Late Payment prior to Mortgage Completion

nekr0mantik

Hello all

Wondering if anyone else been in this situation, so my credit report is currently marked as excellent which I know has no impact on mortgage lender checks.

I had my mortgage offer approved but am around 3-4 weeks away from exchange and completion.

However I had forgot I had direct debit cancelled and so had late payment charge on credit card first time. Today I cleared off the arrears and full balance so was 13 days after the payment was due.

Has anyone done this and then had mortgage offer withdrawn due to the 1 late payment?

[Deleted User]

Almost certainly. But that's not of any relevance to your application.

You just need to keep your fingers crossed - if you have a decent history, you'll probably be ok.

nekr0mantik

Deleted_User said:

Almost certainly. But that's not of any relevance to your application.

You just need to keep your fingers crossed - if you have a decent history, you'll probably be ok.

Yes I not had any late or missed payments before this. The balance on the card was £70 so not a huge amount.

I called them but the person on phone did not know much so asked if I can talk to someone who will know so hopefully they can call me back and I can apologise and get the marker removed.

In terms of the mortgage, my affordability had much higher amount then what Im purchasing so should not be at the limit of what is classed as unaffordable by the lender but with cost of living they may tighten rules.

nekr0mantik

Anyone else has experienced this?

Ebe_Scrooge

nekr0mantik said:

Anyone else has experienced this?

As ZX81 alluded to, it's irrelevant what the outcome for anyone else in a similar situation was - it's your individual circumstance that are important.  If, as you say, this is the only blemish in an otherwise well-managed history, I strongly suspect it will cause no issues whatsoever.

Had it been the case that you have many negative markers on your file already, and the mortgage offer was already borderline, then 1 more late payment may be the straw that broke the camel's back.  But a single "black mark" in isolation is highly unlikely to cause problems.

nekr0mantik

Ebe_Scrooge said:

nekr0mantik said:

Anyone else has experienced this?

As ZX81 alluded to, it's irrelevant what the outcome for anyone else in a similar situation was - it's your individual circumstance that are important.  If, as you say, this is the only blemish in an otherwise well-managed history, I strongly suspect it will cause no issues whatsoever.

Had it been the case that you have many negative markers on your file already, and the mortgage offer was already borderline, then 1 more late payment may be the straw that broke the camel's back.  But a single "black mark" in isolation is highly unlikely to cause problems.

True. My credit file used to be bad in terms of credit utilisation 5 years ago but have much improved in last 3 years. My loan amount is well under the affordability amount I got prior to late payment. So hopefully I'm ok.

Ebe_Scrooge

nekr0mantik said:

Ebe_Scrooge said:

nekr0mantik said:

Anyone else has experienced this?

As ZX81 alluded to, it's irrelevant what the outcome for anyone else in a similar situation was - it's your individual circumstance that are important.  If, as you say, this is the only blemish in an otherwise well-managed history, I strongly suspect it will cause no issues whatsoever.

Had it been the case that you have many negative markers on your file already, and the mortgage offer was already borderline, then 1 more late payment may be the straw that broke the camel's back.  But a single "black mark" in isolation is highly unlikely to cause problems.

True. My credit file used to be bad in terms of credit utilisation 5 years ago but have much improved in last 3 years. My loan amount is well under the affordability amount I got prior to late payment. So hopefully I'm ok.

Don't get "affordability" mixed up with "utilisation".  The CRAs do like to harp on about utilisation percentages, but as long as you're clearing your credit card in full each month (as you should be doing) then the percentage utilisation matters not one jot to a lender.  In fact, there's even an argument to suggest that using your card to pretty near its full capacity each month is a good thing, as the card issuer will be making more money (indirectly) from you in the form of fees they charge to the retailer every time you use it.  Assuming, of course, that you ALWAYS repay it in full every month.  And it's different if you're carrying a balance from one month to the next - never a good thing to do for so many reasons.

Affordability is very different, and is definitely a real thing.  If your take-home pay is £1000 per month and your outgoings are £500 per month, that's obviously a very different proposition to if your outgoings are £1100 per month.