Mortgage with one late payment on an impeccible history

Richnew

Hi all,

My girlfriend and I are looking at buying our first house. I went to see a mortgage advisor on Friday and she ran everything and commented that because i have been a long standing HSBC customer, with an HSBC advance account, they would be a good place to start. After running the comparison, a company called Direct Mortgages (i think, online only, need a smartphone to apply for their mortgage to accept it?) were on top, and HSBC were second. Because we want to borrow towards the top end of what most Mortgage providers will lend us, she applied for a mortgage in principle from HSBC, as they were going to provide us with the biggest mortgage.

An hour later i got a call saying they had declined the mortgage due to a failed internal credit check, which i just couldnt understand, my clearscore credit is 477 and experian is 999, i have been with HSBC for 17 years, had numerous loans and credit cards with them and never missed a payment before. When i got home there was a letter from HSBC explaining that i had missed a credit card payment and had been charged a £12 late fee. Looking in to it, last month i transfered my HSBC credit card balance to Barclaycard because of the rate i was getting charged from HSBC. Without realising i left £200 on my HSBC credit card and cancelled the direct debit, so a month later i had a late payment. The overdue payment was only £40 but i instantly paid the whole £200 plus the £12 late fee off the card so there is nothing left on it, and rang HSBC. They told me there was nothing they could do to remove the marker on my account and that they only remove markers on accounts that are there due to their own fault. The late fee was charged to me on the 30th of May, i paid the card off yesterday, the 8th of June as soon as i recieved the letter. I assume this makes it 9 days late?

So the questions from this situation are;

Will this late payment go on my credit report? I have seen a few people say that it doesnt until you are 30 days late. I was given till the 29th of June to pay the overdue amount, would it be after this time and i still haddnt paid that it would then get reported?

Will HSBC consider giving me a mortgage now the overdue amount, card balance and late fee’s are paid off? Or would this one 9 day late payment mistake in 17 years of impeccible payment/credit history with them mean they will refuse again?

Will i be ok getting a mortgage elsewhere even if this does go on my credit report? Am i likely to have to go with one of the poor credit lenders that give much less favourable interest rates?

Finally, we already have a mortgage in principle from Santander a few weeks ago, will this still be valid or should i not rely on it after the developments of the last few days?

I’ll be going to see the Mortgage advisor again, but shes on Holiday next week and we currently have a pending offer in on a house, so would like to understand the situation im in a bit better, sooner rather than later.

Thanks all in advance
Richard

amnblog

On holiday. Who is covering?

Richnew

Thanks for the reply.

As far as im aware, she's the only mortgage broker at that branch (shes based in the estate agent's office). I assume i could go to another branch if i needed to?

csgohan4

Richnew wrote: »

Thanks for the reply.

As far as im aware, she's the only mortgage broker at that branch (shes based in the estate agent's office). I assume i could go to another branch if i needed to?

Estate agent services avoid at all costs, I'm afraid this will be the start of your problems, get an independent whole of the market broker, it will save you a whole lot of toruble

ACG

(1) Will this late payment go on my credit report? I have seen a few people say that it doesnt until you are 30 days late. I was given till the 29th of June to pay the overdue amount, would it be after this time and i still haddnt paid that it would then get reported?

(2) Will HSBC consider giving me a mortgage now the overdue amount, card balance and late fee!!!8217;s are paid off? Or would this one 9 day late payment mistake in 17 years of impeccible payment/credit history with them mean they will refuse again?

(3) Will i be ok getting a mortgage elsewhere even if this does go on my credit report? Am i likely to have to go with one of the poor credit lenders that give much less favourable interest rates?

(4) Finally, we already have a mortgage in principle from Santander a few weeks ago, will this still be valid or should i not rely on it after the developments of the last few days?

(1) It is not quite that simple, but it may go on your credit report yes. You will find out on the next update.

(2)It does not sound like it, but ask them.

(3) Unlikely you will need poor credit lenders, but you may need to avoid the fussy lenders (HSBC/Santander are usually in that list).

(4) Possibly, but your circumstances have changed so it is not really reliable any more.

Richnew

Thanks for the replies.

The mortgage in principle i have currently is from an Independent advisor, First Mortgages North East, i thought i would just get a second opinion, which happened to be the estate agent based advisor.

Thanks
Rich