Mortgage chances with one recent late payment?

JoshBrux

Hi guys, i was wondering if you could give me some advice and hopefully put my mind at rest. I've read these forums for a few hours now and although all I see is great advice, i cant find anything in regards to my situation.

We've just put a reservation on a new build house, everything was going well until I checked my credit score yesterday, only to find out there thats there has been a late payment registered for the month of August by 3 for a phone contract. I do accept full responsibility for this, I got a little angry after 3 months of switching to my new provider, i realised 3 were still charging me, so i stupidly cancelled the direct debit, the intention along was to pay them , when they called and asked. I genuinely couldnt be arsed to speak to their awful customer services.

I paid the bill on the date the letter came, which left me with a 1 month late payment, its just showing as '1' for the month on Clearscore. Up until this my score was excellent and I've had 0 issues since my file started about 6 years ago.

I called up 3 yesterday, to my suprise they agreed to remove the mark, they said they'd do it today. I rang back today only to be told it'll be removed on the 17th when account closes, I obviously begged and pleaded, but they're adamant it can't be removed until then and the account must stay open until that date.

Now the issue is, the house reservation is for 28 days, that will have taken up over 2 weeks of them, I've spoken to my broker, he said to maximise our chances he wants me to leave any application until afterwards, as we're using the Help to Buy Scheme, we're limited to about 15 lenders anyway, but he also said it could take a couple more weeks before the credit agencies update the banks of its removal.

This would obviously sail straight through the 28 day exchange date losing part of the reservation money.

I should mention, its a joint application with my other half, we're looking at a mortgage of around 226k and have a deposit of 40k, so loan amount of 186k and
around an 18% LTV.

Ive read on here that some banks ignore Mobile payments altogether, but seeing this is so recent i assume it would be more of a worry. Does anyone have any idea of how negatively this would effect my application?

ACG

You have misunderstood the mobile phone late payments criteria I think. The lenders criteria is usually defaults under £xxx ignored, mobile phone defaults ignored. By that they mean it still fits criteria even if the value of the default is 10 x time whatever £xxx is. It would still form part of the overall scoring of the application.

Get your equifax, experian and noddle credit report, is your mobile phone bill showing on all 3? If not, can you find a lender who uses that credit agenct?

If it is showing on all 3, then it will just be a case of finding the most likely lender to accept you. I would try to wait until it shows as being settled if I could, but without sounding blunt, it is what it is. You just have to make the best of it.

ACG

Not necessarily for it to be removed, but for the next marker to be applied - whichever is the soonest. Otherwise it may look like you are still in arrears.

If you can not wait, then it might be worth finding a more relaxed lender but I am working off limited information. I would be looking at the merits of your application before deciding what to do. You might be able to start straight away.

JoshBrux

The developer has said they dont necessarily "Rush', the 28 days and they'll stick with it as long as we're doing what we should be doing, starting two weeks late MAY not be a huge issue so that is a possibility.

How would I go about finding a more relaxed lender, im guessing these are all questions I should be asking my broker, although he hasnt yet asked for any sort of credit report.

ACG

Have you thought about a new broker?
Its not one for us, we do not do HTB EL mortgages (just so you dont think I am touting for business), but I would expect the broker to be asking for credit reports, if nothing else just to ensure there are no other adverse markers on there.

butterflybook

I would also expect the broker to be asking for credit reports especially if you are aware of a recent issue

JoshBrux

Good news, I've been on at 3 again, this time to the complaints depart, after an hour of grovelling theyve remarkably agreed to cancel the contract with immediate effect and remove the late payment marker by Tuesday.

Does anyone know if its safe to proceed with an application straight away or should I wait a couple of days after the removal?