't look at the reason but hey-ho.

That's because it's the borrowers responsibility to manage their own affairs. Harsh but fair. As the vast majority of people have no issues.

PMW17

Thrugelmir wrote: »

That's because it's the borrowers responsibility to manage their own affairs. Harsh but fair. As the vast majority of people have no issues.

Very constructive, thanks.

bazzyb

PMW17 wrote: »

I have spoken to the company which I had the finance agreement with, and asked them to review the status on my credit report as I believe that they were partly to blame

You have zero chance of them taking away the late payment markers. The information is factual - you missed several payments, they will have contacted you immediately when you missed the first payment but you had moved home and not told them. This will remain on your credit file for six years.

PMW17 wrote: »

This is frustrating as my mortgage advisor has said that in every other aspect I am an ideal candidate for a 95% mortgage for the value I want.

What an odd thing to say - everybody is an ideal candidate... apart from the reasons that don’t make them an ideal candidate!

Thrugelmir

PMW17 wrote: »

Very constructive, thanks.

I sense your irony. My comment was intended to be informative rather than constructive.

Superscrooge

I think the problem is there were several months of missed payments. It wasn't just one or two months.

As others have mentioned they will have less effect as they get older assuming no further negatives on your file.

It might be worth posting on the mortgages board. There are a couple of mortgage advisers stalking that board that might be able to give you further advice?

System

PMW17 wrote: »

I have spoken to the company which I had the finance agreement with, and asked them to review the status on my credit report as I believe that they were partly to blame (as I said earlier, I was under the impression that the direct debit had been set-up properly by them), but they are taking forever to get back to me, so I'm looking for some advice on other fixes.

Did you not notice that your bank account had more money in than it should? You should take a look at your account every few weeks at the most so things like this get caught.

Assuming they stay on they're going to impact your ability and the rate offered at least for the next 3/4 years.

PMW17

As others have mentioned they will have less effect as they get older assuming no further negatives on your file.

It might be worth posting on the mortgages board. There are a couple of mortgage advisers stalking that board that might be able to give you further advice?[/QUOTE]

Thanks for bucking the trend and offering genuine helpful advice

lookstraightahead

I did this with a credit card in 2015. Three missed payments purely by accident. I!!!8217;m just playing a waiting game. Maybe save for a year so that your mistake is older and you have a bigger deposit