Late payments...mortgage app

MaudeLebowski

Hi all.
I have late payments (3 consecutive months - October, November, December 2014) on my credit file for a now closed store card. Aside from these 3 entries, my report is good (defaults that I previously had have now dropped off); no other missed payments, well managed credit.

I've added a NOC on my credit reports with a little info on the late payments (mistyped info on Direct Debit form, then a short term change of address to look after an ill family member meaning i missed the reminder letters). Not sure what good the NOC will do but wanted to add it anyway.

Any ideas how big an impact these late payments will have if my partner and I try to apply for a mortgage in the next year? I know they'll be gone in 6 years, but wasn't sure if 4 years was a decent enough time lapse to help reduce the impact?

spadoosh

A few late payments 4 years ago shouldnt cause you huge issues.

You might pay a little bit more (ie restricted on some lenders so moved towards a higher rate deal) but i suspect you shouldnt have many issues getting a mortgage providing you meet affordability criteria.

So i reckon you could get a mortgage now, if you can afford it. The longer you leave it the more likely you are to start ticking off lenders individual lending criteria so more lenders and better rates should open up to you.

Worst case you try and someone says no, you wait 6 months for the search to drop off the credit file and your in the position you are now, but at least you know. Best case, youre in a new house in 6 months.

The NOC did nothing. You can type whatever you wan tin there and no one will verify that information so its just unreliable from lenders perspective. Dont get me wrong they have to read it but i picture it like underwriters having a little meet up to discuss who had the most elaborate NOC on their files that day to otherwise perk up what i think must be a relentlessly boring job.

[Deleted User]

MaudeLebowski wrote: »

Not sure what good the NOC will do but wanted to add it anyway.

It'll slow down any applications. and not improve your chances of acceptance at all. It might arguably worsen them.

Remove it at the first opportunity.