Missed payment marker straight to Stage 6 - is this allowed?

lt999

Hi,

My partner has a Stage 6 missed payment marker on her credit file from a utility company. However there are no 1,2,3,4 or 5 markers, just straight from green "up to date" ticks, to a 6 month marker. I'm confused about how an account can go from being up to date to 6 months late within a month, is this allowed?

finalfantasist

lt999 said:

I'm confused about how an account can go from being up to date to 6 months late within a month, is this allowed?

Is she 6 months in arrears?

lt999

finalfantasist said:

lt999 said:

I'm confused about how an account can go from being up to date to 6 months late within a month, is this allowed?

Is she 6 months in arrears?

No it was 18 months ago, the next marker after the stage 6 says up to date. I've spotted it as I'm going through the credit report in prepartaion for a mortgage application.

However I don't know whether or not she was 6 months in arrears at the time, I will need to look through old bills/bank statements to find out.

What I am trying to ascertain is whether the company have followed the correct procedure here, and whether I have any chance of arguing that its wrong based on the fact that they've gone from up to to date to 6 months late within a month

Fighter1986

The company may have reported the account as up to date right up until the point it reached being six months in arrears.

You could insist they correct the data, which they have an obligation to, but this would result in more arrears markers being added for the five months leading up to this "6" marker, clearly a worse position to be in.

Then the alternative is that the account was only one month in arrears and they made a reporting mistake which should be corrected by the "6" being replaced with a "1".

First find out if the account actually was six months in arrears eighteen months ago. If it was, let sleeping dogs lie. If it wasn't, raise a formal complaint to the utility provider. 

Arrears from over eighteen months ago are likely to have a minimal impact on a mortgage application if part of an otherwise squeaky clean application. 

I assume everything else about your application is rosy?  i.e. max 85% LTV, both full time permanent employed and salaried, neither in any debt, and looking to borrow 4.5x your joint annual salary or less? 

finalfantasist

lt999 said:

finalfantasist said:

lt999 said:

I'm confused about how an account can go from being up to date to 6 months late within a month, is this allowed?

Is she 6 months in arrears?

No it was 18 months ago, the next marker after the stage 6 says up to date. I've spotted it as I'm going through the credit report in prepartaion for a mortgage application.

However I don't know whether or not she was 6 months in arrears at the time, I will need to look through old bills/bank statements to find out.

What I am trying to ascertain is whether the company have followed the correct procedure here, and whether I have any chance of arguing that its wrong based on the fact that they've gone from up to to date to 6 months late within a month

It's really immaterial whether they've reported the 6-month arrears correctly as if, as Fighter1986 says, she really was 6 months in arrears then a complaint would almost certainly just result in the months leading up to it being reported as arrears too, as that would be the correct way to report it.

You need to find out if she really was 6 months in arrears before you take this any further.

lt999

Fighter1986 said:

The company may have reported the account as up to date right up until the point it reached being six months in arrears.

You could insist they correct the data, which they have an obligation to, but this would result in more arrears markers being added for the five months leading up to this "6" marker, clearly a worse position to be in.

Then the alternative is that the account was only one month in arrears and they made a reporting mistake which should be corrected by the "6" being replaced with a "1".

First find out if the account actually was six months in arrears eighteen months ago. If it was, let sleeping dogs lie. If it wasn't, raise a formal complaint to the utility provider. 

Arrears from over eighteen months ago are likely to have a minimal impact on a mortgage application if part of an otherwise squeaky clean application. 

I assume everything else about your application is rosy?  i.e. max 85% LTV, both full time permanent employed and salaried, neither in any debt, and looking to borrow 4.5x your joint annual salary or less? 

Thanks, this seems like the the best course of action.

Not quite squeaky clean. We have 20% deposit, both full time permanent and salaried, no debt and looking at about 4x joint salary. She does however have 2 more missed payment markers with the same energy supplier from 2 and 3 years ago, and another missed payment with a mail order catalogue over 2 years ago. My credit history is squeaky clean.

From my understanding I believe we will be able to get a mortgage, it's just a question of whether or not we will be paying adverse rates?

Fighter1986

lt999 said:

Fighter1986 said:

The company may have reported the account as up to date right up until the point it reached being six months in arrears.

You could insist they correct the data, which they have an obligation to, but this would result in more arrears markers being added for the five months leading up to this "6" marker, clearly a worse position to be in.

Then the alternative is that the account was only one month in arrears and they made a reporting mistake which should be corrected by the "6" being replaced with a "1".

First find out if the account actually was six months in arrears eighteen months ago. If it was, let sleeping dogs lie. If it wasn't, raise a formal complaint to the utility provider. 

Arrears from over eighteen months ago are likely to have a minimal impact on a mortgage application if part of an otherwise squeaky clean application. 

I assume everything else about your application is rosy?  i.e. max 85% LTV, both full time permanent employed and salaried, neither in any debt, and looking to borrow 4.5x your joint annual salary or less? 

Thanks, this seems like the the best course of action.

Not quite squeaky clean. We have 20% deposit, both full time permanent and salaried, no debt and looking at about 4x joint salary. She does however have 2 more missed payment markers with the same energy supplier from 2 and 3 years ago, and another missed payment with a mail order catalogue over 2 years ago. My credit history is squeaky clean.

From my understanding I believe we will be able to get a mortgage, it's just a question of whether or not we will be paying adverse rates?

Nah I wouldn't worry too much about her history. That "6" is a bit icky so it would be preferable if you can prove that the account was only one month in arrears but if you can't so be it.

Use an all of market broker to find a suitable lender, I can't see it being such a problem that you end up paying sub prime rates.

Good luck!!

Thrugelmir

Why not run it past a mortgage broker first. They'll know which lenders accept what.