Mortgage arrears.

YorkshireHardware

Several years ago I got into very bad money problems. I managed to keep my house, just, but had large arrears. I have been paying those off for several years. And was offered the opportunity to capitalise them onto the mortgage so have done so.

Because they are considered satisfied, how quickly will no longer showing as in arrears have an impact on my credit score? Will it only be after six years or does it happen gradually?

Many Thanks. 

RelievedSheff

The late payments will show on your credit file for six years. The effect of those will gradually diminish as the years go by.

Your credit score is only a made up number. It has no meaning. Lenders will look at your credit history and your payment history.

YorkshireHardware

RelievedSheff said:

The late payments will show on your credit file for six years. The effect of those will gradually diminish as the years go by.

Your credit score is only a made up number. It has no meaning. Lenders will look at your credit history and your payment history.

So even if something has been wiped off, is not showing as actual money owed, so I have zero arrears and zero debt, lit still shows as missed payment for 6 years? But the importance of value in people judging me by it diminishes? 

RelievedSheff

Yes. Your credit file will still show that there were late payments with late payment markers. But will now be showing that the latest payments are up to date.

As the late payment markers get older their affect gets less on your credit worthiness to lenders.

zzyzx1221

YorkshireHardware said:

RelievedSheff said:

The late payments will show on your credit file for six years. The effect of those will gradually diminish as the years go by.

Your credit score is only a made up number. It has no meaning. Lenders will look at your credit history and your payment history.

So even if something has been wiped off, is not showing as actual money owed, so I have zero arrears and zero debt, lit still shows as missed payment for 6 years? But the importance of value in people judging me by it diminishes? 

You won't have zero debt, your mortgage is debt.