Mortgage with late rent payments

XEO25

Hi, looking for some advice please...

I've had AIP agreed with Kensington and they're reviewing the full application now. First time buyer, full time employed, pretty standard application. They've asked for details of my landlord / letting agent (it's managed via a letting agent), I assume so they can confirm I've met rental commitments. This worries me for 2 reasons...

1 - I moved on to a rolling 1 month contract this year as I knew I'd be looking to get a mortgage so didn't want to sign up for another 12 months. I'm worried the agent / landlord might look to find another tenant now if they think I'm a flight risk.

2 - More importantly, out of the 22 rent payments I've made since being in the property, 8 have been paid late. 5 of these were 1 day late, and 3 were between 4 and 10 days late. The late payments are spread fairly evenly across the 22 months. Annoyingly, the only reason the payments were late was due to me simply forgetting to make the payment - I had an issue setting up a standing order initially, so just paid manually each month. The money was always there in the bills account. Stupid I know!

The letting agent only contacted me when 1 payment was 10 days late. I explained I had simply forgotten to pay, and made the payment within the hour.

Can anyone shed any light on how this might affect the application? I was hoping if I just be honest and say it was human error on those 8 occasions, and show them bank statements to show the money was available in the account each time, they might go easy on me - is this likely?

I was also hoping I could provide evidence in the form of bank statements + rental contract rather than providing my letting agents details, to avoid issue #1 above.

Any advice would be greatly appreciated.

Thanks

Edi81

Unless your credit file shows the late payments the lender won’t be aware of them. 

Are you using a broker?

XEO25

Edi81 said:

Unless your credit file shows the late payments the lender won’t be aware of them. 

Are you using a broker?

Thanks for the reply.

Yes I'm using a broker.

The lender is asking for my landlord / letting agents details - surely this is to confirm if I've missed any rental payments?

MalMonroe

XEO25 said:

Edi81 said:

Unless your credit file shows the late payments the lender won’t be aware of them. 

Are you using a broker?

Thanks for the reply.

Yes I'm using a broker..

The lender is asking for my landlord / letting agents details - surely this is to confirm if I've missed any rental payments?

Yes maybe they do want to check that you are a reliable tenant but you haven't missed any payments, have you? And you have an AIP so I'd take that as a good sign. 

If the landlord hasn't complained to you directly in the past, I wouldn't worry about this too much. Nobody's complained and you haven't been asked to leave. All good, surely?

Also, as you are on a rolling one month contract, it won't be a shock to anyone when you hand in your notice to quit. Besides, the landlord/agent will have to get you out before they can put anyone else in your property and from what I can gather, that is not an easy task. (Even when tenants haven't paid any rent at all.)

XEO25

MalMonroe said:

XEO25 said:

Edi81 said:

Unless your credit file shows the late payments the lender won’t be aware of them. 

Are you using a broker?

Thanks for the reply.

Yes I'm using a broker..

The lender is asking for my landlord / letting agents details - surely this is to confirm if I've missed any rental payments?

Yes maybe they do want to check that you are a reliable tenant but you haven't missed any payments, have you? And you have an AIP so I'd take that as a good sign. 

If the landlord hasn't complained to you directly in the past, I wouldn't worry about this too much. Nobody's complained and you haven't been asked to leave. All good, surely?

Also, as you are on a rolling one month contract, it won't be a shock to anyone when you hand in your notice to quit. Besides, the landlord/agent will have to get you out before they can put anyone else in your property and from what I can gather, that is not an easy task. (Even when tenants haven't paid any rent at all.)

Thanks for your reply.

Am I getting confused around definitions? I have 8 (out of 22) late payments. Are these not considered as missed payments? 

I was expecting people to say I've got no chance.

[Deleted User]

Yes - from a credit reporting viewpoint, late payments are missed payments.

It all depends on what your landlord/agent decide to say.

kingstreet

You need to ask your broker for an opinion on this. Some lenders aren't interested despite asking for landlord/letting agent details. Others want a reference or evidence of payments.