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Missed payment after full mortgage offer

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Hi All,
We're in the process of waiting to move house. We have sold our house and we are waiting to move into the new house. Our full mortgage offer has been given by BOS, and we're just waiting on sellers being ready to go.

In the interim, we have missed a payment on our car insurance (a genuine error of not having cash in our bills account instead of our savings account). The car insurance company said that this would impact our credit rating, even though we can make the payment now.

What I'm now worried about is whether or not this will affect our mortgage offer? Anyone have any experience with this kind of thing? Kind of freaking out a bit.
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Comments

  • D3xt3r5L4b
    D3xt3r5L4b Posts: 1,852 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    If they are reporting it monthly it may flag up and the mortgage lender may still check your file before it goes through still.

    Why aren’t you paying the insurance in full?
  • We did offer this but they said it doesn't make a difference. Are we likely to be rejected on account of this?
  • Penguin_
    Penguin_ Posts: 1,586 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    If they are reporting it monthly it may flag up and the mortgage lender may still check your file before it goes through still.

    Why aren’t you paying the insurance in full?
    Not everyone can afford to pay insurance up front in one go.
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    edited 12 October 2020 at 2:17PM
    liam0404 said:
    We did offer this but they said it doesn't make a difference. Are we likely to be rejected on account of this?
    You might be. You might not. The fact is it is well known that people are advised not to apply for any new credit products whilst completing a mortgage as the lender does reserve the right to run another check just before completion. In this case they may do or they may not, now you havent applied for any new products but your missed payment will crop up if they do. Nobody on here will know if this means they will change their minds or not.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    If you are waiting to move and you've received the offer of a full mortgage, it seems unlikely that the mortgage company will check your credit file yet again, surely? Haven't you aleady been accepted - you must have been if you are now in the position of waiting for the sellers to move out.

    The car insurance company's black mark against you (meanies!) will take a while to get onto your file and it's only one missed payment, which isn't drastic. Many people miss a payment here or there.

    I really wouldn't worry about it. It's only one missed payment. I WOULD, however, set up a regular direct debit so you don't miss any more payments at all. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    liam0404 said:
    We did offer this but they said it doesn't make a difference. Are we likely to be rejected on account of this?
    You might be. You might not. The fact is it is well known that people are advised not to apply for any new credit products whilst completing a mortgage as the lender does reserve the right to run another check just before completion. In this case they may do or they may not, now you havent applied for any new products but your missed payment will crop up if they do. Nobody on here will know if this means they will change their minds or not.
    That comment is so unhelpful. You really don't know, so why bother?
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    OP, please ignore the above in its entirety. Mortgage companies DO run checks again before completion, there have been threads on here of people who have lost offers as a result of this.
  • MattMattMattUK
    MattMattMattUK Posts: 11,167 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    Nearly all mortgage providers conduct a final check on the day of completion, that is why you are advised to take out no credit or add anything to a credit card etc. in the period between AIP and completion. 

    If you are going through a broker I would speak to them immediately and if you are going direct to a bank it would probably be worth speaking to them, you should also speak to your conveyancing solicitor. The costs associated with having exchanged but being unable to complete could be very expensive, not to mention running the risk of leaving you temporally homeless. 

    You will probably find that it makes very little difference IF declared, probably no worse than a slight increase in interest rate, however if not declared it could cause a failure to complete after exchange which leads to huge problems. Also move money from your savings far above what is due to come out in the next month or two, one error will probably not be an issue, if it happens again it probably will be an issue. 
  • Thanks for the info - for further context we're talking about a £30 payment - based on previous experience, will we at least be given a chance to explain this to our lender?
  • MalMonroe said:
    liam0404 said:
    We did offer this but they said it doesn't make a difference. Are we likely to be rejected on account of this?
    You might be. You might not. The fact is it is well known that people are advised not to apply for any new credit products whilst completing a mortgage as the lender does reserve the right to run another check just before completion. In this case they may do or they may not, now you havent applied for any new products but your missed payment will crop up if they do. Nobody on here will know if this means they will change their minds or not.
    That comment is so unhelpful. You really don't know, so why bother?
    Better that than telling people the wrong thing.
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